Accounting Record Keeping Practices in Small and Medium Sized Enterprise’s (SME’s) in Sri Lanka

Madurapperuma, M.W.; Thilakerathne, P.M.C.; Manawadu, Isuru

doi:10.11648/j.jfa.20160404.14

Cited by 19 publications

(17 citation statements)

References 7 publications

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“…The target population comprised of 100 SMEs operating retail shops, manufacturing firms and suppliers of various services in Gampaha district in Sri Lanka [11]. It was concluded that the most of the SMEs do not keep complete accounting records because lack of accounting knowledge and the cost of hiring professional accountants.…”

Section: Madurapperuma Et Al "mentioning

confidence: 99%

The Implementation of SAK EMKM on UMKM Financial Reports (Case Study of Cibuntu Tofu UMKM, Bandung)

Hernawati¹,

Kuntorini²,

Pramono³

2020

Proceedings of the 2nd Social and Humaniora Research Symposium (SoRes 2019)

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Industry in Indonesia is developing quite rapidly, especially home industries that support people's lives; one of which is tofu industry. In reality, this tofu industry is not yet developing due to the absence of good management and financial administration system caused by the lack of knowledge of SMEs (hereby called UMKM) about the importance of making financial reports. Accordingly, UMKM have difficulties in knowing and understanding their business financial condition. This research aims to help UMKM owners implement SAK EMKM (Financial Accounting Standard for UMKM) in preparing standardized, relevant, and reliable financial reports. The method of implementing research is a case study of Cibuntu Tofu UMKM in Warung Muncang Village, Bandung Kulon District, Bandung City. The research presentation approach is descriptive analysis. Data collection techniques for research activities are observation, interviews, and documentation. The result of this study is Cibuntu Tofu UMKM makes financial reports still manual and very simple and not in accordance with standard because business owners do not understand the financial reporting standards specifically for UMKM. The application of financial statements in accordance with SAK EMKM presents financial statements consisting of three components such as financial position reports, income statements, and notes to financial statements. This financial report can be used for accountability, reviewing the company's budget, measuring going concern companies, making business plans, knowing the financial condition and submitting additional capital to the bank. This research is also expected to provide information for MSME owners Cibuntu Tofu in implementing SAK EMKM.

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Section: Madurapperuma Et Al "mentioning

confidence: 99%

The Implementation of SAK EMKM on UMKM Financial Reports (Case Study of Cibuntu Tofu UMKM, Bandung)

Hernawati¹,

Kuntorini²,

Pramono³

2020

Proceedings of the 2nd Social and Humaniora Research Symposium (SoRes 2019)

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“…Dengan demikian, perhitungan laba secara tunai telah memenuhi kebutuhan pemilik bisnis. Ketiadaan dorongan eksternal atau paksaan mengenai bentuk akuntansi yang harus dipraktikkan telah diungkapkan oleh Jacobs dan Kemp (2002) sebagai salah satu penyebab kesulitan menemukan praktik akuntansi sesuai standar pada pedagang mikro di Bangladesh maupun Sri langka (Madurapperuma et al, 2016).…”

Section: Keteranganunclassified

Transformasi praktik akuntansi Usaha Mikro, Kecil, Menengah (UMKM): dari memori ke catatan

Syariati

Ludigdo

Djamhuri

2020

JAA

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Accounting is the language of business. Changes that occur in business certainly have an impact on accounting. Previous research on accounting practices only explains existing accounting practices without linking these changes with business changes. This research explores the forms of accounting changes caused by business changes in manufacture in Micro, Small and Medium Enterprises (MSMEs). Manufacturing companies are chosen with consideration of business complexity which leads to a greater requirement for accounting practices. The research result shows a transformation of MSMEs's accounting practices related to the business changes. Task delegation is a factor that drives the transformation of accounting practices from relying on memory to records. Fairness becomes a value in the transformation of this accounting practice.

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“…In addition, Lalin and Sabir [47] added that the most powerful pressure that forces SMEs to provide a complete financial statements is pressure coming from regulatory authorities. There is positive link between values of accounting data used inside SME with their business's outcome and continued existence [48], thus, resulted that most businesses had to close down due to failure to provide good accounting records and practices.…”

Section: The Application Of Accounting Practices Among Microenterprisesmentioning

confidence: 99%

An Analysis of Basic Accounting Practices of Microenterprises

Seman¹,

Jusoh²,

Rashid³

et al. 2019

IJEAT

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Every microenterprise needs to learn and perform basic accounting practices to ensure that their business progress is running smoothly. Besides able to improve the business performance of a company, accounting practices also represent the result of operations of a company, as well as the statement of financial position. Therefore, by understanding financial performance very well might help the microenterprises not only to evaluate and monitor their business activities but also facilitate them in a critical way to make a better decision. The purpose of this paper is to study the application of basic accounting practices among the microenterprises in Batu Pahat. The data were collected among 157 owners of microenterprises. The data were analysed in frequency and percentage form by using The Statistical Package for Social Sciences (SPSS). The findings showed that most of the microenterprises practiced a very basic accounting system, maintained both cash and accrual accounting and practiced recording both electronically and manually. The survey also showed that most of the microenterprises completed the accounting cycle by keeping records of their daily business transaction and prepared the financial statement at the end of period mostly on income statement and statement of cash flow. With such well-maintained and completed financial records, it can be translated into feasible and good decision-making which may eventually result in business success. Besides, this survey found that the main challenges that were faced by microenterprises were lack of accounting knowledge and limited cost and time in preparing the financial statement for their businesses. Thus, it was recommended that microenterprises should improve their accounting skills and increase their knowledge by joining any training for seminar on the accounting practices toward the effectiveness of their financial management and entrepreneurial development

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Accounting Record Keeping Practices in Small and Medium Sized Enterprise’s (SME’s) in Sri Lanka

Cited by 19 publications

References 7 publications

The Implementation of SAK EMKM on UMKM Financial Reports (Case Study of Cibuntu Tofu UMKM, Bandung)

The Implementation of SAK EMKM on UMKM Financial Reports (Case Study of Cibuntu Tofu UMKM, Bandung)

Transformasi praktik akuntansi Usaha Mikro, Kecil, Menengah (UMKM): dari memori ke catatan

An Analysis of Basic Accounting Practices of Microenterprises

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