THE IMPACT OF DIGITAL ACCOUNTING APPLICATION USAGE ON FINANCIAL MANAGEMENT EFFICIENCY OF SMES IN THE DIGITAL ECONOMY ERA

Abstract

The expansion of the digital economy has driven Small and Medium Enterprises (SMEs) to increasingly rely on information technology to support business operations, particularly in the area of accounting and financial management. Digital accounting applications have become an essential tool for SMEs in managing financial activities more efficiently, especially considering their limited resources and growing operational complexity. This study aims to analyze the effect of digital accounting application usage on the efficiency of financial management among SMEs in the digital economy era.

This research applies a quantitative approach using a causal associative design. Data were collected through a structured questionnaire distributed to SME owners or managers who actively use digital accounting applications in managing their business finances. Digital accounting application usage is measured through indicators such as perceived ease of use, perceived usefulness, and frequency of use. Meanwhile, financial management efficiency is evaluated based on time efficiency, cost efficiency, and the accuracy and timeliness of financial information. Data analysis was conducted using simple linear regression to determine the relationship between the variables.

The results are expected to demonstrate that the utilization of digital accounting applications positively influences the efficiency of SME financial management. These applications assist in accelerating transaction recording processes, minimizing administrative errors, improving the accuracy of financial reports, and reducing operational costs. In addition, the availability of timely and reliable financial information supports better managerial decision-making.

This study contributes to the development of literature related to digital accounting and SME financial management by providing empirical evidence on the role of digital technology in improving financial efficiency. Practically, the findings are expected to encourage SME owners and relevant stakeholders to adopt digital accounting applications as a strategy to enhance business sustainability in the digital economy era.