The study was published in the International Journal of Management and Business Intelligence (IJMBI), Volume 4, Issue 4, 2026, under the title “The Effect of Accounting Information Systems, Financial Literacy, and Cost Control on Financial Performance.” The research focused on MSMEs operating in Johar Baru District, Central Jakarta, an area known for its active small-business sector.
As digital transformation continues to reshape the business landscape, MSMEs face growing challenges beyond marketing and competition. Many business owners still struggle with financial reporting, expenditure management, and making business decisions based on accurate financial data. These challenges can directly affect business sustainability and long-term growth.
The findings are particularly important given the critical role of MSMEs in Indonesia’s economy. MSMEs contribute approximately 60 percent of the country’s Gross Domestic Product (GDP) and employ more than 97 percent of the non-agricultural workforce. Despite this contribution, financial literacy levels among Indonesians remain relatively moderate, highlighting the need for stronger financial management capabilities among business owners.
To examine the factors influencing financial performance, the researchers surveyed 110 MSME owners and managers in Johar Baru District. Data were collected through questionnaires and analyzed using advanced statistical modeling to identify relationships among the variables studied.
The results revealed that all three variables—accounting information systems, financial literacy, and cost control—have a positive and significant impact on MSME financial performance.
Key findings of the study include:
Accounting Information Systems positively affect financial performance with a coefficient value of 0.273.
Financial Literacy positively affects financial performance with a coefficient value of 0.288.
Cost Control has the strongest influence on financial performance with a coefficient value of 0.407.
These findings indicate that MSMEs achieve better financial outcomes when they implement effective accounting information systems, possess stronger financial knowledge, and apply efficient cost-control practices.
The study also found that the research model explains approximately 61.1 percent of the variation in MSME financial performance, while the remaining 38.9 percent is influenced by other factors not included in the study.
According to Raniah Nur Zahirah and Luckman Ibrahim, accounting information systems provide business owners with accurate and timely financial information that supports better decision-making. Reliable financial information enables entrepreneurs to evaluate business performance, monitor financial conditions, and plan future business strategies more effectively.
Financial literacy was also identified as a crucial factor in improving business performance. Entrepreneurs with a strong understanding of financial concepts are generally better equipped to manage cash flow, prepare budgets, assess financial risks, and make informed investment decisions. As a result, they are more likely to maintain financial stability and support sustainable business growth.
Among the variables examined, cost control emerged as the most influential factor. Effective cost-control practices help businesses minimize waste, improve operational efficiency, and maximize profitability. By carefully monitoring expenditures and ensuring that costs remain within planned budgets, MSMEs can strengthen their financial position and improve overall business performance.
The study has important implications for various stakeholders. For MSME owners, the findings emphasize the importance of adopting systematic financial management practices and utilizing accounting technologies to support business operations. For government agencies and MSME development organizations, the research provides evidence supporting the need for training programs focused on financial literacy and financial management skills.
In the era of digital business transformation, financial management capabilities are no longer optional. The ability to understand financial information, manage expenses efficiently, and make data-driven decisions has become essential for business sustainability. MSMEs that successfully develop these capabilities are more likely to grow, remain competitive, and achieve long-term success.
Author Profile
Raniah Nur Zahirah is a researcher from Universitas Teknologi Muhammadiyah Jakarta whose academic interests include accounting, financial management, and MSME development.
Luckman Ibrahim is an academic and researcher at Universitas Teknologi Muhammadiyah Jakarta, specializing in management, accounting, and business financial governance.
Research Source
Article Title: The Effect of Accounting Information Systems, Financial Literacy, and Cost Control on Financial Performance
Authors: Raniah Nur Zahirah, Luckman Ibrahim
Journal: International Journal of Management and Business Intelligence (IJMBI)
Volume/Issue: Volume 4, Issue 4 (2026)
DOI: https://doi.org/10.59890/ijmbi.v4i4.35
Journal URL: https://journalijmbi.my.id/index.php/ijmbi
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