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This article provides a summary of the notes on the financial statements of Toko Alfath based on the application of the Financial Accounting Standards for Micro, Small, and Medium-sized Entities (SAK EMKM). Toko Alfath is a micro, small, and medium-sized enterprise engaged in commerce. The financial statements are prepared in compliance with the SAK EMKM guidelines and include information regarding the general aspects of the entity, accounting policies, and explanations of the accounts in the Statement of Financial Position and Statement of Profit or Loss for SMEs. The analysis reveals several significant changes in the company's assets and liabilities. This abstract concludes with recommendations based on these findings to aid in decision-making and improve financial management at Toko Alfath.
MSMEs have an important role in Pontianak's economy. They are able to absorb local labor and provide employment opportunities for local people. In this case, MSMEs contribute positively to regional economic growth and reduction of the unemployment rate. In addition, MSMEs also play a role in increasing the per capita income of people in Pontianak [1]. With the existence of micro, small and medium enterprises, people can earn additional income and improve their welfare. MSMEs help reduce economic disparities between regions in Pontianak by providing opportunities for the community to be involved in economic activities. MSMEs in Pontianak are also diverse in their types of business. They are engaged in sectors such as food and beverage, fashion and textiles, handicrafts, services, agriculture, tourism, and creative sectors. With this diversification, MSMEs create diversity in Pontianak's economy and provide more choices for consumers [2].
The Pontianak government has made various efforts to support and develop MSMEs in the area. Programs such as entrepreneurship training, business mentoring, and providing access to financing have been launched to assist MSMEs in improving their skills and capacity. Despite facing challenges, MSMEs in Pontianak have great growth potential. With better access to financing, training, and markets, MSMEs can develop into more resilient and competitive business people [3]. Toko Alfath Pontianak, as a Small and Medium Enterprise (SME), is also affected by changes in the implementation of Financial Accounting Standards for Small, Micro, and Medium Entities (SAK-EMKM). SAK-EMKM is a statement of Financial Accounting Standards (PSAK) prepared by the Standards Board of the Indonesian Institute of Accountants (DSAK IAI) and applies to entities with certain criteria, including SMEs [4].
Initially, many SMEs in Indonesia, including Toko Alfath Pontianak, faced obstacles in making and compiling financial statements in accordance with the applicable SAK. Therefore, IAI developed SAK-EMKM in mid-2015 to provide simpler guidance for SMEs that have not been able to implement SAK completely. Since the enactment of SAK-EMKM in January 2018, SMEs, including Toko Alfath Pontianak, are required to present financial statements in accordance with applicable accounting standards. However, a complex understanding of the accounting cycle often makes SMEs less disciplined in recording financial transactions. The learning process in accounting science requires a gradual understanding in accordance with applicable procedures. This can be a challenge for SMEs, including Toko Alfath Pontianak, because everyone has different abilities in learning accounting [5].
Implementing SAK-EMKM at Alfath Pontianak Store requires efforts in understanding and implementing appropriate accounting procedures. Although learning accounting can take time, success in implementing SAK-EMKM will help SMEs such as Toko Alfath Pontianak in obtaining more structured and informative financial statements. Financial statements that conform to applicable accounting standards can also provide confidence for outside parties, such as investors and financial institutions, and help in making better business decisions.
In the context of Toko Alfath Pontianak, the application of SAK-EMKM will assist in preparing financial statements that meet the requirements of applicable accounting standards. In addition, it is important for Alfath Pontianak Store owners and managers to improve their understanding of SAK-EMKM through training and mentoring provided by related parties. This support will help SMEs in overcoming the obstacles they may face in implementing SAK-EMKM and improve their financial management effectively.
Therefore, researchers are interested in raising a research topic entitled "Application of SAK-EMKM in Small and Medium Enterprises of Alfath Pontianak Stores" which aims to investigate and analyze the application of Financial Accounting Standards for Small, Micro, and Medium Entities (SAK-EMKM) in small and medium enterprises of Alfath Pontianak Stores. In addition, this study also aims to understand the extent to which Toko Alfath Pontianak has implemented SAK-EMKM in recording and reporting financial transactions as well as to evaluate the benefits and challenges faced in implementing SAK-EMKM and provide recommendations or solutions that can help Toko Alfath Pontianak in improving their effectiveness and compliance with SAK-EMKM in managing their business finances.
This research was conducted on MSMEs Toko Alfath Pontianak, a small and medium enterprise engaged in the trade sector. Alfath Pontianak store is located in Pontianak City. The research method used is a quantitative research approach using mathematical calculations such as formulas contained in the Financial Statements in accordance with the Financial Accounting Standards of Small, Micro, and Medium Entities (SAK-EMKM) (Table 1-2).
Table 1: Financial Position Statement Formula
STATEMENT OF FINANCIAL POSITION | (in Rupiah) |
ACCOUNT | 2023 |
ASSETS | |
Cash | Xxx |
Bank | Xxx |
Accounts receivable | Xxx |
Finished goods inventory | Xxx |
Inventory of raw materials | Xxx |
AMOUNT OF ASSETS | Xxx |
LIABILITY | |
Accounts payable | Xxx |
Bank Debt | Xxx |
AMOUNT OF LIABILITIES | Xxx |
EQUITY | |
Capital | Xxx |
Retained Earnings | Xxx |
AMOUNT OF EQUITY | Xxx |
TOTAL LIABILITIES AND EQUITY | Xxx |
Table 2: Income Statement Formula
FINANCIAL STATEMENTS | ||
Income | ||
Operating Income | Xxx | Xxx |
Net income | Xxx | Xxx |
Total revenue | Xxx | Xxx |
Operating expenses | ||
Cost of goods sold | Xxx | Xxx |
Sales expenses | Xxx | Xxx |
administrative burden | Xxx | Xxx |
Net profit | Xxx | Xxx |
Research Results
Based on the results of observations, interviews and documentation analysis related to the preparation of financial statements in one of the MSMEs in Pontianak, which is located at Toko Alfath in carrying out its operational activities, an interview with Hendra Rizaldi as the owner can be obtained as in Table 3.
MSME Financial Statements in accordance with the Financial Accounting Standards of Micro, Small and Medium Entities (SAK EMKM) have an important role for these entities. This Financial Statement provides convenience for internal and external decision makers in making decisions, especially for creditors who plan to provide credit for company capital. According to SAK EMKM, MSMEs that have met the sales turnover requirements can apply for credit to banking institutions by presenting Financial Statements in accordance with SAK EMKM as of January 1, 2018. In other words, starting January 1, 2018, if MSMEs want to obtain credit to increase their capital, they are required to present financial statements in accordance with the provisions in SAK EMKM.
Table 3: Interview with Hendra Rizaldi as the Owner
No. | Researcher Questions | Owner's Answer | Researcher's Perception |
1 | Mr. Hendra, can you pleasebriefly explain the background of building a business that you are currently running? | This business was opened before I resigned from Bank BNI in February 2018, initially only selling eggs. The following year it became a 3kg LPG gas base and previously I had also become a 5.5kg and 12kg non-subsidized gas agent. Intending to develop a business, I invited my sister to become a business partner by setting up a shop and then opening a drinking water depot from the local mountains to be sold to MSMEs and households with a pick-up or delivery system, continuing to add basic food ingredients such as sugar, flour, and so on until the business is still running today. From the previous one, this business was only alone with myself who intervened, now I have 3 employees who work according to their jobdesk. My goal in building this business is not only to seek sustenance, but also to pay zakat. | The researcher's perception of the business that has been built by Pak Hen since 2018 until now is very positive. Pak Hen has experience in running a previous business by selling eggs and being a non-subsidized gas agent. Then, Pak Hendra expanded his business by setting up shop and opening a drinking water depot from the local mountains. In addition, the owner has also added basic food products such as sugar, flour, and so on. In addition, the researcher's perception of Mr. Hendra's efforts shows good adaptability and development. By involving his younger brother as a business partner and adding employees as needed, Pak Hendra has succeeded in expanding business reach and improving operational efficiency.
|
2 | By building this business, how far do you understand the financial accounting standards for preparing financial statements? | I don't really understand so much detail about financial reporting according to accounting standards, especially SAK EMKM. Therefore, in recording store finances, I only make financial statements simply according to my own understanding so as not to be complicated having to enter the name of this account account every day, it makes it easier for me to compile reports as long as the income and expense costs are recorded is enough for me. | Although a simple approach to financial recording can make it easier to compile reports, it is important to remember that the reliability and accuracy of financial information is also very important. Financial Accounting Standards for Micro, Small and Medium Entities (SAK EMKM) provide guidance and frameworks that help ensure financial statements are accurate and trustworthy. In the long run, understanding applicable accounting standards can provide greater benefits in managing company finances. |
3 | Is there a special bookkeeping officer? Then, how is the preparation and preparation of Financial Statements at the Alfath store?
| There is no special employee, only I do the bookkeeping myself. In a day of sales, the night I immediately recorded the income, expenses and profits I got to excel in the form of simple financial statements. Initially, the notes were in the form of manual writings that both I and the employees recorded. For example, today the sales of gallons taken, how much it sells. Then how many gallons, gas and eggs per tray are delivered. That's all included with delivery fees. I always enter those daily details into excel | The bookkeeping method that Mr. Hendra does as a business owner that does not involve special employees has practicality and efficiency in managing Mr. Hendra's business finances. By directly recording every income, expense, and profit into Excel, you can easily create simple financial statements. This approach gives you full control over financial records and allows you to better monitor and control every transaction. However, keep in mind that not involving special employees in bookkeeping also has limitations. Time and resource constraints can affect the accuracy and reliability of record keeping, especially as the business grows. In addition, considering the development of a record-keeping system involving specialized employees or technology solutions can strengthen internal controls, improve accuracy, and provide higher reliability to financial statements. In the short term, a simple approach can be effective. However, in the long run, consider the possibility of developing a more sophisticated recording system to support business growth more effectively and efficiently. |
4 | What are your future plans regarding the preparation of your store's Financial Statements? Do you have plans to update the report form if you expand the store?
| I don't want to be grandiose, I don't really pursue to enlarge this business, just want to increase the network by becoming agents in other places. I think the business that I am running is enough, so that the form of financial statements is still the same as the model as I use now. | Mr. Hendra aims not to expand his business and remain focused on adding agent networks elsewhere. This approach is in accordance with Mr. Hendra's vision and needs. By maintaining a sufficient business size, Mr. Hendra can be more effective in managing existing resources and providing good service to customers. Even if you don't plan to expand your business, it's important to keep accurate and regular financial records. In developing an agent network, flexibility and adaptability are also required. Mr. Hendra needs to consider the need for more detailed financial statements if involved in cooperation with agents. By considering logistics, marketing, and customer support aspects, Mr. Hendra was able to develop an agent network effectively. |
5 | For now, how do you find out the profit/profit or loss in your shop?
| Because it has been calculated correctly, I know how much the goods I sell for, whether the loss is large or not. If it's just a small loss, I never count it. Because like the original intention, my goal in opening a business other than profit is zakat. What is the meaning of doing business if our zakat is neglected | Mr. Hendra's approach of properly considering the advantages and disadvantages of his business shows a good awareness of the importance of achieving a balance between financial aspects and religious values. By prioritizing the purpose of paying zakat, Mr. Hendra shows commitment in conducting business ethically and morally. Mr. Hendra explained that his initial intention in opening a business was to do business with the aim of zakat. By not neglecting the obligation of zakat, Mr. Hendra ensures that his original intention and purpose are maintained. This shows integrity and consistency in conducting business with religious principles being the main foundation. |
6 | For depreciation of equipment, shops and others, is there a record of the decline in economic value, sir? Such as business support vehicles (motorbikes and tosa to deliver goods).
| For that, yes, there must be. The cost of gasoline, such service, I have calculated according to the quality of the vehicle itself, it's just that depreciation like this is not specified, but it is still calculated as depreciation.
| Mr. Hendra takes into account operational costs, such as gasoline and vehicle service costs, according to the quality of the vehicle and its business needs. By doing accurate calculations, Mr. Hendra can have a clear picture of how much expenses are related to his business operations. This allows you to manage resources and budgets more efficiently. Although Mr. Hendra does not specialize in depreciation costs, he still calculates them as part of operational costs. This approach reflects your awareness of the importance of accounting for depreciation as an expense relating to your business assets, including vehicles. By recognizing depreciation as an expense, you can allocate funds for future maintenance and replacement of the vehicle. |
Source: Owner of MSME Alfath’s Store
Factors that Become Obstacles
Many MSMEs have limited knowledge in accounting and limited understanding of SAK EMKM. This can make it difficult for MSMEs to prepare financial statements in accordance with established standards. This limited knowledge may be due to lack of formal training or education in accounting. MSMEs often have limited teams and may not have employees who have adequate accounting knowledge and skills. The lack of accounting experts can be an obstacle in preparing financial statements in accordance with SAK EMKM. This may result in errors or inaccuracies in the presentation of financial statements. MSMEs usually face limited time and costs in running their business. The preparation of financial statements in accordance with SAK EMKM requires sufficient time and resources. MSMEs may have difficulty in allocating sufficient time and costs to prepare financial statements in accordance with applicable standards.
The complex accounting regulations and reporting requirements regulated by SAK EMKM can seem complicated and difficult to understand for MSMEs that do not have special knowledge in accounting. This can make it difficult for MSMEs to meet the requirements set by SAK EMKM. Some MSMEs may face obstacles in using accounting software that is compliant with EMKM SAK due to technological infrastructure limitations. Lack of access to an adequate accounting system can hinder MSMEs in presenting financial statements in accordance with applicable standards.
To overcome these obstacles, a comprehensive effort is needed. MSMEs need to improve accounting knowledge and understanding of SAK EMKM through relevant training or education. They should also consider procuring human resources who have expertise in accounting. In addition, adequate allocation of time and costs must be prioritized to prepare financial statements accordingly. Adequate technology infrastructure must also be considered so that MSMEs can use accounting software that is in accordance with SAK EMKM. Support from related parties, such as the government, financial institutions, and educational institutions, can also help MSMEs in understanding and meeting the requirements of SAK EMKM in presenting financial statements.
Based on the results of interviews that have been conducted by researchers to Mr. Hendra as the manager of Alfath Store, several findings have been shown related to the discussion of the study. The following are the results of the discussion taken from the interview:
Understanding of financial accounting standards: Respondents stated that they did not have a deep understanding of accounting standards, including SAK EMKM. Therefore, he compiles financial statements simply according to his own understanding to make it easier and less confusing. This shows that there are limitations in understanding of applicable accounting requirements and principles
Preparation and preparation of financial statements: Respondents manage and do their own bookkeeping without special employees. He records income, expenses, and profits on a daily basis using Microsoft Excel. Initially, recording was done manually, but now it has switched to an electronic format. Although financial statements are prepared simply, but record daily details regularly
Future plans regarding financial statements: Respondents have no plans to change or update the store's financial statement form if it expands its business. He focused more on developing the network by becoming an agent elsewhere, rather than significantly enlarging the effort
Knowledge of gains and losses: Respondents have a good understanding of the goods they sell, including how much they sell and whether there are significant losses. However, if the loss is only small, he does not calculate it in detail. The main purpose of respondents in doing business is to pay zakat, not solely to seek financial benefits
Depreciation recording: Respondents are aware of the need to calculate depreciation on equipment such as business support vehicles. Although there is no specific record keeping for depreciation, it still takes into account the cost of gasoline, servicing, and the quality of the vehicle itself in calculating depreciation
The results of this discussion show that respondents have an awareness of the importance of financial records, albeit modestly, and place zakat payment as the main goal in doing business. However, there is also a limited understanding of applicable accounting standards and the potential for future business expansion. Therefore, efforts are needed to increase understanding of accounting and improve the management of financial statements in accordance with applicable standards.
Statement of Financial Position
Based on the data that researchers have obtained from Toko Alfath, we can see in the Table 4.
Based on the Statement of Financial Position above, there are several changes that can be observed in the company's assets and liabilities. On the asset side, there are some significant changes. The amount of cash decreased from the previous year, indicating that there is use of cash for operational purposes or other investments. There was no bank balance in the current year, indicating that the company had no bank balance at the time the report was prepared. There is no trade receivable balance in the current year, which means that the company has no receivables from other parties. However, there was an increase in the number of finished goods inventories and raw material inventories compared to the previous year. This indicates an increase in the stock of ready-to-sell goods and raw materials for production, which may be related to business development efforts in the following year.
On the liability side, there was an increase in the amount of trade payable compared to the previous year. This indicates an increase in debt to other parties in operational activities. Meanwhile, on the equity side, the company's capital amount remained the same as the previous year. However, there was a decrease in the company's profit balance from the previous year. This decrease indicates the use of part of the profit for other purposes, such as business development or distribution of profits to owners.
Although the statement of financial position provides information about changes in the company's assets and liabilities, there is no direct information to support statements about the increase in company profits or the use of profits to increase current assets as mentioned in the study. Therefore, the information contained in this statement of financial position does not directly support the statement regarding the factors causing the increase in assets and liabilities mentioned in the study.
Table 4: Statement of financial position
STATEMENT OF FINANCIAL POSITION | (in Rupiah) |
ACCOUNT | 2023 |
ASSETS | |
Cash | IDR 64,364,500 |
Bank | - |
Accounts receivable | - |
Finished goods inventory | IDR 1,523,000 |
Inventory of raw materials | IDR 7,175,000 |
AMOUNT OF ASSETS | IDR 73,062,500 |
LIABILITY | |
Accounts payable | IDR 6,300,000 |
Bank Debt | - |
AMOUNT OF LIABILITIES | IDR 6,300,000 |
EQUITY | |
Capital | IDR 64,364,500 |
Retained Earnings | IDR 92,660,000 |
AMOUNT OF EQUITY | IDR 28,295,500 |
TOTAL LIABILITIES AND EQUITY | IDR 21,995,500 |
Source: Toko Alfath Financial Report 2023
Based on the financial statements provided, there are several relevant pieces of information regarding the company's income and operating expenses. The company's operating revenue reached Rp 83,962,000, which is the total income earned from its business activities. The net income of the company, after deducting operating expenses, amounted to Rp 19,597,500. This is the profit generated from the operating revenue after subtracting all expenses related to the company's operations. Total revenue reflects the overall amount of income earned from various sources during the period described in the financial statements.
Operating expenses consist of several components. Cost of goods sold, which amounted to Rp 64,364,500, represents the production and procurement costs of the goods sold by the company. Selling expenses, amounting to Rp 8,698,000, include costs related to sales efforts such as advertising, promotion, and sales commissions. Administrative expenses, amounting to Rp 6,300,000, include administrative costs related to the management and operation of the company. Taking into account operating revenue and operating expenses, the company achieved a net profit of Rp 21,995,500. This net profit is the remaining income after all expenses have been deducted. The information contained in the financial statement table provides an overview of the company's financial performance in the stated period. Operating revenue, operating expenses, and net profit are essential components in evaluating the company's financial performance (Table 5).
Table 5: Financial Statements
Income | |||
Operating Income | IDR 83,962,000 |
| |
Net income | IDR 19,597,500 |
| |
Total revenue | IDR 83,962,000 | ||
Operating expenses | |||
Cost of goods sold | IDR 64,364,500 |
| |
Sales expenses | IDR 8,698,000 |
| |
Administrative burden | IDR 6,300,000 |
| |
| IDR 61,966,500 | ||
Net profit |
|
| IDR 21,995,500 |
Source: Toko Alfath Financial Report 2023
Notes to the Financial Statements
The notes to the financial statements for Toko Alfath, prepared in accordance with the standards of the Indonesian Financial Accounting Standards for Micro, Small, and Medium-sized Entities (SAK EMKM), include several important points as follows:
General: Toko Alfath was established in 2018, starting with selling eggs. The company is located at HM Suwignyo No. 11, Pontianak, West Kalimantan, engaged in the trading business, specifically a grocery store. Toko Alfath qualifies as a Micro, Small, and Medium-sized Entity according to SAK EMKM
Summary of Accounting Policies
Statement of Compliance: The Financial Statements of Toko Alfath are prepared in compliance with the applicable standards and principles of SAK EMKM in Indonesia
Basis of Preparation: The Financial Statements of Toko Alfath are prepared based on historical cost, with the presentation in Indonesian Rupiah
Inventory: Toko Alfath's inventory, including raw materials, supplies, and packaging materials, is recorded based on the cost of purchased goods until they arrive at the location. Conversion costs, such as direct labor and factory overhead costs, are also recorde
Fixed Assets: The value of Toko Alfath's fixed assets is recorded as the entire cost incurred to acquire them until the assets are ready for use. The depreciation method used is the straight-line method with no residual value
Revenue and Expenses: Toko Alfath recognizes revenue when the sales transaction occurs. Expenses are recognized when the costs are incurred
Income Tax: The income tax payable by Toko Alfath is based on the taxation regulations set by the Indonesian Government
CASH: 2023 2022
Cash - Rupiah Rp 64,364,500 Rp 139,006,671
Cash is a current asset account owned by Toko Alfath, presented in Indonesian Rupiah
Inventory: The explanation of the inventory account and other account explanations are as described in the cash account explanation above
Based on the notes to the financial statements for Toko Alfath, which are prepared in accordance with the Indonesian Financial Accounting Standards for Micro, Small, and Medium-sized Entities (SAK EMKM), several important points can be summarized:
Toko Alfath is a micro, small and medium-sized enterprise engaged in the trading of groceries. The company is located at HM Suwignyo No. 11, Pontianak, West Kalimantan, and was established in 2018
The Financial Statements of Toko Alfath are prepared in compliance with the standards and principles of SAK EMKM in Indonesia. The basic principle of preparing financial statements is based on historical cost with presentation in Indonesian Rupiah
Toko Alfath applies relevant accounting policies, including those related to the recording of inventory, fixed assets, revenue, expenses, and income tax
In the Balance Sheet, it is evident that the amount of cash in 2023 is Rp 64,364,500, experiencing a decrease compared to the previous year (2022) of Rp 139,006,671. Meanwhile, finished goods inventory in 2023 amounts to Rp 1,523,000, showing an increase from the previous year
Suggestions
Based on the information provided in the notes to the financial statements for Toko Alfath, here are some suggestions that can be given:
Cash Management: Pay close attention to cash management to reduce the decrease in cash from year to year. Evaluate the policy of cash usage for operational purposes or other investments to ensure the sustainability and growth of the business
Inventory Management: Pay attention to the management of finished goods inventory more effectively. Evaluate the need for raw material inventory and strive to optimize stock levels to avoid excess or shortage of inventory
Increase Revenue: Review sales and marketing strategies to increase business revenue. Identify new market opportunities, expand distribution networks, or enhance product promotion to attract new customers and retain existing ones
Debt Management: Pay attention to business debt management properly. Evaluate the policy of using debt to other parties and ensure sound financial management to avoid risks associated with debt
Use of Profit: Use company profits wisely. Plan the use of profits to support business growth, such as business development or distributing profits to owners in a balanced manner
Tax Monitoring: Ensure compliance with the taxation regulations set by the Indonesian Government. Monitor and prepare for income tax obligations periodically
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