THE EFFECT OF EDUCATION, KNOWLEDGE, AND EXTERNAL FACTORS ON THE QUALITY OF FINANCIAL STATEMENTS ON UMKM MEKAR JATI KARANG BOLO VILAGE

Abstract

UMKM have been chosen by most Indonesians to get out of social problems. UMKM have made such a large contribution to economic development. Seeing the huge contribution given by UMKM, more attention is needed to develop as well as to maintain the existence of UMKM, because in fact UMKM have weaknesses that usually occur in financial management. Many businesses are experiencing financial problems, as a result the business has gone out of business. Financial management problems are factors that can cause failure in UMKM. One of the solutions is through correct accounting practices. Of course this applies to all UMKM regardless of type, including Mekar Jati UMKM. In contrast to the importance of accounting, in fact there are still many UMKM that have not used accounting for complicated reasons, and will only add jobs. Accounting information has an important role in achieving the success of a business, by applying it it makes it easier for a business to make decisions so that its business grows. This study aims to determine the level of use of accounting information at Mekar Jati UMKM in Karang Bolo Village. This type of research is quantitative research. The data obtained by using questionnaires and interviews. The data analysis technique used is descriptive analysis method with a qualitative approach. Keywords: Education, Knowledge, External Factors, Quality of Financial Statements, UMKM