Unveiling the Invisible Cost Culture in Startup Financial Reporting

Heru Heru; Vicente Manuel Luis Guterres; Subur Harahap

doi:10.55927/fjst.v4i9.238

Authors

Heru Heru Universitas Terbuka
Vicente Manuel Luis Guterres Universidade Nacional Timor Lorosa'e
Subur Harahap Institut Bisnis Nusantara

DOI:

https://doi.org/10.55927/fjst.v4i9.238

Keywords:

Invisible Cost Culture, Startup, Financial Reporting, Accounting Transparency, Hidden Costs

Abstract

The phenomenon of invisible cost culture in startup financial reporting often remains overlooked, despite its significant implications for transparency, information accuracy, and business sustainability. This study aims to uncover hidden practices and patterns related to costs that are either undocumented or insufficiently disclosed in startup financial statements. Employing a qualitative approach through case studies of technology-based startups in Indonesia, data were collected via in-depth interviews with founders, financial managers, and investors, and analyzed using thematic analysis. The findings reveal that the invisible cost culture manifests in the form of informal expenses, the use of founders' personal resources, and relaxed accounting practices driven by rapid growth pressures. These conditions not only affect the quality of financial reporting but also undermine startups' credibility in the eyes of investors and external stakeholders. This study contributes to accounting literature by introducing a new perspective on hidden cost culture within the startup context, while offering practical implications for strengthening management accounting systems, internal control, and financial disclosure practices.

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