businesses, small businesses and micro businesses, are individual businesses that meet micro business standards, and small businesses are individual business entities or stand-alone business entities, entities that are not medium businesses or large businesses that meet business standards small business. Medium businesses are individual business entities or individual business entities that are not small businesses or large business entities that fulfill annual sales as regulated by law. Micro, small and medium enterprises (MSMEs) are businesses or activities that provide special services to the community at large and open up employment opportunities to improve the economy of the community at large. with economic development increasing day by day, especially for MSME businesses at Royal Laundry. Understanding and using accounting is very necessary in improving the progress of MSMEs, especially the preparation of financial reports. With increasing profits, the development of MSMEs becomes more stable (1).

With financial reports, the financial or accounting information conveyed becomes clearer, so that business owners can know their financial performance well. There are several weaknesses in preparing financial reports, namely a lack of understanding and knowledge of accounting, especially financial accounting standards for micro, small and medium entities (SAK EMKM). Based on the conditions experienced by MSME business actors in reducing problems with recording financial reports, the government has established appropriate financial recording standards. So that MSME business actors can use SAK EMKM. The Indonesian Accounting Association (IAI) has ratified the Exposure Draft SAK EMKM which was established on 18 May 2016 and became effective on 1 January 2018. The definition of accounting in general is the process of recording, clarifying, processing and compiling transaction data so that the information conveyed can be used in making decisions. decision. When preparing financial reports, you must apply established accounting standards. With the use of accounting, it is necessary to process financial report data more efficiently for both small and large businesses.

The high growth of MSMEs in economic development is not in accordance with the quality of MSMEs in terms of implementing financial recording and management which is the key to the success of these MSMEs. The basic problem with MSMEs is in terms of recording financial reports which is done simply, because MSMEs still experience difficulties in making financial report records, one of the obstacles is the lack of understanding in recording financial reports. Because MSMEs still record incoming and outgoing goods using notes in one note. Because most MSMEs only record goods received using notes in one note without applying actual accounting standards in these MSMEs. Royal laundry is one of the observations that still has not implemented the existing accounting system. In recording financial reports, especially in the royal laundry business, they do not apply report preparation in accordance with the applicable SAK EMKM. In fact, this report is very important for businesses or entities in monitoring the amount of business turnover over a certain time, starting from profit and loss, amount to be paid, tax invoices and so on. But in reality, there are still many entrepreneurs who only focus on marketing strategies and actually ignore the financial reports of their business, especially the royal laundry business. So, there is a very high risk of unwanted increases in spending. Purchases of supplies and equipment that are spent are not recorded in the journal, so that incoming cash flows are not recorded properly. Expenditures on supplies and equipment that should be in the flow of financial statements are not recorded in adequate bookkeeping.

The type of research used in the research is descriptive research with data analysis methods, namely qualitative data. According (2) descriptive research aims to describe what currently applies. In it there is an effort to describe, record, analyze and interpret conditions that are currently occurring or existing, in other words, descriptive research aims to obtain information about the current situation and look at the existing variables. This research analyzes and describes the analysis of financial reports on MSMEs regarding the implementation of SAK EMKM, and the results are expected to provide an overview of the MSMEs studied.

According (3) data analysis is a process of searching and compiling data systematically by organizing all data into categories that can be broken down into units, synthesizing, arranging into patterns and choosing what is important and what will be learned in making a conclusion so that it can easily be understood by oneself and others.

The steps taken by researchers are:

1. Identify Royal Laundry's financial statements

2. Identify transaction data at Royal Laundry

3. Presentation of financial reports and determining account names and account numbers

4. Prepare financial reports based on SAK EMKM

The following is the financial report recording data that has been obtained from Royal Laundry, so the financial report appears as follows:

Income statement

The profit and loss statement (Income Statement or Profit Loss Statement) is part of a company's financial statements produced in a certain accounting period. which describes the elements of a company's income and expenses to produce a profit or loss. Entities present accounts and portions of accounts in the income statement that are relevant to understanding financial performance. The income statement includes all income and expenses recognized in a period unless SAK EMKM requires it. SAK EMKM regulates the treatment of the impact of corrections to errors and changes in accounting policies not as part of profit or loss in the period in which the change occurs. The income statement presents the company's income, financial expenses, tax burden, and profit or loss or net loss. The explanation of the information presented in the Royal Laundry MSME profit and loss report is as follows:

Table 1 Royal Laundry MSME Profit and Loss Report

                Source: UMKM Royal Laundry data processed

Financial Position Report

The financial position report or balance sheet is a list that shows the financial position. This balance sheet report is presented in secondary form, namely the asset group is presented on the left and the liability and equity groups are presented respectively on the right, liabilities are reported first and then equity is reported below. Based on SAK EMKM, the financial position report presents the assets, liabilities and equity of an entity at the end of a certain period. The financial position report was prepared based on information from MSME Royal Laundry:

Table 2 Balance Sheet Report

        Source: UMKM Royal laundry data processed

DISCUSSION

The research results show that the accounting system at Royal Laundry is still irrelevant and not in accordance with SAK EMKM, because the recording carried out is not in accordance with the accounting cycle and financial reports based on accounting standards. This shows that Royal Laundry has not been able to measure the level of company financial performance and has not been able to know business developments. This is due to the lack of knowledge regarding understanding the preparation of financial reports. The importance of financial reports is that they are used as information for internal and external parties about financial management and the development of a business.

Table 3 Comparative Results of Royal Laundry UMKM Research and SAK EMKM

      Source: data processed 2023

Types of Royal Laundry MSME Financial Reports

               Source: MSME Royal Laundry

Obstacles Faced by Royal Laundry MSMEs in Preparing Financial Reports

The Royal Laundry UMKM business does not apply SAK EMKM in the preparation of financial reports because:

1. The laundry owner's lack of knowledge about SAK EMKM regarding the presentation of financial reports, the manager only makes records in the form of simple records originating from proof of transactions.

2. There are no professional accounting staff at Royal Laundry MSMEs. The owner admitted that he did not have accounting staff who could assist the owner in preparing financial reports in accordance with SAK EMKM. This is because the owner does not dare to employ accounting personnel to simply prepare financial reports.

3. The owner of the MSME Royal Laundry admitted that he did not consider it important in preparing financial reports. The owner admits that a privately managed business does not require the preparation of financial reports, because the most important records are records that can be understood by the owner. The laundry owner admitted that carrying out complicated financial records was a waste of time. The specific obstacle is not implementing the preparation of financial reports in accordance with SAK EMKM. Based on these results, it can be concluded that the education of expert Accounting Staff plays an important role in helping implement SAK EMKM in companies to measure the level of company development and company financial performance.

The owner admitted that he had no experience in preparing detailed financial reports. This is due to the lack of adequate education factors in preparing financial reports

The results of the research show that the accounting system implemented by UMKM Royal Laundry is still not in accordance with SAK EMKM because the recording of financial reports is not in accordance with the accounting cycle and does not have a single type of financial report that is in accordance with accounting standards. This shows that Royal Laundry UMKM has not been able to measure the level of company financial performance and has not been able to know business development. The importance of financial reports is used as information for internal and external parties regarding business management and development

Suggestion

Suggestions that can be conveyed from the author are:

1. Laundry service businesses should have an accounting recording system that is in accordance with business needs based on SAK EMKM.

2. It is hoped that laundry service business owners can increase their knowledge of accounting so that business management can develop better by utilizing the financial report information that has been prepared. The author is still aware that there are still many shortcomings and 

3. limitations in training in recording transactions and implementing reportsfinancial management based on SAK EMKM at Royal Laundry.

4. Recording transactions and applying financial reports based on SAK EMKM was carried out because Royal Laundry did not yet know how to account for them so that their financial reports could be useful.

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