Examining The Impact of Accounting Information Systems and Manual Bookkeeping Practices on MSME Performance: The Moderating Role of Human Capiltal

Abstract

The purpose of this study is to evaluate the influence of manual bookkeeping procedures and accounting information systems on the performance of Micro, Small, and Medium-Sized Enterprises (MSME) and to investigate the moderating effect of human capital. The culinary MSME in Tabanan Regency's Baturiti District was the subject of the study. Data was gathered using questionnaires as part of a quantitative research strategy. A straightforward random sample method was used to obtain 98 responders in total. With the use of SmartPLS software, Partial Least Squares–Structural Equation Modelling (PLS-SEM) was used to examine the data. The findings exhibit that MSME performance is influenced both positively and significantly by accounting information systems. The performance of MSMEs is significantly and positively influenced by manual bookkeeping procedures as well. Additionally, the results show that human capital moderates the impact of manual bookkeeping and accounting information systems on MSME performance. It is anticipated that this study would give MSME owners helpful recommendations on the best way to enhance company performance through efficient financial recording systems complemented by sufficient human resources.