SME Performance: Ability to prepare financial reports based on SAK ETAP and financial literacy (Empirical study of SMEs in the city of Serang)

Abstract

The background of this research is that SME managers in preparing financial reports based on SAK
ETAP, the managers are given training and assistance by the Department of Cooperatives, SMEs,
Industry and Trade of Serang City, but the managers still focus on production without paying
attention to recording financial transactions, thus hindering the managers in carrying out
development, evaluation, and decision making. The formulation of the research problem is whether
there is an influence between the ability to prepare financial reports based on SAK ETAP on the
performance of SMEs and financial literacy as a moderating variable. The aim of this research is
to test and analyze whether there is an influence between the ability to prepare financial reports
based on SAK ETAP on performance and financial literacy as a moderating variable. The research
method uses quantitative methods, the SMEs population in Serang City was taken using purposive
sampling, hypothesis testing used PLS. The finding that the ability to prepare financial reports
possessed by managers in Serang City affects performance, this is due to the intensive training and
mentoring carried out by the cooperative, SMEs, industry and trade services but SMEs managers
have not been able to prepare it. general financial reports with financial literacy awareness. This
research concludes that the ability to prepare financial reports and financial literacy have a positive
influence on SMEs performance, while the ability to prepare financial reports mediated by
financial literacy has no effect on financial literacy.