The Implementation of SAK EMKM on UMKM Financial Reports (Case Study of Cibuntu Tofu UMKM, Bandung)

Abstract

Industry in Indonesia is developing quite rapidly, especially home industries that support people's lives; one of which is tofu industry. In reality, this tofu industry is not yet developing due to the absence of good management and financial administration system caused by the lack of knowledge of SMEs (hereby called UMKM) about the importance of making financial reports. Accordingly, UMKM have difficulties in knowing and understanding their business financial condition. This research aims to help UMKM owners implement SAK EMKM (Financial Accounting Standard for UMKM) in preparing standardized, relevant, and reliable financial reports. The method of implementing research is a case study of Cibuntu Tofu UMKM in Warung Muncang Village, Bandung Kulon District, Bandung City. The research presentation approach is descriptive analysis. Data collection techniques for research activities are observation, interviews, and documentation. The result of this study is Cibuntu Tofu UMKM makes financial reports still manual and very simple and not in accordance with standard because business owners do not understand the financial reporting standards specifically for UMKM. The application of financial statements in accordance with SAK EMKM presents financial statements consisting of three components such as financial position reports, income statements, and notes to financial statements. This financial report can be used for accountability, reviewing the company's budget, measuring going concern companies, making business plans, knowing the financial condition and submitting additional capital to the bank. This research is also expected to provide information for MSME owners Cibuntu Tofu in implementing SAK EMKM.