Level of Urgency for the Application of Integrated Financial and Tax Reports for MSME Actors: A Cost and Benefit Analysis Approach

Abstract

This study aims to analyze the urgency of applying integrated financial and tax reports for MSME actors, using a cost and benefit analysis approach. The data used in this study is primary data. This study distributed questionnaires to 109 MSMEs in Indonesia. The data obtained were then analyzed using descriptive qualitative research methods. The results show that respondents' perceptions of MSMEs' benefits of using financial statements and taxes will be greater than the costs. Therefore, recommendations for making integrated financial and tax reporting applications can be urgently applied among MSMEs. Besides, the benefit analysis results with the most significant score is that MSMEs can make financial and tax reports on time. The application can find out the latest conditions of developments. Meanwhile, in terms of costs, the application requires quite a lot of expenses due to the use of the internet and the initial expenditure for purchasing mobile phones, applications if it is paid and other costs.