The Role of Financial Reports for MSMEs in Gianyar District

Abstract

MSMEs play an important role as the driving wheel of the regional economy. Financial statements are one of the components that can be used as a barometer to assess business development. The results of the BPS survey show an increase in the quantity of MSMEs after the new normal (2020). However, is this increase in line with quality? There are still many assumptions that the process of preparing financial statements is very complicated. Not even a few who have not prepared financial reports. This research was conducted in Gianyar Regency, as one of the areas where MSME growth has been very fast compared to other districts in Bali Province from 2020 until now. This study analyzes MSME perceptions of financial statements, constraints and influences on the preparation of financial reports on MSMEs with a descriptive approach using the focus group discussion (FGD) method and supported by the results of a questionnaire survey. Involved 10 informants and 100 respondents selected through purposive sampling. The results of this study are expected to be able to provide consideration for SMEs regarding the importance of preparing financial reports in running a business. It is our hope that the output of this research can be additional literacy as well as input on the importance of financial reports and the role of accounting in business development. As well as shifting the accounting paradigm from making it difficult to accounting to help businesses.