https://www.onlinesciencepublishing.com/index.php/ijefm <p>2523-9546</p> Online Science Publishing en-US International Journal of Economics and Financial Modelling 2523-9546 https://www.onlinesciencepublishing.com/index.php/ijefm/article/view/1876 <p>The present study examines the awareness of financial reporting and taxation issues among entrepreneurs in micro, small, and medium-sized enterprises (MSMEs) in the Greater Solo region of Indonesia. An exploratory qualitative approach was adopted for the data collection stage, involving semi-structured interviews, non-participant observation, and document review. The study involved MSMEs from a range of business sectors. Thematic analysis demonstrates that entrepreneurs recognize the significance of financial record-keeping and tax compliance for ensuring business sustainability, facilitating access to financing, and maintaining administrative legitimacy. However, this awareness is predominantly outcome-oriented and is not yet fully supported by procedural knowledge, accounting skills, or confidence in tax reporting. Bookkeeping practices are predominantly manual or semi-digital, inconsistent, and influenced by operational pressures, limited accounting literacy, and the psychological burden associated with taxation. Tax compliance is primarily driven by legal obligations and fear of penalties, rather than by a voluntary understanding of tax obligations, leading to reliance on external assistance. These findings draw on the Theory of Planned Behavior and demonstrate how perceived behavioral control is a key factor explaining the discrepancy between awareness and reporting ability. This study makes a valuable contribution by integrating financial reporting awareness, accounting competence, and tax compliance within a qualitative framework for SMEs.</p> Umatun Markhumah Falikhatun Falikhatun Copyright (c) 2026 2026-07-09 2026-07-09 11 1 1 13 10.55284/811.v11.i1.1876