Intention to Adopt Cloud Accounting: A Conceptual Model from Indonesian MSMEs Perspectives

Abstract

Over the years, numerous Micro, Small, and Medium Enterprises (MSMEs) have been vigorously established across many countries. Even though the Internet of Things (IoT) has enabled companies to anchorage business returns, most Indonesian MSMEs are highly susceptible to failure and one of the main issues is the inability to manage their financials effectively. The literature on accounting points out that the success of MSMEs owing to the usage of cloud-based Accounting Information Systems (AIS) or Cloud Accounting (CA) could reduce the rate of failure by managing multiple accounting information at a low cost. Although many benefits exist, Indonesian MSMEs are not adopting these platforms in their daily business activities. This study investigates the factors that influence Indonesian MSMEs' intention to adopt CA. The study is directed by unstructured in-depth interviews with seven bestseller MSMEs where a thematic analysis technique was employed to identify them. The interview findings and prevailing literature on the influencing factors based on the TOE (technological, organizational, and environmental) framework to adopt CA in Indonesian MSMEs context are perceived benefits outweighing the cost, perceived compatibility, perceived complexity, owner-manager knowledge on accounting, organization size, competitive pressure, and informal network. The conceptual model further includes government intervention as a moderator in the model.

Faktor Penentu Penerapan Akuntansi Digital pada UMKM: Intervensi Pemerintah sebagai Variabel Pemoderasi

“…Perkembangan pesat UMKM dipengaruhi juga oleh persaingan industri yang berkembang pesat, sehingga UMKM membutuhkan strategi bisnis yang efektif untuk beradaptasi pada perubahan yang begitu cepat baik dalam sisi bisnis maupun teknologi untuk dapat mencapai kinerja bisnis yang ditargetkan. Dengan demikian, pelaku UMKM harus mencari metode yang efektif untuk meningkatkan efisiensi dan profitabilitas dengan memanfaatkan teknologi (Hamundu et al 2020). Kemajuan teknologi di era digital menjadi potensi untuk lebih berkembang bagi UMKM, baik segi pemasaran, kemudahan bertransaksi maupun dalam pencatatan keuangan (Pramono et al 2020).…”

“…Melalui peran pemerintah yang memberikan pendampingan serta regulasiregulasi yang mendukung perkembangan teknologi di UMKM akan semakin mendorong pelaku UMKM untuk menerapkan akuntansi digital yang dirasa memiliki keunggulan relatif daripada metode sebelumnya. H5: Intervensi pemerintah mampu memoderasi pengaruh keunggulan relatif terhadap penerapan akuntansi digital pada UMKM Intervensi pemerintah memainkan peran penting untuk memotivasi pelaku UMKM agar menerapkan teknologi dalam pengelolaan usahanya (Hamundu et al 2020). Pemerintah akan memberikan rekomendasi kepada pelaku UMKM terkait teknologi akuntansi digital yang kompatibel atau sesuai dengan kebutuhan UMKM.…”

COVID-19 Pandemic Challenges for MSMEs: Strategic Options for Surviving in the New Normal Era

“…According to (Lussier & Halabi, 2010), accounting records are critical in determining a company's success or failure. Cloud accounting refers to an accounting system that manages and transmits financial information from consumers to the computer of the cloud service provider (Hamundu et al, 2020). The cloud accounting adaptation method represents a significant shift in the accounting system in use.…”

“…MSMEs make up the majority of businesses worldwide, assisting in creating new jobs and expanding the economy. The International Council of Small Business (ICSB) claims that formal and informal MSMEs contribute about 90% of all business entities, 70% of total employment, and an average of 50% of GDP (Hamundu, Husin, Baharudin, & Khaleel, 2020).…”

Analysis of Burnok's Financial Statements

“…Looking at the financial condition of the MSME owners, it appears that the owners do not have adequate understanding in the field of accounting, especially in identifying production costs that arise during the production process to determining how much the production costs for a product are (Muliadi et al, Kurniawati and Kristanto, 2021;Hamundu et al, 2020;Subagyo et al, 2020). And also how to compile books to be able to report business success in the form of financial statements.…”