Transformation of UMKM Accounting Practices through Education and Guidance on Private Entity Financial Accounting Standards (SAK EP)

Abstract

According to the Ministry of Cooperatives and SMEs (2024), MSMEs are crucial to the Indonesian economy because they absorb labor and contribute significantly to GDP. Data collected by the Ministry of Cooperatives and SMEs in 2024 shows that the number of MSMEs in Indonesia reached more than 65 million units and is spread across various industries, ranging from digital technology and culinary to fashion. The Private Entity Financial Accounting Standards (SAK EP), approved by the Financial Accounting Standards Board of the Indonesian Institute of Accountants (DSAK IAI) on June 30, 2021, will be effective starting January 1, 2025, replacing SAK ETAP and disallowing the application of SAK EMKM. This condition requires Micro, Small, and Medium Enterprises (MSMEs) to adjust the preparation of financial reports to the latest standards. This community service activity aims to improve the knowledge, understanding, and skills of MSMEs in preparing SAK EP-based financial reports through training and mentoring. The implementation method includes needs identification, material delivery, direct practice, and evaluation through pre- and post-tests. The activity involved 30 MSMEs, members of the JAWARA Depok Community. The results showed a significant increase in understanding, with the majority of participants, who previously had limited knowledge of accounting basics, now able to prepare simple financial reports in accordance with SAK EP. This activity is expected to contribute to improving the accountability of MSME financial reports and facilitating access to financing from financial institutions.