Dodol Garut Application: Human Resources Competency, Business Size, Information Technology Utilization, and Financial Reporting Quality

Department of Accounting, School of Economics and Business, Telkom University, Indonesia

^* Corresponding author: cahyaningsih@telkomuniversity.ac.id

Abstract

Many MSMEs have not recorded financial transactions, so they have difficulty preparing financial reports because they feel the process is too complicated. Implementation of the Dodol Garut Application for Dodol Entrepreneurs in Garut City is expected to solve these problems. The Dodol Garut Application helps in inventory management and financial records to improve financial reporting quality. Therefore, this study investigates the effect of business size, human resources competency, and information technology utilization on financial reporting quality. Responses of 33 Dodol Entrepreneurs who implemented the Dodol Garut Application are processed using multiple linear regression analysis with SPSS Software. The results indicate that business size and information technology utilization positively affect financial reporting quality. Other results show that human resources competency does not affect financial reporting quality. Businesses with a larger size have more human resources available to manage the business efficiently. By using an integrated information system, employees can manage data more quickly and on time, increasing their ability to manage the business effectively. Businesses that are managed effectively and efficiently can present financial information more quickly and accurately to have quality financial reports.