Exploration of Financial Reporting Mechanisms And Utilization of Accounting Software in Private Tahfiz Institutions Across Malaysia

Abstract

Financial reporting in charitable organizations is important, it is not only to monitor their performance in terms of efficiency and effectiveness in the use of public resources but also to provide information to all bettors with their economic resources and obligations. Public tahfiz institutions are seen to be unable to meet the requests of parents who want to send their children to this school. Thus, the private tahfiz institution (PTI) became an option and an alternative to the tahfiz curriculum. Therefore, PTI enrichment is seen as significant, and the PTI financial management system needs to be improved so that it is structured and systematic. The financing and management of tax institutions depends on student fees, community contributions, and state government provisions. So far, there are no specific financial reporting standards for charities including PTI. It also becomes difficult if the preparation of financial reports is still carried out manually. The rapid movement in the use of information technology (IT) by organizations helps acquire and carry out daily accounting operations using computerized accounting software. Basically, accounting software is used to facilitate the preparation of corporate financial statements. Since most PTIs still do not have