Implementation Of SAK EMKM-Based Financial Reporting In An MSME: A Case Study Of The Fourtoena

Abstract

This study examines the implementation of Financial Accounting Standards for Micro, Small, and Medium Enterprises (SAK EMKM) in the Fourtoena Shop MSME, located in East Jakarta. Using a qualitative case study approach, data were collected through in-depth interviews with the owners, direct observation, and analysis of financial documents covering the period January–May 2025. Findings reveal that although the owners have a basic accounting background, their understanding and application of SAK EMKM remain limited. Financial records are kept simply, primarily involving cash inflows, outflows, and a rudimentary income statement, without preparing a formal balance sheet or notes to the financial statements. Separation of personal and business assets has been applied, and routine profit and loss recording is conducted, reflecting partial compliance with SAK EMKM. The study highlights gaps in accounting literacy, lack of formal training, and limited access to information as primary obstacles to full compliance. Recommendations include intensive SAK EMKM training, socialization programs, and the adoption of digital accounting applications to standardize financial reporting. Implementing these measures is expected to enhance financial transparency, support access to financing, and strengthen the sustainable development of MSMEs. This research contributes to understanding the challenges faced by small retail businesses in adhering to formal accounting standards in Indonesia.