USE OF ACCOUNTING INFORMATION IN IMPROVING THE SMEs PERFORMANCE IN INDONESIA

Abstract

ABSTRACT
Financial statements are information that can be used as a tool for decision making for information users. The use of accounting information will increase if the business owner knows the need for that information in making business decisions. Financial statement information has an important role to achieve business success. This research was conducted at MSMEs in Indonesia. The main obstacle that is often experienced by MSMEs is capital, many government policies to facilitate special loans to MSMEs, but many MSMEs cannot touch the offer because MSMEs have not been able to compile financial reports properly. The purpose of this study is to find out how the use of accounting information in improving the performance of MSMEs and the obstacles faced by MSMEs in Indonesia in improving performance. The research method is qualitative. Data collection was carried out by in-depth interviews and focus group discussions (FGD), which included informants as SMEs, Cooperatives and SMEs, MSME experts. Data analysis was performed with qualitative analysis, the analysis phase carried out was data collection analysis, data reduction, data display, and conclusion. The results of this study indicate that MSMEs in Indonesia especially in the city of Medan have not used accounting information as decision making in order to improve their business performance. Constraints faced by MSMEs in Indonesia generally are the problems of human resources, capital, limited raw materials such as threads that have to be imported from abroad and cause the cost of production to increase, while also constraints in the preparation of financial statements.