bisnisrakyat.id - MSMEs or micro, small and medium enterprises are businesses run by individuals, households, or small business entities. The classification of micro businesses is carried out with a maximum asset limit of 50 million and a maximum turnover of 300 million. The classification of small businesses is carried out with a maximum asset limit of 500 million and a maximum turnover of 2.5 billion. The classification of small businesses is carried out with a maximum asset limit of 10 billion and a maximum turnover of 50 billion.

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MSMEs have a very important role for Indonesia. Because MSMEs contribute the largest GDP, absorb the most jobs, and are relatively resistant to financial crises. This was proven during the 1998 financial crisis. When large companies collapsed due to the crisis, MSMEs managed to survive. As many as 96 percent of jobs were absorbed by MSMEs. Therefore, MSMEs are the backbone of the Indonesian economy.

The role of accounting in business is as its backbone. This is because all companies or business activities definitely require financial data processing to see how far the company is in managing its resources. In accounting, companies can see how much profit the company makes, how much burden it bears, how critical the debt position is, and so on. This financial information can be used to optimize the company's performance in the following year.

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The following is why accounting plays an important role in the smooth running of a business

1. Financial Information Provider

Accounting as an information provider can provide answers to all matters related to the company's finances. Reports containing complete and accurate information can be used to stabilize and even improve the company's performance. With today's technological advances, making financial reports is made easier with software or applications. Applications that are often used to create financial reports include MYOB, Zahir and Acurrate. With accounting software we can minimize errors caused by human error

2. Financial Control Tools

By knowing all the financial information, you can use this information to increase profits, minimize burdens, see capital positions, debts and so on. The company can also improve what has been lacking so far. That way, the company's resources will be maximized and efficient in running its business.

3. Helping Stakeholders in Making Decisions

Precise and accurate financial information can help stakeholders in making decisions. Accounting data describes the real condition of the company without interference from subjective opinions. Therefore, financial information is honest and truthful. This is good if stakeholders want to make decisions objectively.

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4. Liaison with Third Parties

Not only beneficial for the company itself, accounting is also beneficial for shareholders or stakeholders. If a company wants its company to grow rapidly, the company needs to collaborate with other parties. With good financial information, the company can offer others to invest in its company.