An Information Systems Model for Cloud-Based Accounting Adoption and MSME Financial Reporting Compliance
DOI:
https://doi.org/10.15408/aism.v9i2.52369Keywords:
Information systems model, cloud-based accounting adoption, financial reporting compliance, digital financial transformationAbstract
This study proposed an information systems model to investigate the relationships among cloud-based accounting adoption, financial reporting compliance, and reporting quality in Indonesian micro, small, and medium enterprises (MSMEs). A total of 320 records were collected and processed through data cleaning, coding, normalization, and indicator standardization before being operationalized into latent constructs based on expert-defined measures. Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4.0 was employed in the analysis. The measurement model demonstrated adequate reliability and convergent validity, satisfying recommended thresholds for Cronbach's Alpha, Composite Reliability, and Average Variance Extracted, while the structural model showed acceptable explanatory power. The results reveal that compliance with standards positively influences financial reporting quality (β = 0.32). Cloud-based accounting adoption also significantly mediates and strengthens this relationship (β = 0.45). MSMEs combining regulatory compliance with cloud accounting achieved the highest reporting quality. These findings extend the information systems literature by demonstrating the enabling role of cloud accounting in transforming compliance into improved reporting outcomes, while offering practical implications for policymakers, MSME support agencies, and software developers seeking to enhance financial accountability and digital transformation.
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