Microenterprises, small enterprises, and medium-sized enterprises (MSMEs) are vital to the economic growth of Indonesia, contributing significantly to employment and national stability. However, many MSMEs struggle with financial management, hindering their growth and access to financing. The implementation of the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM) was introduced to simplify financial reporting for MSMEs. This study explores the adoption of SAK EMKM at Mutiara Laundry, a case study MSME, to assess its effect on financial transparency, decision-making, and access to external funding. The research highlights challenges such as limited financial literacy and reliance on informal accounting methods. The findings suggest that implementing SAK EMKM enhances financial management and facilitates financing opportunities. The study recommends improving financial literacy and utilizing digital tools to support MSMEs. This research contributes to the understanding of how SAK EMKM can aid MSMEs in improving financial management and long-term sustainability. Practical Implications: The findings of this study highlight that implementing financial statements based on SAK EMKM can significantly enhance the financial management capabilities of micro and small enterprises, such as Mutiara Laundry UMKM. Proper adoption enables business owners to maintain accurate and standardized records, making it easier to monitor performance, control costs, and plan for growth. It also enhances credibility with financial institutions, increasing opportunities for obtaining loans or investments. Social Implications: The adoption of SAK EMKM in micro and small enterprises like Mutiara Laundry UMKM fosters broader social benefits beyond individual business performance. Standardized and transparent financial reporting fosters trust among MSMEs, customers, suppliers, and financial institutions, thereby contributing to the development of stronger local economic ecosystems. Improved financial literacy among small business owners empowers them to make better decisions, sustain their operations, and create more stable employment opportunities in the community. Originality/Value: This study offers a practical contribution by examining the implementation of financial statements based on SAK EMKM in a real-world microenterprise context, using Mutiara Laundry UMKM as a case study. While SAK EMKM is intended to simplify financial reporting for micro, small, and medium enterprises (MSMEs) in Indonesia, empirical research on its adoption in specific service-sector businesses remains scarce.
Idrus et al. (Sat,) studied this question.