Main Article Content
Abstract
Many Micro, Small, and Medium Enterprises do not fully understand the importance of financial reports. Without an adequate understanding of accounting, MSMEs often produce financial reports that fail to represent their actual financial condition This study investigates the impact of accounting understanding on the quality of financial report preparation among MSMEs in the marine product processing sector in Bandar Lampung City. A quantitative approach was employed, collecting data through a survey of 37 MSMEs who regularly prepare financial reports. Data analysis was conducted using SPSS, with results indicating a positive and significant effect of accounting understanding on financial report quality (R² = 10.4%). These findings underscore the importance of enhancing accounting literacy to improve financial reporting accuracy and reliability, ultimately supporting better financial management and business sustainability for MSMEs. MSMEs can manage finances professionally, which contributes to business sustainability, market competitiveness, and the ability to access funding from various sources