Empowering MSMEs through SAK EMKM Financial Reporting and Tax Compliance Assistance

Abstract

Micro, Small, and Medium Enterprises (MSMEs) face structural challenges in financial recordkeeping and tax compliance, particularly in preparing SAK EMKM-based financial statements and filing Annual Tax Returns accurately. This community service program aimed to improve the competency of 20 MSME operators supervised by KPP Pratama Malang Selatan through a Participatory Action Research (PAR) approach comprising five stages: problem identification, planning, implementation, evaluation, and reflection. Participants, selected through purposive sampling across three business sectors — culinary (9), retail (7), and services (4) — received integrated training in simplified income statement preparation based on SAK EMKM, guided Annual Tax Return filing via the Coretax system, socialization of PMK No. 164 of 2023, and a practical automated Final Income Tax calculation template built in Microsoft Excel. Competency was measured using pre-test and post-test instruments consisting of eight multiple-choice questions and three Likert-scale self-efficacy items. Results showed that the average total score improved from 43.2 (Very Low category) at pre-test to 85.7 (Good category) at post-test, yielding an average N-Gain of 74.6% classified as High. Self-efficacy scores increased from 1.4 to 3.9 on a 1–5 scale. The automated Excel template serves as the primary practical output enabling participants to independently record monthly gross revenue and calculate Final Income Tax obligations on an ongoing basis. This initiative directly contributes to the Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) by strengthening the financial resilience and formalization capacity of MSMEs, and SDG 17 (Partnerships for the Goals) through the collaborative model established between higher education institutions and the tax authority.