Effectiveness of Financial Report Preparation Training in Improving Accountant Competence and Its Impact on Financial Report Quality
R. Susanto Hendiarto *
Widyatama University, Indonesia.
Ase Suryana
Widyatama University, Indonesia.
Didi Tarmidi
Widyatama University, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
Background: MSMEs are crucial for economic growth and employment in Indonesia, but many face challenges like competition and weak financial management. Limited accounting knowledge leads to poor record-keeping and difficulty preparing financial reports, making effective decision-making harder. Adopting proper accounting practices is essential for improving business performance and sustainability.
Objective: This study investigates the effect of financial report preparation training on MSME competency and its implications for financial report quality in MSMEs guided by the West Java Chamber of Commerce and Industry (KADIN) in Bandung.
Research Design: The study employs a quantitative approach using a descriptive-analytical case study design with a causal framework. The relationships among variables are examined through hypothesis testing and path analysis
Location and Duration Study: The research was conducted on MSMEs guided by West Java KADIN in Bandung during the COVID-19 pandemic.
Methodology: Primary data were collected through a structured questionnaire using a five-point Likert scale. This study was conducted in the context of MSMEs under the guidance of the West Java Chamber of Commerce and Industry (KADIN West Java). The sample consisted of 39 respondents selected through purposive sampling from the guided MSME group. The research instrument comprised 12 items for Financial Report Preparation Training, 13 items for Competency, and 14 items for Financial Report Quality. The data were analyzed using descriptive statistics and inferential analysis with SPSS. The hypotheses were tested using the t-test, while the causal relationships among variables were examined through path analysis.
Results: The findings show that financial report preparation training has a positive and significant effect on competency (Sig. = 0.024; B = 0.312). Competency has a positive and significant effect on financial report quality (Sig. = 0.001). Financial report preparation training also has a positive and significant direct effect on financial report quality (Sig. = 0.018). These results indicate that training improves financial report quality both directly and indirectly through increased competency.
Conclusion: Financial report preparation training strengthens MSME competency and improves the quality of financial reports. The study recommends future research using larger and more diverse samples and longer study coverage to enhance generalizability and to capture broader MSME conditions related to SAK-EMKM implementation and financing access.
Keywords: Training in preparing financial reports, competency, quality of financial reports, MSME