Abstract
This study is a qualitative study that analyzed Micro, Small and Medium Enterprises (MSMEs) in Mojokerto Regency, East Java Province in carrying out financial reporting through an accounting information system based on Financial Accounting Standards for Micro, Small and Medium-sized Entities (FAS EMKM). The research was conducted in the Mojokerto Regency, East Java Province where the research subjects were MSMEs actors, while the object studied was an accounting information system based on financial accounting standards for micro, small and medium entities in MSMEs. By using a triangulation approach in collecting data, namely interviews, observations and documentation, the data analysis carried out also refers to a triangulation approach, so that the data obtained are then analyzed and discussed with reference to theory and empirical. The results of data analysis show that MSMEs actors have not as a whole implemented an accounting information system. MSMEs actors only record simple transactions including sales, purchases, debts, receivables, profit or loss. Likewise, because the accounting information system has not been implemented, the financial accounting standards of micro, small and medium entities have not been implemented by MSMEs actors.
Highlights
In Indonesia, Micro, Small and Medium Enterprises (MSMEs) have an important role in supporting the Indonesian economy, it is proved that based on data from the Ministry of Cooperatives and Small and Medium Enterprises, in 2019 there were around 65 million MSMEs involving around 123 million workers
The subjects of this study were several MSMEs actors located in Mojokerto Regency, East Java Province, Indonesia, while the object of this research was the application of Financial Accounting Standards (FAS) EMKM standard Accounting Information Systems (AIS) to MSMEs
MSMEs have an important role in the Indonesian economy, several obstacles and constraints have limited the growth prospects of these companies
Summary
In Indonesia, Micro, Small and Medium Enterprises (MSMEs) have an important role in supporting the Indonesian economy, it is proved that based on data from the Ministry of Cooperatives and Small and Medium Enterprises, in 2019 there were around 65 million MSMEs involving around 123 million workers. Compiling good financial reports is not an easy thing for MSMEs, because MSMEs only have the view that MSMEs are important to be able to run a business and earn profits. With this view, most MSMEs do not prepare financial statements in accordance with standards and do not prepare personnel who are able to make these financial reports. Recognizing the importance of the role of Accounting Information Systems (AIS) on MSMEs to access financing and manage businesses, MSMEs need to implement AIS in accordance with the standards, namely Financial Accounting Standards (FAS) for Micro, Small and Medium Entities (EMKM). Based on the above background, the problem in this study is “how SMEs apply AIS with FAS EMKM standards”
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