Financial statements are part of a complete financial reporting process usually including balance
sheets, income statements, statements of changes in financial position which can be presented in various
ways, for example as cash flow statements, or statements of cash flows, notes and other reports and
explanatory materials that are part of the financial statements. internal financial statements. This study
aims to determine the effect of accounting understanding, education level, and business size on the
preparation of financial statements based on SAK EMKM. The population of this research is SMEs in
Ponorogo Regency. Respondents of this study were MSME actors in Ponorogo Regency. The source of the
data used is primary data using a research instrument in the form of a questionnaire. The data analysis
method used is quantitative analysis using multiple linear regression analysis by considering the partial
test and simultaneous test. Based on the results of this study, it shows that the three variables, namely
accounting understanding, education level, and business size simultaneously affect the preparation of
financial statements based on SAK EMKM.