Strengthening Accounting Information Systems Adoption and Internal Control Quality: Implications for MSME Financial Performance

DOI

10.2991/978-94-6239-752-1_12How to use a DOI?

Keywords

Accounting system effectiveness; Internal control; financial performance

Abstract

The current situation regarding of the micro, small, medium, enterprises (MSMEs) business still remains a serious problem, and it is affected by the poor financial performance. This research exploring the influence of accounting information systems and internal control on financial performance of MSMEs in Bandung City. This invenstigation used a quantitative approach using verificative analysis to evaluate the association with the factors under study. 80 MSMEs owners in Bandung City were given questionnaires to complete in order to gather data. The sampling technique used was purposive sampling, focusing on MSMEs that have been actively operating and maintaining basic financial records. SEM-PLS was used to analyze the data in order to assess the relationships and test the suggested study hypotheses. These results highlight importance of adopting effective accounting systems and strengthening internal control practices in order to improve financial management. Furthermore, the findings provide practical implications for MSME owners and local governments to enhance record-keeping effectiveness, strengthen internal control systems, and support sustainability and competitiveness of MSMEs. Clear job separation, continuous financial activity monitoring, and periodical cash and inventory verification can all help implement internal control effectively and lower the risk of mistakes and fraudulent activity. This investigation highlights the establishment of internal control and a successful information system that positively increases MSMEs financial performance.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Lilis Puspitawati
AU  - Lesi Hertati
AU  - Regina Melinda
AU  - Latafah Anggani
AU  - Nanang Suryana
PY  - 2026
DA  - 2026/09/04
TI  - Strengthening Accounting Information Systems Adoption and Internal Control Quality: Implications for MSME Financial Performance
BT  - Proceedings of the9th International Conference on Business, Economics, Social Sciences & Humanities – Economics, Business and Management Track (ICOBEST-EBM 2026)
PB  - Atlantis Press
SP  - 135
EP  - 143
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-752-1_12
DO  - 10.2991/978-94-6239-752-1_12
ID  - Puspitawati2026
ER  -