THE INFLUENCE OF ACCOUNTING INFORMATION SYSTEM IMPLEMENTATION ON THE EFFICIENCY AND ACCURACY OF FINANCIAL REPORTS IN MSMES

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in Indonesia’s economic development, contributing more than 60% to the national Gross Domestic Product and absorbing the majority of the workforce. However, many MSMEs continue to rely on manual bookkeeping systems, which are prone to inefficiency, recording errors, and lack of transparency. This study aims to analyze the impact of Accounting Information System (AIS) implementation on improving both the efficiency and accuracy of financial reporting in MSMEs. Using a literature review method, this research synthesizes findings from various empirical studies conducted between 2020 and 2025. The results show that AIS significantly enhances financial recording efficiency through automation, reduction of administrative costs, integration with digital payment systems, and real-time access to financial reports. Additionally, AIS improves the accuracy of financial statements by minimizing human error, eliminating data duplication, and ensuring compliance with applicable accounting standards. Case studies from Indonesian MSMEs indicate improvements ranging from 45% to 85% in efficiency and accuracy after adopting AIS. Despite these benefits, challenges such as high implementation costs, limited digital literacy, and resistance to technological change remain significant barriers. The study concludes that broader education, government support, and policy incentives are essential to encourage wider adoption of AIS and strengthen the financial management capabilities of MSMEs.