Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Utilizing Accounting Information For Enhancing Performance of Indonesian SMEs

Author(s): Heri Yanto, Kiswanto, Suwito Eko Pramono, Kuat Waluyo Jati

The government has declared that SMEs should have implemented Finacial Accounting Standards for SMEs (SAK EMKM) by the beginning of 2018. One of the objectives of this implementation is to provide accounting information for SME’s managers or business owners in developing their businesses. This study attempts to find the impacts of using accounting information (UAI) on SMEs’ performance and to identify the antecedent variables that determine UAI by SME managers or owners. This study employs random sampling and collected 367 data, but only 348 data were appropriate for further analyses. Despite its relatively small magnitude, SMEs’ performance was significantly influenced by the use of accounting information by managers or owners. In turn, the UAI significantly depends on the quality of SMEs’ human resources, technology utilization, and government supports. Human resource quality and government support also impact on technology utilization by managers or owners. The study found that SME human resources play a key strategic factor in developing the business. The government should facilitate many more SMEs to develop their human resources, SAK EMKM implementation, and UAI. To enhance SMEs’ performance, the government should collaborate with higher education institutions, large scale enterprises, and related parties to provide substantial facilitation.