Improving the Quality of Financial Reports through Designing a Prototype of Islamic Boarding School Accounting in Medan, Indonesia

Abstract

Islamic boarding school is the educational institutions with dormitory systems or huts that have complex learning. An increasing growth of Islamic boarding school establishment has become a special concern for various parties who want to advance the quality of it. One of the characteristics of an advanced boarding school is the quality of good management and supports the creation of good governance. The ability to manage the process of recording and reporting financial transactions is the most important thing in the process of improving governance, so as to increase transparency for all donors for the long term. This study aims to provide solutions to Islamic boarding schools in improving the quality of financial statements, through the design of Islamic boarding school prototypes based on SAK-ETAP accounting standards. Samples used purposive sampling as many as 6 (six boarding schools), namely 35 respondents. The study uses multiple linear regression analysis as the data analysis techniques and using the classic assumption test through the SPSS program application. The results showed that budget planning, financial administration, and the application of information technology have significant effects on the application of accounting in Islamic boarding school. All three variables have a significant influence on boarding school accounting.