Increasing MSMEs Performance by Utilization of Accounting Software

Abstract

National MSMEs currently have an important role in the Indonesian economy. Its growing number makes competition even tougher. The problem with the financial management of MSMEs isthat the majority of MSMEs still use financial management traditionally, meaning the accounting information system is still not implemented. The reason it is not used by this accounting system is that in addition to assuming the accounting system is a complicated problem, using accounting services is also considered a waste because it requires not a little funds. On the other hand, with the rapid development of information technology, MSMEs businesses are also required to keep up to date with that development. Therefore, to improve business performance, MSMEs businesses must be able to adapt to technological developments. One of the necessary digitization processes in MSMEs business isthe preparation and management of financial statements using accounting software. This is because the company‘s accounting process is an important activity for the smooth running of a business. The assessment of an MSMEs business can be smooth or can not be known from how the accounting report is drafted. In addition, from financial statements and accounting processes the company can be known that the company is in good health or not. The solution to this problem is with the use and utilization of accounting software, because in addition to its easy application, it is also quite cheap.