Felix Williansyah, Meiliana Meiliana

Community Service Project At Smes In Batam: Reviewing Financial Statements and Calculating Corporate Annual Income Tax

Introduction

Community service project at smes in batam: reviewing financial statements and calculating corporate annual income tax. Batam's community service project assists SMEs in reviewing financial statements and calculating corporate annual income tax, implementing MBKM policy to improve tax compliance.

Abstract

Following the Decree of the Minister of Education and Culture Number 3 of 2020, Universitas Internasional Batam implements the Merdeka Belajar Kampus Merdeka (MBKM) policy. This community service project implemented MBKM policy. A team consisting of a student and a lecturer from the Undergraduate Program in Accounting conducted this project. Team members helped SMEs in Batam reviewed and improved their financial statements and calculated their annual corporate income tax. We implemented this project jointly with PT Anugerah Manajemen Abadi during the period of August to December 2022. PT Anugerah Manajemen Abadi introduced us to four SMEs with limited knowledge and human resources who needed help understanding tax regulations. Those SMEs are engaged in onion trading, machinery, freight forwarding, and housing development. The Team analyzed the financial reports presented by SMEs and adjusted them according to tax regulations (Government Regulation of The Republic of Indonesia Number 7 of 2021 about general provisions and tax procedures). Adjustments were made, among others, to expenses related to "3M" (earning, collecting, and maintaining income) by fiscal reconciliation. Based on the adjusted financial reports, the Team calculated the 2022 corporate income tax expense (PPh article 29). Moreover, the Team provided SMEs with assistance in clarifying the results of their tax reporting to the tax office, including if the tax officer required additional explanations. As a result, four SMEs, which are lacking in human resources and knowledge of taxation, can receive assistance in calculating their corporate tax expenses.

Review

This community service project effectively addresses a critical need among Small and Medium Enterprises (SMEs) in Batam, aligning with Indonesia's Merdeka Belajar Kampus Merdeka (MBKM) policy. The initiative, undertaken by a collaborative team of a student and a lecturer from an Accounting program, demonstrates a commendable practical application of academic knowledge. By focusing on reviewing and improving financial statements and accurately calculating corporate annual income tax, the project directly tackles common challenges faced by SMEs, particularly those lacking expertise and resources in financial and tax compliance. The clear objective and direct engagement with real-world problems underscore the relevance and practical impact of this endeavor. The methodology employed appears robust and well-structured. The collaboration with PT Anugerah Manajemen Abadi to identify and access four diverse SMEs – spanning onion trading, machinery, freight forwarding, and housing development – provides a good cross-section of businesses likely to benefit from such assistance. The team's systematic approach, involving the analysis and adjustment of financial reports according to specific tax regulations (Government Regulation No. 7 of 2021), including fiscal reconciliation for "3M" expenses, highlights a meticulous and legally compliant execution. Furthermore, the provision of assistance in clarifying tax reporting results with the tax office extends the project's utility beyond mere calculation, offering comprehensive support for these under-resourced entities. As a result, the project successfully delivered tangible benefits to the four participating SMEs, directly addressing their human resource and knowledge deficits in taxation. This intervention likely contributes to improved financial accuracy, reduced compliance risks, and potentially optimized tax obligations for these businesses. While the abstract effectively outlines the process and immediate outcome, future reporting could explore the long-term impact on the SMEs' financial health and decision-making, or even quantify the financial benefits derived from the team's assistance. This project serves as an excellent model for how academic institutions can meaningfully contribute to local economic development through practical, policy-driven community engagement.

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