EDUCATION AND ASSISTANCE IN PREPARING MSME FINANCIAL STATEMENTS FOR ACCESS TO FINANCING

Micro, Small, and Medium Enterprises (MSMEs) in Bogor Regency contribute significantly to the regional economy. However, they frequently encounter challenges in achieving optimal financial management, particularly in the preparation of accurate and relevant financial statements. This situation impedes their ability to comprehensively assess business performance and consequently hinders efforts to enhance turnover. Sound financial reporting is not merely an administrative requirement; it also provides critical information for strategic decision-making, attracting potential investors, and securing access to funding. This study investigates the optimization of financial reporting as a means to improve turnover for MSMEs in Bogor Regency. Optimization strategies include the provision of training and mentoring programs. Furthermore, the availability of robust financial statements enables MSMEs to pursue business development opportunities through capital acquisition and integrated digital marketing initiatives. Approaches to optimizing MSME financial reporting involve enhancing accounting literacy, implementing appropriate accounting standards (SAK EMKM), and leveraging information technology in the preparation of financial statements. By improving their financial reporting practices, MSMEs can better analyze sales performance, identify opportunities for enhanced efficiency, and develop more effective marketing strategies, ultimately leading to sustained increases in turnover.

This study examines the financial management of Micro Small and Medium Enterprises (MSMEs) in Indonesia and Malaysia which are the drivers of the economy in both countries, but this sector has not been able to become an independent sector and become the foundation of the national economy in both countries. The problem is that financial management in Micro Small and Medium Enterprises (MSMEs) ignores the importance of financial management standards, the problem is that poor financial management makes Micro Small and Medium Enterprises (MSMEs) insignificant in advancing the economy. The method used is descriptive qualitative with a case study approach. Data were obtained from MSME actors by distributing questionnaires and interviews. The results of this study indicate that MSME financial management in Indonesia is not as good as Micro Small and Medium Enterprises (MSMEs) in Malaysia, meaning that Malaysia has better MSME management, this can be seen from various research indicators, namely: planning indicators, budget use, recording, reporting and controlling. Micro Small and Medium Enterprises (MSMEs) in Indonesia and Malaysia when compared to Indonesian Micro Small and Medium Enterprises (MSMEs) do not have good planning, have not carried out standard records, standardized reporting, are not concerned with standard financial statements, balance sheets, profit and loss, cash flow, do not have or install systems in their business units, such as control of systems and procedures, billing records of sales notes, it is very clear that Micro Small and Medium Enterprises (MSMEs) in Indonesia have not done so. Meanwhile, from the other side, when compared to Indonesian MSME respondents, the level is very small, more so for micro cart businesses, small shops that are not in the form of their own buildings, the context is very small. In Malaysia, micro, small and medium enterprises are not comparable to the conditions in Indonesia, while in Malaysia, the Micro Small and Medium Enterprises (MSMEs) already have a more appropriate place. Thus, it is easier for Micro Small and Medium Enterprises (MSMEs) in Malaysia to get banking support, while Micro Small and Medium Enterprises (MSMEs) in Indonesia are still difficult to upgrade and are still difficult to enter the bank compared to Malaysia.

Micro, small, and medium enterprises (MSMEs) play a crucial role in the local economy, including in the South Tambun District. However, MSMEs often face challenges in accurate and effective financial reporting. The lack of understanding of important aspects of financial reporting can hinder the growth and sustainability of their businesses. This activity aims to provide assistance and development in financial reporting to Frozen Food Segara Biru, an MSME located in the South Tambun District. In this assistance program, we collaborate with the business owners and their financial staff to enhance their understanding and skills in transaction recording, financial statement preparation, financial performance analysis, and sound financial management strategies. The methodology used is a collaborative approach, where we involve the business owners and financial staff in every step of the assistance process. We provide training and guidance on the concepts and practices of good financial reporting, as well as practical guidance on the use of accounting software or cloud-based applications to facilitate financial recording and reporting. It is expected that the results of this assistance will enhance the understanding and financial reporting skills of Frozen Food Segara Biru, which, in turn, will assist them in making better business decisions, improving operational efficiency, and accessing better financial resources such as loans or investments. Through this research, we hope to provide new insights into the importance of assistance and development in financial reporting for MSMEs, as well as offer practical recommendations for further development in this area. By supporting MSMEs in improving their financial reporting practices, we contribute to their overall growth and contribute to the local economy's development.

This research aims to analyze the factors in the implementation of the financial statements at MSMEs in the Pontianak City. This research was conducted because of the increasing number of Micro, Small, Medium Enterprises in Pontianak. In line with the term, the entrepreneurs experienced problems in the financial administration process. The main problem related to the preparation of financial statements has not been implemented by business people in the MSME sector and tends to do very simple records and certainly not in accordance with accounting standards. The subjects in this research are Micro, Small and Medium Enterprises (MSMEs) in Pontianak City and the respondents involved are entrepreneurs. The sampling technique is simple random sampling with a quantitative approach. Data processing and analysis techniques use data quality test, classic assumption test and multiple regression. This research shows the results that the independent variables X1, X3, X4 (education level, accounting understanding, and business scale) partially have a significant influence with a positive direction on the implementation of the financial statement recording of the MSMEs sector. While the independent variable X2 is accounting training was not proven to have an effect. Simultaneously there is an influence of the four independent variables on the dependent variable.

Challenges in financial management, such as the lack of understanding of financial statements, have become a major obstacle to the growth of Micro, Small, and Medium Enterprises (MSMEs). Most MSME actors do not yet grasp the importance of preparing financial statements by Sharia accounting standards, resulting in financial statements that are often made haphazardly without following proper accounting principles. This Community Service Program aims to enhance the capacity of MSMEs under the guidance of the Chamber of Commerce and Industry (KADIN) Bandung in preparing Sharia-based financial statements. The focus of the training includes the introduction of basic Sharia accounting principles, recording transactions in line with Sharia contracts, and preparing financial reports such as income statements, balance sheets, and cash flow statements. Technical assistance is also provided directly to help MSMEs overcome difficulties in implementing a Sharia-based financial system. Survey results indicate that more than 70 percent of MSMEs in Bandung are interested in learning how to prepare Sharia-based financial statements, although they still face challenges in applying the correct methods. This program is expected to offer practical solutions for MSMEs to properly and accurately prepare financial statements by Sharia accounting standards. Moreover, the initiative aims to help MSMEs gain broader access to various Sharia financing institutions and enhance their competitiveness in the era of free trade.

The rapid advancement of time and technology has significantly impacted the existence of Micro, Small, and Medium Enterprises (MSMEs). However, MSMEs still face certain limitations, such as the tendency to mix personal and business finances. This study aims to evaluate the influence of implementing the SAK EMKM (Financial Accounting Standards for MSMEs) in the preparation of MSME financial statements, both partially and simultaneously. The research population consisted of 79,460 MSMEs, and a random sampling technique was used to select 100 respondents. A quantitative approach was employed in this study. The findings indicate that business scale and financial literacy do not have a significant partial effect on the implementation of SAK EMKM. On the other hand, accounting and financial statement understanding, human resource quality, and MSME actors' readiness show a partial influence on the application of SAK EMKM in preparing financial reports. However, when considered simultaneously, business scale, accounting and financial statement understanding, financial literacy, human resource quality, and the readiness of MSME actors all influence the implementation of SAK EMKM in the preparation of MSME financial statements.

Micro, Small, and Medium Enterprises (MSMEs) have an important contribution in supporting the national economy, especially in terms of job creation and strengthening the local economy. However, most MSMEs still face challenges in compiling financial statements that are in accordance with applicable accounting standards. This study aims to analyze the extent to which the implementation of Financial Accounting Standards for Micro, Small, and Medium Entities (SAK-EMKM) has been implemented by MSME actors, as well as identify the obstacles faced in the process. The research approach used is qualitative descriptive, with data collection techniques through interviews, direct observation, and document review. The findings of the study show that the level of understanding of MSME actors towards SAK-EMKM is still low, and the implementation of these standards is not evenly distributed. The main causative factors include limited accounting knowledge, lack of professional assistance, and lack of access to technical training. In addition, most MSMEs still rely on manual recording without referring to correct accounting principles, making it difficult in the audit process or applying for loans to financial institutions. Another obstacle is the lack of digital literacy in financial management, as well as the assumption that the preparation of financial statements is not a top priority. In fact, well-structured financial statements can be an important tool in business decision-making and open access to funding. This study recommends the importance of collaboration between the government, academics, and financial institutions to provide training, mentoring, and a simple reporting system that is in accordance with the characteristics of MSMEs. This effort is expected to increase the awareness and ability of MSMEs to manage finances in an accountable and transparent manner, as well as support business growth and sustainability in the long term.

The role of Micro, Small and Medium Enterprises (MSMEs) in the national economy in Indonesia is quite large. If MSME is managed and developed properly, it can create a strong MSME so that it can sustain the Indonesian economy. The condition of MSMEs as the backbone of the Indonesian economy can be seen in the 1997 monetary crisis, where many large companies went out of business and only MSMEs were able to survive. Accounting has an important role in the progress of MSMEs. This is due to the existence of good accounting records and in accordance with established accounting standards, it can help small businesses in making the right decisions, facilitate in obtaining credit from creditors and can provide accurate and timely information. By using financial statements as a basis for looking at the financial condition of a business, every decision taken by a business actor is based on real financial conditions. Seeing the importance of the level of knowledge of small entrepreneurs to the preparation of simple financial statements based on MSME Financial Accounting Standards in Indonesia, the researcher is interested in conducting a study entitled "Identification of the Level of Knowledge of Small Entrepreneurs on the Preparation of Simple Financial Statements Based on SAK-EMKM in the Medan Labuhan Sub-District Environment."

The role of MSMEs (Micro, Small and Medium Enterprises) are to improve the economy and reduce the unemployment in Indonesia is widely significant regarding to the growth of MSME growth in every year. However, MSMEs often find some problem which obstruct its business growth especially about the ffunding. The phenomena that exist today, many MSMEs only using funds/private capital to develop their business with reason their business is still in early growth. In fact, instead in early growth, MSMEs must do the innovation in order to be more competitive in the marketplace. In 2015, Indonesia was starting to face Asean Economic Community (AEC) where as the market competition will be more competitive for MSMEs. Therefore, to provide private capital also required other capital (loans) from third parties to fund the business growth of MSMEs. The reason why MSMEs do not make loans from other parties is about the unavailability of the financial statements based on SAK ETAP which can facilitate to access bank lending. Unavailability of financial statements in accordance with SAK ETAP on MSMEs has several factors, namely, costs are relatively expensive to pay for experts in the field of accounting, a lack of understanding in presenting financial statement based on SAK ETAP and the perceptions of MSMEs that considesr the financial statements are not urgency to do. This research aims to obtain empirical evidences whether the giving of information and socialization, educational background, level of education, size of enterprises and long effect on the understanding of MSMes in presenting financial statements based on SAK ETAP on MSMEs. The object in this study is MSMEs in Palembang city with number of respondents of 40 MSMEs with characteristics of small and medium enterprises. Data retrieval in this study using a questionnaire which is then processed using logistic regression analysis. The results of the study prove that giving information and socialization, educational background, level of education and business size do not affect on the understanding of MSMes in presenting financial statements based on the SAK ETAP on MSMEs. Only long effect affect on the understandability of MESMEs in presenting the financial statement.Keywords: SAK ETAP on MSMEs, Financial Statements, Understandibility of MSMEs.

The role of MSMEs (Micro, Small and Medium Enterprises) are to improve the economy and reduce the unemployment in Indonesia is widely significant regarding to the growth of MSME growth in every year. However, MSMEs often find some problem which obstruct its business growth especially about the ffunding. The phenomena that exist today, many MSMEs only using funds/private capital to develop their business with reason their business is still in early growth. In fact, instead in early growth, MSMEs must do the innovation in order to be more competitive in the marketplace. In 2015, Indonesia was starting to face Asean Economic Community (AEC) where as the market competition will be more competitive for MSMEs. Therefore, to provide private capital also required other capital (loans) from third parties to fund the business growth of MSMEs. The reason why MSMEs do not make loans from other parties is about the unavailability of the financial statements based on SAK ETAP which can facilitate to access bank lending. Unavailability of financial statements in accordance with SAK ETAP on MSMEs has several factors, namely, costs are relatively expensive to pay for experts in the field of accounting, a lack of understanding in presenting financial statement based on SAK ETAP and the perceptions of MSMEs that considesr the financial statements are not urgency to do. This research aims to obtain empirical evidences whether the giving of information and socialization, educational background, level of education, size of enterprises and long effect on the understanding of MSMes in presenting financial statements based on SAK ETAP on MSMEs. The object in this study is MSMEs in Palembang city with number of respondents of 40 MSMEs with characteristics of small and medium enterprises. Data retrieval in this study using a questionnaire which is then processed using logistic regression analysis. The results of the study prove that giving information and socialization, educational background, level of education and business size do not affect on the understanding of MSMes in presenting financial statements based on the SAK ETAP on MSMEs. Only long effect affect on the understandability of MESMEs in presenting the financial statement.Keywords: SAK ETAP on MSMEs, Financial Statements, Understandibility of MSMEs.

Implementation of community service activities carried out in the form of Digital Marketing Development and Quality Improvement of Financial Report on Rafflesia Small And Medium Enterprises in Batam City. Based on the results of the interview in the field that Rafflesia SMEs have problems marketing the results of production and financial recording. One form of marketing that is often used is only done bidding through relatives of SME members, Bazar and through exhibitions organized by the Cooperative Office and MSMEs. In general, SME members have limitations in mastering the use of information technology facilities with marketing media that is not known to the public. The training method used is to provide training on cases of SME transactions that need to be completed from journals to financial statements accompanied by training using digital marketing through social media. The methods used in the construction of Rafflesia SMEs to be given are survey methods, lecture methods, discussion methods and training methods. Devotion has been carried out 5 times with material making financial statements and digital marketing management through shopee. Rafflesia Small and Medium Enterprises (SMEs) that have been built in digital development, need to conduct exercises independently in the daily practice of SME mothers in terms of doing product promotion media to increase sales. So that it can get used to its daily business needs. Small and Medium Enterprises (SMEs) that have been built can prepare financial statements independently, so that Rafflesia SMEs are able to compile sak-etap standard financial statements.

Fraud that occurs in MSME players today is increasingly diverse. Fraud can take the form of financial statement fraud, mixing personal finances with business finances or dishonesty in running a business. This causes a prolonged dilemma for MSME actors in managing business income. Many MSMEs have not been able to manage good financial reports. This Research Objective is used to gain a deeper understanding of the behavior and detection of fraud that occurs in Micro, Small and Medium Enterprises (MSMEs) based on the Fraud Triangle Theory and the efforts made by MSMEs in preventing and detecting fraud early. The type of sample experiment research used is the random method. The method of collecting information through direct observation and questions, FGDs and the technique of using documentation in the data collection process. The data analysis approach involves the steps of data reduction, data presentation and data verification. The results of the analysis explain that MSME actors do not all carry out financial statement management and still carry out a lot of fraud. The implications of this research contribute to the understanding of fraud, especially by forensic accountants, auditors, fraud examiners and anti-fraud examiners who are used to see fraud in MSMEs. Highlights : Fraud in MSMEs is multifaceted, encompassing financial statement manipulation and unethical business practices. Research aims to understand fraud behavior using the Fraud Triangle Theory and explore MSME efforts in fraud prevention. Utilizes random sampling and data collection methods like direct observation, FGDs, and documentation to gather comprehensive insights. Keywords : Fraud Triangel, Financial Statements, Fraudulent Behavior and MSMEs

Micro, Small and Medium Enterprises (MSMEs) Cirebon Batik has a significant role in the development of the National Economy. MSMEs Batik Cirebon is a growing and developing economy based among the people who has the potential to be upgraded the backbone of the country's economy, because batik is one of Indonesia's proud garment products. Cirebon Batik MSMEs has experienced financial problems including financial management. Education is one way to make MSMEs aware of the importance of financial management. Therefore, our service is to provide education on the introduction of the Mobile-based Accounting Application for MSMEs in Batik Cirebon MSMEs which aims to facilitate and accelerate the preparation of financial statements. Keywords: MSMEs Accounting Application, Mobile Based Application, Education, MSMEs Batik Cirebon.

Background: South Africa needs more than one million new small and medium enterprises (SMEs) that can create approximately 10 million new jobs to reduce the unemployment rate below 10%, as new SMEs significantly contribute to economic growth. Aim: This study explored how formal financial institutions (FFIs) perceive financing new SMEs, the credit approval rate for new SMEs, the credit criteria that influence the willingness of FFIs to finance new SMEs and the challenges experienced by FFIs in financing new SMEs. Setting: This study focused on the eight largest FFIs in South Africa. Because external equity and venture capital are expensive and seldom available to new SMEs, new SMEs tend to rely on cheap debt from FFIs. Methods: A qualitative research approach positioned in the interpretivist paradigm was used to achieve the research objectives. Data were collected from 16 participants using semi-structured in-depth interviews and analysed using the five-step process of content analysis by Terre Blanche, Durrheim and Kelly. Results: The findings revealed that although FFIs perceive new SME financing to be highly risky, SMEs also provide potential business opportunities. In addition, equity contribution and credit profiles of new SME owners are the most important criteria that influence the willingness of FFIs to finance new SMEs. Conclusion: With sufficient financial support from FFIs, South Africa’s development issues can be addressed since the creation and sustainability of new SMEs is vital to the country’s economic prosperity. Contribution: This study contributes to the knowledge base on new SME financing in South Africa from a supply-side perspective.

Purpose: Community service activity by Lecturers of Accounting Study Program of Universitas Terbuka (UT) aims to provide training for the community of Micro, Small, and Medium Enterprises (MSMEs) in making financial reports in accordance with accounting standards for MSMEs. This is conducted to solve the problems faced by MSMEs who still have a lot of difficulties in recording and reporting financial statements, which ultimately has an impact on the difficulty of obtaining credit from financial institutions. Method: This activity was attended by MSMEs from Banten Province and consisted of several stages, namely (1) planning, through discussions with MSMEs, (2) presentation from speakers, answering questions and discussions through web seminars in the Zoom application as well as live streaming in UT's youtube channel and (3) mentoring the making of financial reports to five participants who answered the quiz. Result: The results of community service activities show that MSMEs are able to enable the preparation of SAK ETAP MSME financial statements in the form of general journals, adjustment journals, ledgers, balance sheets, working papers, income statements of MSME actors ready to develop and successfully get capital assistance from financial institutions. Conclusion: This exercise is highly valuable for participants and stimulates them, according to the comments received from them. And it is believed that with the help of financial statements, banks, and non-bank financial institutions would be able to give loans to MSMEs.