Social Sciences
a year ago

Improved Accounting Systems Boost Financial Performance of Batik MSMEs in Solo

Devotion Journal of Research and Community Service
Accounting Information Systems on The Financial Performance of Batik MSMEs in Solo Raya through The Quality of Financial Reports: The Role of Accounting Understanding as Moderation
Sarsiti Sarsiti

Paper Summary

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The study looked at how accounting systems affect the financial reports and performance of small batik businesses in Solo Raya. They found that accounting systems impact the quality of financial reports, which in turn affects the businesses' financial performance. However, the accounting systems themselves do not directly impact financial performance. The researchers also discovered that having a good understanding of accounting does not change the relationship between accounting systems and financial report quality. Overall, the study shows that accounting systems indirectly influence the financial performance of batik businesses through the quality of their financial reports.