Assessing Financial Statement Quality in Culinary MSMEs in Manado City Through the Qualitative Characteristics of Financial Information

Abstract

This study aims to assess the quality of financial statement presentation among culinary Micro, Small, and Medium Enterprises (MSMEs) in Manado City. The study employed a qualitative descriptive approach using a Participatory Action Research (PAR) framework, involving nine participants consisting of four culinary MSME owners and five employees. Data were obtained through observation, interviews, documentation, and direct participation in financial recording activities. The analysis focused on four qualitative characteristics of financial information: relevance, reliability, comparability, and understandability. The findings indicate that the quality of financial statement presentation among culinary MSMEs remains inadequate and has not fully met the requirements of SAK EMKM. Financial records are generally limited to basic cash receipts and expenditures, with business and personal transactions often not clearly separated. Inconsistent recording formats, the absence of verification and reconciliation procedures, and limited accounting knowledge further reduce the quality and usefulness of financial information. To address these problems, a financial literacy improvement program was implemented through three stages: socialization and counseling, technical training, and practical mentoring. The program improved participants’ awareness of the importance of financial statements, strengthened their ability to perform daily financial recording and prepare simple monthly income statements, and increased their confidence in applying basic accounting practices independently.