How to Prepare MSMES Financial Reports?

Abstract

Companies including MSMEs need to prepare financial reports to determine their financial position and business performance. Currently, there are still many MSMEs in Indonesia that have not prepared financial reports especially the micro-scale businesses. This study aimed to describe the preparation of MSMEs financial reports. This study used a qualitative research design with a case study method on the walnut dodol business in the city of Manado. The data were collected through in-depth interviews with business owners, document observations, and literature studies. Data analysis was carried out with the stages of data reduction, data presentation, and drawing conclusions on the preparation of MSME financial reports. The results of the study showed that to prepare financial statements, it is necessary to identify MSME business activities and financial transactions. Next, the researcher identified the accounts related to these financial transactions. The identification results were used to classify and describe the elements of financial statements. The elements of financial statements include assets, equity, income, and expenses. The description of the elements in the MSME financial position report includes cash, trade receivables, supplies of raw materials (palm sugar, coconut milk, spices, flour, walnuts), supplies of auxiliary materials (shells, woka leaves, and mica) and owner's capital. The income statement includes net income from dodol sales and operating costs such as raw material costs, auxiliary materials costs, transportation costs, electricity costs and salary costs.