The Effect of Accounting Understanding and Business Size on the Preparation of MSME Financial Statements Based on SAK EMKM with Educational Level as a Moderating Variable

Abstract

This study examines the effect of accounting understanding and business size on the preparation of micro, small, and medium enterprise (MSME) financial statements based on the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM), with educational level as a moderating variable. A quantitative survey was conducted among 94 MSME owners in Kuningan Barat, Mampang Prapatan, South Jakarta, who had performed financial recording. Data were collected through questionnaires and analyzed using multiple linear regression and moderated regression analysis (MRA). The instrument met validity and reliability requirements, and the regression model passed normality, multicollinearity, and heteroskedasticity tests. Accounting understanding has a positive and significant effect on SAK EMKM-based financial statement preparation (p = 0.0008). Business size has a positive but insignificant effect (p = 0.8631). Educational level does not moderate the effect of accounting understanding (p = 0.2055) or business size (p = 0.8198). The moderated model explains 84.4% of the variation in financial statement preparation. The findings indicate that practical accounting competence is more consequential than formal educational attainment or business scale. Training and continuing assistance should therefore emphasize transaction evidence, recording practice, and the preparation of complete SAK EMKM statements.