Factors Affecting the Quality Financial Statement of Badan Usaha Milik Desa (Bumdes)

Abstract

Effective and efficient financial management plays an important role in the sustainability of BUMDes (village-owned enterprises). Unfortunately, most of BUMDes financial statements quality vary and not in accordance with the standards. As a result, BUMDes does not run well as it should. This study aims to identify factors causing a different level of quality of financial statements and is conducted using descriptive and verification methods. The population of this research is 150 BUMDes and it applies Slovin's formula sampling technique to obtain 109 BUMDes research samples spread in various villages in Majalengka Regency, West Java Province, Indonesia. Data analysis tools used are research instrument test, classical assumptions, correlations, determination, and hypothesis testing. The results show that the use of information systems, the understanding of accounting standards, and the role of assistance/companion have a significant effect both partially and simultaneously on the quality of financial statements with contributions of 77%.