The influence of perceived level of education, personality, and experience on accounting understanding (on micro, small and medium enterprises in north Sumatra)

Abstract

This study aims to determine the perception and understanding of Micro, Small and Medium Enterprises (MSMEs) on the importance of financial statements. In this study is a type of quantitative descriptive research. This study used primary data obtained from the results of questionnaires distributed to approximately 200 MSME actors in North Sumatra spread across several sub-districts. The results showed that the perception of MSME actors in North Sumatra Regency has experienced a good perception as evidenced by the results of the study that the average repsonden already knows the importance of financial statements in a business, including to find out business development, support business interests such as tax interests and the interest of applying for credit to the Bank as additional capital. This good perception is influenced by experience or length of time running a business and also educational background. However, the understanding of MSME actors in North Sumatra still needs to be improved. There are some business actors who do not know the concept of transaction journaling even though this is the basis for preparing financial statements.