The Role of Accounting System Implementation in Improving Financial Management of Bakery and Cake Businesses in Binjai City

Abstract

The implementation of accounting systems plays a vital role in supporting the sustainability and decision-making processes of Micro, Small, and Medium Enterprises (MSMEs). However, many bakery and cake businesses still experience limitations in applying accounting principles in accordance with established standards. This study aims to analyze the implementation of accounting systems in Bakery & Cake businesses in Binjai City and evaluate their conformity with basic accounting concepts and the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM). This research employed a descriptive qualitative approach using a census method involving 33 Bakery & Cake businesses operating in Binjai City. Data were collected through structured interviews, documentation, and direct observation, and subsequently analyzed using descriptive analysis techniques. The findings indicate that all business owners have carried out basic financial recording, particularly cash receipts and cash disbursements. However, most businesses have not implemented comprehensive accounting procedures, such as inventory recording, calculation of cost of goods sold, journal preparation, ledger posting, and the preparation of financial statements in accordance with SAK EMKM. Although business owners recognize the importance of accounting records for business management, limited accounting knowledge and skills remain significant barriers to proper implementation. Therefore, continuous accounting training and assistance are necessary to improve the quality of financial reporting and strengthen the sustainability and competitiveness of Bakery & Cake MSMEs in Binjai City.