A Phenomenological Study Of The Implementation Of Accountability In Micro, Small, And Medium Enterprises In Gianyar Regency

Abstract

This study examines how micro, small, and medium enterprises (MSMEs) in the handicraft sector of Gianyar Regency understand and implement financial accountability, particularly in relation to the Financial Accounting Standards for Entities without Public Accountability (SAK‑ETAP). A qualitative phenomenological approach was applied through in‑depth interviews, observation, and documentation involving 12 MSME owners/managers who hold a taxpayer identification number and have operated for at least three years. The findings reveal that accountability is largely interpreted as honest and orderly recording of cash flows in simple cash books rather than compliance with formal accounting standards, constrained by limited knowledge, human resources, costs, and lack of continuous assistance. Nevertheless, there is a growing awareness that accountable financial reporting is crucial to enhance credibility and access to finance, indicating the need for sustained support and mentoring to improve the quality of MSME financial reporting.