User Competence And Business Digitalization For The Successful Performance Of The Financial Statements

Abstract

Quality financial reports are closely related to the level of knowledge, skills, experience and use of financial technology by the business. This study aims to examine the effect of user competence and the use of financial applications on quality financial reports. This research is motivated by the problem of SME actors who don't have financial competencies and still use conventional methods. Quantitative descriptive analysis is used to describe and test the effect of the research construct. The study population is 121 SMEs who are members of the West Java Indonesian Muslim Entrepreneurs Association (IPEMI). Sample size 98 SMEs which uses a simple random sampling technique. Structural Equation Modeling (SEM) with Partial Least Square (PLS) approach uses to answer research problems and examine the effect of research variables. Research shows user competence and the use of financial applications have a significant effect on the quality of financial reports. Adequate knowledge, skills, and experience are proven to encourage the effective use of E-commerce, Marketplace, and application software by SMEs.

How Tax Compliance, Audit Quality, and Financial Reporting Quality on Corporate Financial Performance in Manufacturing Companies

“… there is a positive correlation between financial reporting quality and financial performance since successful businesses have transparent reporting practices [32].…”

The Role of Accounting Digitization in Entrepreneurial Success in West Java : Quantitative Study of Efficiency, Accuracy, Cost Reduction, Customer Satisfaction, and Data Security

“…Accuracy in accounting refers to the level of truthfulness in financial and reporting statements. Digitalization of accounting has been proven to increase accuracy by reducing the risk of errors in financial reporting (Dewi et (Virginia & Hertati, 2023). This can result in more accurate financial reporting, which can improve decisionmaking and help businesses identify areas for improvement.…”

“…Therefore, it is important to explore the potential benefits of digitalizing accounting in promoting entrepreneurial success in various countries and regions. Thirdly, cross-country comparisons can provide insights into similarities and differences in the impact of digitalizing accounting on entrepreneurial success in different contexts [4], [14]- [16]. This can help identify best practices and policy implications that can promote the adoption of digitalizing accounting in various countries and regions.…”

The Influence of Business Strategy and Organizational Culture on Management Accounting Information Systems

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