Abstract:
Micro, Small, and Medium Enterprises (UMKM) are vital to Indonesia's economy, contributing significantly to GDP and
employment. However, many UMKM struggle with financial management, especially in accounting and financial
reporting, due to a lack of accounting knowledge. Adequate accounting knowledge is essential for UMKM to create
reliable financial reports that can help with decision-making, financial planning, and accessing financing. This research
aims to assess the impact of accounting knowledge on UMKM entrepreneurs' willingness to create financial reports,
identify challenges they face in implementing accounting practices, and recommend strategies to improve accounting
knowledge. Past studies have shown that good accounting knowledge leads to better financial performance for UMKM.
Challenges in implementing accounting practices include low education levels and limited resources for training.
Providing digital accounting training is recommended to enhance UMKM entrepreneurs' ability to produce accurate and
efficient financial statements.
