ANALYSIS OF THE IMPLEMENTATION OF FINANCIAL ACCOUNTING STANDARDS

FOR ENTITIES WITHOUT PUBLIC ACCOUNTABILITY (SAK-ETAP) ON THE

RECORDING OF FINANCIAL STATEMENTS IN MSMEs IN BULELENG REGENCY
(CASE STUDY AT THE GREEN LAUNDRY SHOP)

Arranged by:
Gede Oka Restu Pratama
Student of Bachelor of Accounting Study Program, Department of Economics, Faculty of Economics
Ganesha University of Education
Email: oka.restu@undiksha.ac.id

Abstract
The development of the MSME sector is one of the characteristics of increasingly stringent business
competition in overall economic development in Indonesia. The development of MSMEs which is
increasingly fast and dynamic also has an impact on the flexibility of recording financial statements
that are owned to provide information on financial performance that has been carried out. The
ratification of SAK-ETAP is intended for MSMEs to facilitate the application of recording financial
statements that are more informative on the financial performance of a business entity. The SAK-ETAP
standard plays a significant role in facilitating MSME players to present more structured financial
statements. This study aims to assess the accounting records carried out by the Green Laundry shop and
aims to understand the importance of implementing SAK-ETAP standards in the ease of providing
information related to the financial performance of business entities. This study used qualitative
research methods. The approach used in this study is a descriptive approach with data collection
techniques through direct observation and interviews. The recording carried out by the Green Laundry
shop still applies a simple recording system that does not use the SAK-ETAP standard so that company
owners still have difficulty knowing the results of the operational financial performance of the business
being carried out.
Keywords: UMKM, Economic Development, SAK-ETAP, Financial Statements
1. Introduction
Currently, Indonesia is planning some significant progress and developments for various sectors,
especially in the economic sector. The economic sector is an important sector in determining the
standard of development and prosperity of a country and the people in it. The development of this
economic sector can be seen in the existence of a very rapid development in the industrial world
which is expressed in the increasing competition that occurs between companies that produce
business products in the form of quality goods or services at competitive prices in an effort to fulfill
consumer tastes. There are also several factors that influence the progress of the development of the
economic sector, namely human resources, natural resources and business activities (Candra, 2016).
The Micro, Small and Medium Enterprises (MSMEs) sector is one type of business that contributes
to competition in the business world, which plays an important role in driving overall economic
development in Indonesia. In addition to contributing to the economy in Indonesia, MSMEs also
provide employment opportunities and open new jobs for the community so that they can reduce the
unemployment rate in Indonesia. In 2022 amid the government's efforts to restore Indonesia's
economic level, the development of MSMEs is the main choice for business development because
MSMEs still have a development pattern that is capable of digitizing to keep up with the times which
is very flexible (Euginia, 2022). MSMEs are considered to be a type of business that naturally
develops more dynamically because it has a simple system and directly impacts the fulfillment of
community needs. Based on data for 2020 from the Ministry of Cooperatives and Small and Medium
Enterprises, it stated that there were 65.47 million micro, small and medium enterprises (MSMEs),
which number had increased by 1.98% compared to 2019. This number reached 99.99% the total
number of businesses in Indonesia, of which 0.01% are large businesses, is only 5,637 business units.
On a micro-economic scale, the number of workers absorbed by the MSME sector reaches 97.8% of
the total number of existing workers. Not only that, the contribution of MSMEs to the national
economy (GDP) is 62.7% and the remaining 37.3% is distributed by large business actors. With these
data it is clear that MSMEs are an important part of economic development planning in order to
achieve the prosperity of its people. The types of businesses operating in Indonesia consist of goods
businesses, service businesses and manufacturing businesses. According to the presentation of the
Ministry of Industry, it was explained that the goods business is a type of business that provides
physical products that are distributed to a buyer and involves a transfer of ownership of the goods
owned. Service business is a type of business that places more emphasis on providing an intangible
product to buyers then manufacturing business is a type of business whose activity is to produce
goods and services.
A business is established to obtain maximum profit in its operations so as to be able to maintain
the stability of economic goals and the continuity of the company itself. Therefore business or
business is always based on the goal of fulfilling maximum profits with effective development and
control within the company. The development of the business and business world in Indonesia has
resulted in intense competition in terms of meeting consumer needs and also related to the
formulation of the financial sector which should receive more attention from each company owner.
A medium that can be used as a basis for making economic decisions in the financial sector is a
financial report. The financial report is a record of the company's financial information in which some
business entities have financial statements as a basis for evaluating the running of the company. Each
part of the financial statements cannot be ignored because a financial report is also used as a reference
for the company's operations in one period.
MSMEs as a type of business that is dynamic and tends to have a level of objectivity where
constant transactions occur require the recording of financial statements in accordance with
accounting. In understanding the application of accounting contains basic business performance
indicators which in accounting records will inform a valid result to information users in the analysis
of financial problems that arise in companies so that they are able to take effective and appropriate
corrective actions so as to be able to improve competent financial management within the company.
Based on this correlation, in order to facilitate and carry out standardization related to the preparation
of financial statements for MSMEs, in 2009, the Financial Accounting Standards Board (DSAK)
passed a standard for preparing financial statements for companies called Financial Accounting
Standards for Entities Without Public Accountability (SAK-ETAP). SAK-ETAP is intended for
entities whose financial statements are not widely available to the public and are usually applied to
small and medium businesses because there is no trading of shares in their business operations. SAK-
ETAP is expected to be able to make it easier for MSMEs to compile and present more informative
financial statements with the aim of making it easier for investors and creditors to know the
company's financial performance and the basis for determining the amount of financing that can be
done. However, in its implementation, financial records carried out by MSMEs are still far from the
SAK-ETAP standard. MSMEs consider that their business is a small business that does not require
standards that are in accordance with SAK-ETAP and chooses to only prepare simple financial
statements. This also occurs in the Green Laundry business, which is an MSME engaged in laundry
services located on Sambangan Street.
Laundry business is a business that has promising prospects in the long term. This business is
classified as a business that offers services that are timeless and are needed by most people. However,
with an increasingly high level of demand, people tend to try their luck in droves by opening a laundry
service at a location where they live or a business location that they consider strategic. All creativity
and innovation is also carried out to maintain competition and meet the offers demanded by
consumers for the continuity of their business. The Green Laundry shop is classified as a laundry
business which is growing quite rapidly as can be seen from the enthusiasm of consumers to make
transactions in this business. With transactions that are quite constant and occur frequently, efficient
financial recording is needed by this business, but the owner does not realize how important financial
records are in accordance with accounting standards in order to facilitate the provision of financial
information and the preparation of financial statements in accordance with business operations. The
owner of the company only keeps records of cash inflows and cash outflows without authorization
which is more absolute and simple in nature by not paying attention to the applicable SAK-ETAP
standard, causing difficulties for business owners in finding and determining the performance of
business operations in one period due to the financial statements prepared does not meet the standards
that should apply.
Based on research conducted by Salmiah (2015) states that almost 83% of MSMEs do not
understand the contents of SAK-ETAP and 70% of businesses have not used the application and are
still using manual recording. Based on these data, it is stated that MSMEs still tend not to understand
the contents of SAK-ETAP properly and choose to record financial transactions manually without
adjusting to applicable standards. Then in research by Ningrum, et al (2019) states that the application
of SAK-ETAP to MSMEs has an effect on business sustainability which the focus of research is on
MSMEs in Yogyakarta. MSMEs that have guidelines for recording their financial statements are said
to have the opportunity to develop their business quantitatively and qualitatively if the financial
statements are stated in accordance with applicable standards and the accuracy of the information is
guaranteed. Then this was also corroborated by the results of research conducted by Pradana (2019)
on UD Karya Tunggal which is a business engaged in the trading business of building needs where
the presentation and disclosure of financial statements is incompatible with the SAK-ETAP rules
based on a lack of understanding of financial owners regarding SAK -ETAP itself and the lack of
awareness of managers regarding the importance of financial statements, causing confusion in the
disclosure of financial performance.
Based on research conducted by Salmiah (2015) states that almost 83% of MSMEs do not
understand the contents of SAK-ETAP and 70% of businesses have not used the application and are
still using manual recording. Based on these data, it is stated that MSMEs still tend not to understand
the contents of SAK-ETAP properly and choose to record financial transactions manually without
adjusting to applicable standards. Then in research by Ningrum, et al (2019) states that the application
of SAK-ETAP to MSMEs has an effect on business sustainability which the focus of research is on
MSMEs in Yogyakarta. MSMEs that have guidelines for recording their financial statements are said
to have the opportunity to develop their business quantitatively and qualitatively if the financial
statements are stated in accordance with applicable standards and the accuracy of the information is
guaranteed. Then this was also corroborated by the results of research conducted by Pradana (2019)
on UD Karya Tunggal which is a business engaged in the trading business of building needs where
the presentation and disclosure of financial statements is incompatible with the SAK-ETAP rules
based on a lack of understanding of financial owners regarding SAK -ETAP itself and the lack of
awareness of managers regarding the importance of financial statements, causing confusion in the
disclosure of financial performance.
The application of financial records at the Green Laundry Shop, which is a type of business that
is currently developing, is the main attraction for researchers to examine its suitability in depth. This
is done so that this type of business is able to become a business that has been operating according
to accounting standards so that business owners are able to assess the performance of their business
properly during a one-year period. In connection with the description above, the problems studied in
this study are 1) What is the form of implementation of accounting at the Green Laundry Shop as one
of the MSMEs in Buleleng? 2) Is the application of accounting at the Green Laundry Shop said to be
in accordance with the generally accepted SAK-ETAP?
2. Literature Review
1. Micro small and Medium Enterprises
According to Law Number 20 of 2008 Article 1 concerning Micro, Small and Medium
Enterprises it is explained that:
- Micro business is a productive business or business entity owned by an individual that meets the
criteria as a micro business as stipulated in Article 6 (1) of the Micro Business Law, in which a
micro business is declared to have a maximum net worth of Rp 50,000,000 excluding land and
buildings and has annual sales of at most Rp 300,000,000.
- Small business is a productive economic business that stands alone and is carried out by
individuals or business entities that are not subsidiaries or branches of companies that are directly
or indirectly owned by medium or large businesses that have met the criteria as small businesses
in accordance with the law. The Small Business Law in Article 6 (2) namely having a net worth
of more than Rp 50,000,000 up to Rp 500,000,000 which does not include land and buildings for
business premises and has annual sales of more than Rp 300,000,000 up to Rp 2,500,000,000.
- Medium business is a productive economic enterprise that stands alone is carried out by
individuals or individuals or business entities that are not in the status of a subsidiary that is
owned, controlled or part of a small business or large business directly or indirectly as stipulated
in the Law on Medium Enterprises Article 6 (3) which has the criteria of having a net worth of
more than Rp 500,000,000 up to a maximum of Rp 10,000,000,000 excluding land and buildings
where the business is located and has annual sales of more than Rp 2,500,000,000 up to Rp
50,000,000,000.
According to M. Tohar (1992) the definition of small business from various aspects is as follows:
- Small entrepreneurs are entrepreneurs who have a maximum net worth of two hundred million
rupiah, excluding land and buildings where the business is located.
- Small entrepreneurs have a total net sales result for a year of at most one billion rupiah.
- Small entrepreneurs are businesses in the form of individuals with legal entities or non-legal
entities which also include cooperatives.
Based on Law Number 1 of 1995 concerning Micro, Small and Medium Enterprises, the
following criteria are:
- Maximum net worth is Rp 200,000,000 excluding land and buildings for business premises.
- Have annual sales of at most Rp 1,000,000,000.
- Business ownership by Indonesian citizens (WNI).
- Established as own business, not a subsidiary or branch of a company owned or controlled by a
large company.
- The form of individual business or legal entity business does not include cooperatives.
- Have total assets of Rp 5,000,000,000 for the industrial sector, as well
- Have a maximum net worth of Rp 600,000,000 and has a maximum sales of Rp 3,000,000,000
in businesses financed for the non-industrial business sector.
2. Financial Statements
The definition of financial statements according to Harahap (2013) is a report that describes
the financial condition and results of a company for a certain period of time. Financial statements
are in the form of reports that contain records of a company's financial information in a certain
period and are used to describe the company's performance situation. According to the Indonesian
Accounting Association (2015) in Financial Accounting Standards (SAK) Number 1 it is stated
that financial statements are part of the process of financial reporting and financial statements
which become a structured presentation of the financial position and financial performance of an
entity. Complete financial statements usually include balance sheets, reports on changes in
capital, income statements, reports on financial changes which consist of cash flow statements,
notes to financial statements.
 According to Hans (2016: 126) it is explained that the purpose of financial statements is to
provide information about the financial position, financial performance and cash flows of entities
that have benefits for users of financial statements in making economic decisions. Financial
statements are a form of accountability from management for the utilization of all resources
within the company to manage a business entity. With this, it states that financial statements have
an important position in a business or business entity with the aim of providing information to
users of financial information on performance and financial position and to be useful for report
users in making several decisions related to common interests.
3. Financial Accounting Standards Without Public Accountability
Financial Accounting Standards Without Public Accountability or SAK-ETAP is a standard
aimed at an entity that does not have significant public accountability but has an obligation to
publish general financial reports for external users. According to Ariefriansyah and Miyosi (2013:
10) explain that SAK-ETAP is an accounting standard used for small to medium scale entities
that do not have a public accountability interest. Then the Indonesian Accounting Association in
the Financial Accounting Standards Book (2014: 1) states that an entity without public
accountability is an entity that does not have significant public accountability but aims to issue
financial reports for the public interest. The standard, which has been used effectively since 2011,
is expected to be able to facilitate MSME entrepreneurs in compiling and issuing more
informative financial reports with the aim of providing convenience for internal and external
report users in terms of making financial decisions. to help business owners know the financial
condition of their business. Thus it can be concluded that SAK-ETAP will be used by small and
medium scale businesses in an effort to provide and present relevant and credible financial reports
for the financial interests of the business being carried out.
4. Purpose of Compilation and Implementation of SAK-ETAP
The preparation and implementation of SAK-ETAP in companies is caused by several
fundamental things within the scope of generally accepted financial standards. According to
Mariani in Paramitha (2021) it is explained that the reason for implementing SAK-ETAP in small
and medium companies is that it is considered that PSAK-IFRS based is difficult to apply in small
and medium companies due to the determination of fair value which tends to require large costs,
PSAK-IFRS standards tend to complicated in its implementation within the company because it
requires individuals or human resources who are qualified in this field and have professional
judgment to assess the principal based within the company. Therefore, SAK-ETAP can be freely
applied by a business entity without public accountability because SAK-ETAP can be carried out
simply by a company in the business development process without any additional financing
related to standard implementation in general. An entity that has significant public accountability
can also use this SAK-ETAP standard if the service authority has the authority to make
regulations that can approve the implementation of the use of SAK-ETAP (Sharif in Paramitha,
2021).
SAK-ETAP has a total of 30 chapters with 182 pages with a total number of pages consisting
of scope related to the concept of the precautionary principle, presentation of financial statements
in the form of balance sheets, income statements, reports on changes in equity, cash flow
statements, and other required reports. owned by a business or business entity. This standard also
contains the eligibility of accounting reporting standards that should be carried out based on the
applicable General SAK.
3. Research Metodology
The location of this research is located at the Green Laundry Shop which is a type of business
that is classified as MSME in the laundry business service sector which was initiated in 2020 which
is located on Jalan Raya Sambangan, Buleleng Regency. The research was conducted within one
week from April 27 to May 3, 2023.
 The research method used in this research is to use a qualitative research method design.
Qualitative method is a research method that is carried out with the aim of understanding the meaning,
interpretation and human memory experience of a social phenomenon. This research is usually
carried out by observation through the collection and analysis of non-numeric data resulting from
collective interviews, participatory observation and document analysis. This method focuses on
exploring or developing understanding and meaning of a social phenomenon that is complex and
difficult to measure with numbers or statistics. According to Zuchri Abdussamad (2021), the
qualitative research method is a method used to examine the condition of natural objects, researchers
act as key research instruments, data collection techniques are carried out by triangulation, data
analysis is deductive in nature and research results tend to be generalizations. This method aims to
obtain a description related to a detailed explanation of the phenomenon under study so as to be able
to contribute to thinking and theory in the field of social science, especially in the field of accounting.
In addition, this method is also used to obtain in-depth data on data that contains real meaning.
The approach used in this study uses a descriptive approach by paying attention to the subject,
object, predicate by utilizing questions collectively related to the research topic used to explain in
detail related to financial recording at the SAK-ETAP-based Green Laundry Shop that has been
implemented. The subjects in this study are the direct owners as well as holders of financial flows in
the business being carried out. The reason for choosing the subject as an informant was because the
subject knew business operations over the past several periods, the subject also knew how cash
inflows and outflows circulated in one business period and the subject was responsible for managing
finances and other information on business operations.
The data collection technique used in this study was to conduct in-depth interviews with
informants accompanied by the submission of a number of collective questions in order to find out
more in-depth information related to the financial records that have been carried out in this service
business. This effort was carried out equipped with a voice recorder to produce valid and accurate
data so as to minimize discrepancies in data analysis and information from informants and as cross-
check material if data or information was found that had not been recorded by the interviewer.
The data in this study were collected through data from primary and secondary sources. The
primary source in question is data obtained from the informant directly in accordance with the
interviews that have been conducted and the secondary data source is data obtained from article
documents, scientific journals and writings that are appropriate to the research problem. The primary
data used in this research is the results of interviews with the owner of the Green Laundry service
company who is responsible for the authorization of the company's operational implementation and
ongoing financial records. Then the secondary data in this study is in the form of supporting
information from company owners in the form of photo documentation and audio recorders as well
as some notes on transactions obtained at the Green Laundry Shop.
This study also includes a data analysis, in which data analysis is the process of organizing and
sorting data into patterns, categories and basic descriptive units in order to obtain themes and places
for problem formulation. The data analysis technique in this study is interactive analysis, adhering to
the analytical method consisting of
- Data collection, collecting data at research locations with interviews and documentation.
- Data reduction, as a process of selecting, focusing, abstracting, transforming tangible data obtained
in the field directly and forwarded at the time of data collection starting from the time the researcher
focused on the research area.
- Presentation of data, as an advanced stage of data analysis where researchers present research
findings in the form of categories and groupings of data obtained from various types, networks,
linkages of activities or tables.
4. Results and Discussion
4.1.Data collection
 In this study, data was obtained by first observing the Green Laundry Shop and analyzing it
related to the running of business operations in order to obtain information and the licensing process
by conducting face-to-face interviews. After making observations, researchers conducted interviews
directly with business owners in more depth to clarify and sharpen the expansion of the information
needed. In the interview process, the researcher asked several questions related to the structure and
categorization of the financial inclusion process which is more specific to this business. In the
interview process, informants tend to understand the questions given so as to facilitate the processing
of data. Informants also have a good attitude and are able to provide clear information on the topics
discussed so that researchers can ask questions that are more collective and structured.
4.2.Data reduction
a. Recording System
Indicator Realization Measuring instrument
The owner keeps records of Keeping financial records SAK-ETAP
financial records and simple but not in accordance
reporting in accounting with SAK-ETAP standards
based on SAK-ETAP.
Table 4.2.1 Recording System
b. Internal Factors The Inability of Green Laundry Stores to Implement SAK-ETAP-Based
Recording and Preparation of Financial Reports
1) Knowledge
Indicator Realization Measuring instrument
Ratification of SAK-ETAP The owner has never seen, SAK-ETAP
as a standard for recording heard, knows and
and reporting finances for understands the form and
MSMEs. process of implementation
in accordance with the SAK-
ETAP standard
Table 4.2.2 Owner Knowledge Factor
2) Competence
Indicator Realization Measuring instrument
There are competent The owner has no SAK-ETAP,
individuals who are able to competence related to Accounting
process data and present standard conformity Professional Ethics
financial reports based on Standards
SAK-ETAP standards.
Table 4.2.3 Competency Factor
3) Mindset and Perspective
Indicator Realization Measuring instrument
The perspective of business The owner believes that this Critical Mindset and
owners on the importance of standard needs to be carried Perspective
recording in accordance out and applied effectively
with SAK-ETAP standards. in the service business
Table 4.2.4 Mindset and Perspective
c. External Factors The Inability of Toko Green Laundry to Implement Financial Recording
and Compilation of SAK-ETAP-Based Financial Reports
1) Socialization and Special Training Related to the Application of SAK-ETAP Standards
 Indicator Realization Measuring instrument
There are special institutions There is no special SAK-ETAP, Successful
that play an active role in institution that conducts Outreach and Special
disseminating the active outreach and provides Training
application of the SAK- outreach to build MSME
ETAP standard for MSME actors' understanding of the
actors as seen from the SAK-ETAP standard
financial reporting process
as well as special institutions
that carry out special
training regarding how the
recording process is in
accordance with applicable
standards.
Table 4.2.5 Socialization and Special Training Regarding the Application of SAK-
ETAP Standards
2) Supervision from the Tax Office (Fiskus).
Indicator Realization Measuring instrument
The tax authorities supervise Fiscal authorities do not take Tax Imposition
MSMEs which have been concrete actions that go Standard
categorized according to directly to the field by
Law No. 2 of 2008 paying attention to the
concerning the MSME running of MSME
Categories that receive the businesses and tax
maximum tax. authorities tend to assess
MSME as small businesses
that only need to pay taxes
on time and have not even
collected data directly on
businesses that are supposed
to pay taxes
Table 4.2.6 Supervision from the Tax Office (Fiskus).
3) Supervision from the Prosecutor's Party of Users of Financial Statements
Indicator Realization Measuring instrument
There are parties who There is no party that acts as SAK-ETAP
demand that financial a claimant as well as a user
reports be provided from the of financial statements that
business owner as a basis for makes the information
decision making and contained in financial
customer satisfaction reports the basis for decision
assessment of the services making
provided by the service
business to customers
Table 4.2.7 Supervision of Financial Report Prosecutors
4.3.Data Presentation
Measuring Realization
Principles/Indicators
instrument Found Not found
 The business owner SAK-ETAP √
records and reports
finances in
accordance with
SAK-ETAP
Ratification of SAK- SAK-ETAP √
ETAP as a standard
that applies to
MSMEs in their
financial records
Competence Accounting √
possessed by MSME Professional Ethics
business actors in Competency
applying recording
standards in
accordance with
SAK-ETAP
The point of view and Critical Mindset and √
mindset of business Perspective
owners regarding the
existence of SAK-
ETAP as a standard
for MSME financial
records
The existence of Socialization and √
special socialization Training Success
and training
institutions for
MSMEs regarding
SAK-ETAP
There is a tax Tax Reporting √
authority that oversees Standards, SAK-
the running of ETAP
MSMEs in
accordance with
accounting standards
and tax reporting
The existence of the SAK-ETAP √
prosecution party
providing informative
financial reports for
decision making
Table 4.3.1 Data Presentation
4.3.1. Green Laundry Store Financial Recording System
Financial records are an important component of evaluating financial performance carried
out by a business entity, especially an MSME. In reality it was stated that not all MSMEs
were able to carry out comprehensive and complete financial records in accordance with the
SAK-ETAP standard, including the Green Laundry Shop which reported that they had made
 financial records every day but in a simple form and had not touched the SAK-ETAP
standard.

"The financial report as described has several parts that must be stated, huh? We are only here
to record the amount of income in a day and then the amount of expenses including the
purchase of necessary shop equipment. Regarding the assets that we have, we can see here,
for the initial purchase price, the total is approximately 25 million for this set. Regarding the
income from the provision of services, it is only recorded in a small bookkeeping using the
notes we have here. As with the use of notes in general, we do that too. But sometimes we
forget where to put the purchase receipt, but all purchases are also recorded in the small
bookkeeping that we have here. If asked whether the profit or loss per day is visible or not, it
is still visible, but the certainty cannot be proven."

It can be seen from the recognition and description given by the business owner, this
business only keeps very simple financial records and tends to seem to ignore the importance
of financial reporting for assessing financial performance. Business owners also indirectly
say that they have difficulty assessing their operational performance. It is clear that the
financial records and financial reporting that apply to the Green Laundry business are still far
from the SAK-ETAP standards.

"In the last few years, even though we only used a simple accounting and financial
reporting record, we were still able to find out how much cash was coming in from the
provision of our services, which can be seen from the small bookkeeping that we did, then
how many services we did for our customers. . It looks like we don't need this standard, but
the feeling of comfort regarding the implementation of this record has made us continue it
until now”

It is clear that here the financial recording system takes place in accordance with the
convenience and habits of the Green Laundry Shop . So that this business has not thought
about making significant changes to financial records and financial reporting that are adjusted
to this SAK-ETAP standard.
4.3.2. Factors Causing the Inability of Green Laundry Businesses to Implement SAK-ETAP-
Based Recording and Preparation of Financial Reports
In recording and preparing SAK-ETAP-based financial reports for MSMEs, it can be said
that they have not been able to run smoothly and have been implemented effectively and
thoroughly in the daily life of business entities, including Green Laundry Shops. The factors
that cause the inability of business entities to carry out SAK-ETAP-based recording and
preparation of financial reports are as follows:
a. Internal Factors The Inability of Green Laundry Stores to Implement SAK-ETAP-
Based Recording and Preparation of Financial Reports
Internal factors are factors that arise from within the business entity that have a
significant influence on the inability of business entities to adjust financial records and
prepare financial reports at the Green Laundry Shop , namely:
1. Lack of knowledge of the Existence of SAK-ETAP Standards

"This is the first time we know about SAK-ETAP from our younger sibling, this is the
first time we have heard about it, let alone read it, this is the first time we know about
it."
 It can be seen that the owner of the Green Laundry Shop is hearing about this
standard for the first time. This indicates that the business owner does not fully
understand the contents and functions of the SAK-ETAP standard. Then the business
owner seems to be lacking in updating knowledge regarding the recording and
preparation of financial reports that must be carried out.
2. There is no competent party in recording or compiling comprehensive financial
reports

"If you yourself don't understand enough and really understand accounting. Even if
you want to learn, it's hard to understand. We also don't have accounting experts, sis."

The business owner said that he did not have sufficient competence to understand
and make records in accordance with applicable standards. Then, in this business,
there is no expert who is able to provide assistance and energy to prepare accounting
records and financial reports according to the SAK-ETAP standard.
3. Has a good view of the importance of SAK-ETAP but needs better development

"From the mother herself, she thinks that this must be owned and understood by
business actors like mothers. You could even say that the business can get better if
this standard is applied, but special assistance is needed so that it runs effectively."

An interesting view was given by the business owner who stated that this standard
should be understood and applied in the business being carried out. The application
of this standard is said to be able to have a good impact when it is successfully
implemented but with the note that special assistance is given in the implementation
process.
b. External Factors The Inability of the Green Laundry Business to Implement SAK-
ETAP-Based Recording and Preparation of Financial Statements
1. There is no socialization and special training regarding the implementation of
SAK-ETAP for MSMEs

"I have never personally heard of anything related to SAK-ETAP except from the
notification from my sister earlier. We have never received socialization and training
for this collectively, sis. So this is still common for us.”

In research conducted by Candra (2016) states that the need for support from
organizers who play a role in disciplining business entities in financial recording and
preparation of financial reports in accordance with SAK-ETAP standards. The
organizers in question are information providers related to SAK-ETAP who are able
to provide an overview regarding the functions, forms and implementation of
standards in a business entity. When the organizers carry out socialization and training
consistently and the complexity of the activities is maintained, the maximum level of
implementation can be carried out by MSMEs in the process of recording their
finances. So that it will indirectly have a positive impact on prospects for the
development of the business world, especially in the field of MSMEs in Indonesia.
2. There is no oversight from the tax for the Green Laundry Shop

"There hasn't been a tax party that has come here and checked our financial records,
maybe it's not visible and it's categorized as a competent MSME in Buleleng"
 Basically, the MSMEs have a relationship with the tax authorities in terms of
imposing taxes on the establishment of a business, the operation of the company's
operations and the pretext of providing appropriate incentives from government
agencies to MSMEs spread across Buleleng. In accordance with Law Number 20 of
2008, the Green Laundry business is classified as a micro business with sales of Rp.
300,000,000 at most for a year. Then Law Number 7 of 2021 developed where when
MSMEs report themselves to the nearest KPP they will obtain a certificate of
registration as a business entity in which the letter will inform the amount of tax
imposed on the business being carried out. To determine the amount of tax for
business entities, MSMEs need to prepare comprehensive financial reports. However,
the Green Laundry Shop has not even compiled a comprehensive financial report, let
alone the conformity that is still very far from SAK-ETAP. With this in mind, the tax
authorities are also observant by issuing Government Regulation Number 46 of 2013
concerning Income Tax from Business Received or Obtained by Taxpayers who have
a gross turnover (turnover) not exceeding Rp. 4,800,000,000,000 in one year of
operation. This causes the tax authorities to assess the appropriateness of business
entities to be taxed. Even though it has been clearly regulated in the applicable
regulations, there are still many MSMEs that consider themselves to be businesses
that do not meet the criteria of being a legal entity that is obligated to pay taxes so that
the tax authorities should pay more attention to the actual situation of the currently
scattered MSMEs.
3. There is no claimant who acts as a user of the financial statements generated by
the Toko Green Laundry entity

"We stand alone, we don't have anyone demanding this and that, we work for the
continuity of our business without any prosecution requiring a financial report."

Basically, financial reports are not only given to external users, such as investors
in a business. However, we as business owners should also know about how the
performance of the company was carried out during one period. This clearly creates a
feeling of less importance in compiling comprehensive financial reports in the Green
Laundry Shop . The owner assesses that when the business is able to continue to run
stagnant, then the business can be said to be a successful business. However, this must
be proven by a preparation of financial reports to assess the extent to which the process
of financial performance is carried out within the company.
5. Conclusions And Recommendations
Conclusion
Based on the research that has been done at the Green Laundry Shop , there are several
conclusions that can be drawn as follows:
1. Green Laundry shop has kept records simply by authorizing records that have used valid notes as
proof of transactions in business entities. It was stated that the Green Laundry Shop had kept
simple financial records with simple bookkeeping but had never implemented the preparation of
comprehensive financial reports in accordance with SAK-ETAP standards.
2. The inability of Toko Green Laundry in implementing the SAK-ETAP standard is caused by
several factors that influence it, both internal and external factors.
3. Internal factors that arise from internal business entities that affect the non-implementation of the
SAK-ETAP standard are the lack of knowledge of business owners about SAK-ETAP and the
lack of competent individuals to implement this standard in the Green Laundry Shop entity .
4. External factors which are factors that arise from outside the business sector that result in the non-
implementation of this standard within the organization are the lack of socialization and special
training related to the application of the SAK-ETAP standard, the absence of effective
supervision from the tax authorities on MSMEs and the absence of a claimant for the provision
of financial reports. in the Green Laundry Shop .
5. The owner also realizes that the SAK-ETAP standard needs to be understood and implemented
in business entities and similar businesses so that credible financial recording and reporting of
financial reports are carried out in accordance with the SAK-ETAP standard.
Suggestion
Suggestions that can be described from the results of the research conducted are:
1. For MSMEs
Financial records and financial reporting that are still carried out in a simple manner are
considered to be incapable of providing the information needed to assess the company's
performance and ability to operate within a certain period of time. It can be seen that when the
Green Laundry Shop implements a simple recording system, business owners are still confused
about whether the business being carried out can be said to be profitable or losing in one
accounting period. Therefore, according to the results of the research conducted, it is hoped that
the Green Laundry Shop will implement the SAK-ETAP standard for financial recording and
preparation of financial reporting given the ease in the process of evaluating financial
performance which can be seen when it is able to prepare financial reports with a comprehensive
structure and in accordance with SAK-ETAP standard.
2. For stakeholders
The success of a set standard requires the support and participation of stakeholders who in
this discussion are SAK-ETAP standard information provider institutions to oversee the
implementation of standards that apply to the continuity of existing MSMEs. This support and
supervision is useful for increasing the understanding of business actors to carry out financial
records and financial reporting that are appropriate for the feasibility of businesses carried out by
MSMEs in Indonesia. As stakeholders, it is hoped that they will be able to ground MSME actors
regarding the importance of enforcing the SAK-ETAP standard in a business entity and provide
special studies in the form of training on implementing the SAK-ETAP standard in order to
maximize the function of issuing this standard. In addition, with the existence of these
stakeholders , it is hoped that they will become a supervisory body that is able to evaluate
consistently the implementation of SAK-ETAP in all existing SMEs. So that in the future there
will no longer be a business entity that is completely unaware of the existence of SAK-ETAP as
a standard for financial recording and preparation of financial reports.
3. For further researchers
Researchers also have some suggestions that can be used as a reference for further research
as follows:
1. Future researchers are expected to maximize observation and interview time to find other
factors that influence the analysis of SAK-ETAP implementation in a business.
2. Researchers are also expected to dig further related to the questions that will be given so that
the data obtained also tends to vary so that it can be studied more deeply.
Research Limitations
The limitation of this research lies in the subjectivity listed in the research which means that this
research depends on how the researcher interprets the implied meaning of the information provided
by the informants so that the tendency for bias still exists.
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