The Role of Accountant Competencies in Improving Financial Statement Quality in Small and Medium Enterprises (SMEs): A Case Study Analysis

Abstract

This study investigates the role of accountant competencies in enhancing the quality of financial statements within small and medium enterprises (SMEs), using a qualitative case study approach. Given the unique challenges that SMEs face, such as limited resources and varying levels of financial expertise, the competencies of accountants are critical for producing accurate, reliable, and relevant financial information. Through in-depth interviews with accountants and SME owners, this research explores how skills such as financial reporting knowledge, regulatory compliance, ethical standards, and analytical ability contribute to the preparation of high-quality financial statements. The findings reveal that accountants with a comprehensive understanding of financial principles and adherence to ethical practices can significantly reduce errors, increase transparency, and improve financial decision-making within SMEs. Additionally, the study highlights that continuous professional development and training in regulatory updates are essential for maintaining high competency levels among accountants in SMEs. This research underscores the importance of building accountant competencies to support sustainable growth and financial stability in SMEs. The insights gained from this study provide practical recommendations for SME owners, accounting professionals, and policymakers to prioritize skill development and professional standards in the accounting practices of SMEs, contributing to broader economic resilience and growth.