Abstract

Preparation and utilization of financial statements that are part of the financial aspects that can help small medium enterprise (SMEs) in developing the business. Accounting information contained in the financial statements can be used for management decision making, reducing agency costs and as information for creditors (Allee and Yohn 2009; Cassar 2009). In May 2009 the Financial Accounting Standards Board has issued the Financial Accounting Standards of Entities without Public Accountability (SAK ETAP), effective on January 1, 2011. This study aims to determine the relationship between the quality of financial statements and SAK ETAP on the amount of credit received by SMEs. This research is a quantitative research, using primary data, collecting data using questionnaires distributed to 100 respondents online and offline located in Jakarta, West Java and Bali. The results of this study show that the quality of financial statements affect the amount of credit obtained by SMEs which means that the more qualified financial statements the amount of credit that can be obtained greater than the companies that do not have the financial statements that are less qualified. This study proves that the quality of SME

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