The Use of Information Technology in Improving the Quality of Financial Report in Micro, Small and Medium Enterprises

Abstract

Micro, small and medium enterprises have an important role in the economy of a country. Although the role of micro, small and medium enterprises has been recognized nationally, these enterprises face many challenges and obstacles, especially in producing quality financial report. For this reason, this study was conducted to investigate the use of information technology in improving the quality of financial report for micro, small and medium enterprises. To achieve this goal, this study developed a structural questionnaire, which then randomly distributed to 98 micro, small, and medium enterprises in Jambi City. This study found that most businessman in micro, small and medium enterprises agree that micro, small medium enterprises need a computerized system to help record transactions to create financial reports and the importance of financial report in decision making. However, this research shows that there are still micro, small and medium entrepreneurs who do not use computers in their operational activities and still use manual systems. The results showed that many micro, small and medium enterprises have used technology to improve the quality of financial report. The use of information technology as part of digital transformation such as paperless accounting or digitalized documents that was previously done manually. In addition, micro, small and medium enterprises also use internet-based and desktop applications to improve financial reporting.

The Effect of Digitalization on Improving the Timeliness of Financial Reporting: Evidence from Egyptian Listed Companies

“…For digital transformation, previous studies found that the quality of accounting information is affected by digital transformation (Johnston & Zhang, 2018;Gulin, Hladika, & Valenta, 2019;Wiralestari, Rita, & Riski 2020;Phornlaphatrachakorn & Kalasindhu, 2021;Hasan, 2023). For example, Hasan (2023) found that the more a company moves towards digital transformation the more it leads to adequacy and reliability of accounting information and thus benefits its users.…”

“…One of the reasons for using digital technologies is to improve the communication between preparers and users of financial reports. From this perspective, digitalization is a valuable approach to help organizations provide high-quality financial reports, providing useful, accuracy, and timely accounting information for effective decision-making (Wiralestari et al, 2020). This research contributes to the literature on the timing of financial reporting in two ways.…”

Influence of Inventory Turnover, Receivable Turnover, and Sales Growth on Profitability with Good Corporate Governance as a Moderating Variable

“…Profitability is defined as the ability of a company to generate profits from its sources, such as assets, capital, or business income. According to Wiralestari ( 2021) , decision making is influenced by information from financial reports and the financial reports themselves. Profit margin is a measure used to determine how well a business generates profits.…”