Analysis of Financial Literacy, Accounting Technology, and SAK EMKM Compliance among MSMEs in Indonesia

Mutmainah; Melinda Wijaya

doi:10.63922/ijebir.v5i04.5536

Mutmainah Faculty of Economics and Business, Universitas Lambung Mangkurat, Banjarmasin, South Kalimantan, Indonesia
Melinda Wijaya Faculty of Economics and Business, Universitas Lambung Mangkurat, Banjarmasin, South Kalimantan, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i04.5536

Keywords: financial literacy; accounting technology, SAK EMKM, financial reporting quality, micro, small, and medium enterprises (MSMEs).

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia's economic development; however, the quality of their financial reporting remains relatively low due to limited financial literacy, inadequate adoption of accounting technology, and insufficient compliance with the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM). This study aims to analyze the determinants of financial reporting quality among Indonesian MSMEs by examining the roles of financial literacy, accounting technology, and SAK EMKM compliance. The research employs a qualitative library research approach by reviewing academic journals, books, government reports, accounting standards, and other relevant literature. The findings indicate that financial literacy improves MSME owners' ability to prepare accurate financial statements, accounting technology enhances reporting efficiency, accuracy, and timeliness, while compliance with SAK EMKM strengthens the reliability, comparability, and credibility of financial reports. Furthermore, the study highlights the importance of integrating accounting knowledge, digital transformation, and regulatory compliance to improve financial governance and expand MSMEs' access to formal financing. The novelty of this study lies in its comprehensive conceptual framework that integrates accounting theory, digital accounting technology, financial literacy, and Indonesia's current MSME development policies, providing a broader perspective on improving financial reporting quality in the MSME sector.

References

Ariani, Dian and Septiani, Rina. (2023), The Effect of Accounting Digitalization on Financial Reporting Quality of Micro and Small Enterprises, Journal of Small Business Strategy, Vol. 33, Iss. 1, pp. 45-60.
Davis, Fred D. (1989), Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology, MIS Quarterly, Vol. 13, Iss. 3, pp. 319-340.
Dechow, Patricia M. and Schrand, Catherine M. (2004), Earnings Quality, CFA Institute, Charlottesville, VA.
Dewi, Wike Kusuma and Wahyuni, Rina. (2023), Pengaruh Literasi Keuangan terhadap Pengelolaan Keuangan Usaha Mikro Kecil dan Menengah (UMKM), TARGET: Jurnal Manajemen Bisnis, Vol. 5, Iss. 2, pp. 112-124.
Fauzan, Muhammad and Hartati, Nur. (2024), Digital Literacy and Financial Record-Keeping of MSMEs, Journal of Economics and Development Studies, Vol. 12, Iss. 1, pp. 45-58.
Francis, Jennifer, LaFond, Ryan, Olsson, Per and Schipper, Katherine. (2008), The Market Pricing of Accruals Quality, Journal of Accounting and Economics, Vol. 39, Iss. 2, pp. 295-327.
Hadi, Riko and Rahayuningsih, Tri. (2022), Kepatuhan UMKM terhadap Penerapan SAK EMKM dan Dampaknya terhadap Kualitas Laporan Keuangan, Jurnal Akuntansi Multiparadigma, Vol. 13, Iss. 2, pp. 185-196.
Hakim, Ahmad Rofi, Narulita, Sri and Iswahyudi, Mochammad. (2024), Digitalisasi Pencatatan Keuangan Usaha Kecil Mikro dan Menengah (UMKM): Perlukah?, Jurnal Akuntansi AKUNESA, Vol. 12, Iss. 3, pp. 331-337.
Huston, Sandra J. (2010), Measuring Financial Literacy, Journal of Consumer Affairs, Vol. 44, Iss. 2, pp. 296-316.
Ikatan Akuntan Indonesia. (2018), Standar Akuntansi Keuangan Entitas Mikro, Kecil, dan Menengah (SAK EMKM), Dewan Standar Akuntansi Keuangan, Jakarta.
Lusardi, Annamaria and Mitchell, Olivia S. (2014), The Economic Importance of Financial Literacy: Theory and Evidence, Journal of Economic Literature, Vol. 52, Iss. 1, pp. 5-44.
Maulana, Ahmad and Widiyanto, Agus. (2024), Financial Literacy, Accounting Competence, and the Adoption of SAK EMKM among Small Businesses, Jurnal Ekonomi dan Bisnis Indonesia, Vol. 39, Iss. 2, pp. 150-168.
Nurhasimah, Ayu and Pratama, Fajar. (2023), Financial Literacy and Business Performance of Small Enterprises, International Journal of Economics and Management Studies, Vol. 10, Iss. 4, pp. 21-31.
Pautz, Michelle C. and Wamsley, Christopher S. (2012), Understanding the Theoretical Underpinnings of Compliance Theory: Implications for Public Management, Public Integrity, Vol. 14, Iss. 1, pp. 41-56.
Putri, Eka and Santoso, Dedi. (2022), Penerapan SAK EMKM terhadap Transparansi Keuangan pada Usaha Kecil Menengah, Jurnal Akuntansi dan Keuangan, Vol. 14, Iss. 2, pp. 112-126.
Rahman, Satria, Setyowati, Lilis and Wibowo, Denny. (2023), Adopsi Teknologi Akuntansi pada UMKM di Indonesia, Jurnal Ilmiah Ekonomi dan Bisnis Asia, Vol. 7, Iss. 1, pp. 72-82.
Romney, Marshall B. and Steinbart, Paul J. (2018), Accounting Information Systems (14th ed.), Pearson Education, Harlow, UK.
Susanti, Ayu, Wibisono, Eko and Prasetyo, Agung. (2023), Factors Influencing the Quality of Financial Statements among MSMEs, International Journal of Business and Applied Economics, Vol. 15, Iss. 2, pp. 77-90.
Suryani, Fitri and Lestari, Dewi. (2023), The Role of Digital Financial Applications in Improving MSME Bookkeeping Accuracy, International Journal of Accounting Research, Vol. 11, Iss. 2, pp. 22-34.
Wulandari, Sri and Ramadhan, Fikri. (2022), Determinants of Financial Reporting Compliance among Indonesian MSMEs, Asia Pacific Journal of Accounting and Finance, Vol. 6, Iss. 2, pp. 89-103.
Yunita, Endang, Hadi, Sulton and Sari, Melati. (2024), Pengaruh Literasi dan Kompetensi Akuntansi terhadap Kualitas Laporan UMKM, Jurnal Akuntansi dan Audit Indonesia, Vol. 28, Iss. 1, pp. 15-27.
Zainuddin, Ali and Hasanah, Nurul. (2024), Technology Readiness and Its Impact on MSME Adoption of Digital Accounting Systems, Journal of Digital Economy and Accounting, Vol. 4, Iss. 1, pp. 1-15.
Prema S. (2021). A Decisive Role Played By Language in the Arena of Marketing and Advertisement: An Exploration of Ubiquitous Element, Asian Journal of Management, Entrepreneurship and Social Science, Vol. 1, Iss. 1, pp. 17-24.
Ghauri, P.N. (1986), Guidelines For International Business Negotiations, International Marketing Review, Vol. 3, No. 3, pp. 72-82.
Jeswald W. Salacuse. (2003), The Global Negotiator, Palgrave MacMillan.
Musa. Faridah. (2011), Negotiation skills: Teachers’ Feedback as Input Strategy, Procedia Social and Behavioral Sciences, Vol. 59, pp. 221-226.
P.J. Fos. (1991), A Method of Teaching Negotiating Skill, J Health Adm Educ. Vol. 9, Iss. 3, pp. 289-305.
Reardon, Kelly Kathleen. (1994), Starting our Right: Negotiation Lessons for Domestic and Cross-Cultural Business Alliances, Business Horizons, Vol. 37, Iss. 1, pp. 71-79.
Salacuse, Jeswald. (1991), Making Deals in Strange Places: A Beginner's Guide to International Business Negotiations, Negotiation Theory, and Practice. Eds. J. William Breslin and Jeffrey Z. Rubin. Cambridge, MA: The Program on Negotiation at Harvard Law School, pp. 251-260.