INFLUENCE OF CLOUD ACCOUNTING TECHNOLOGY, ACCOUNTING UNDERSTANDING, AND ACCOUNTING STANDARDS ON THE IMPROVEMENT OF FINANCIAL REPORT QUALITY OF MSMES

Abstract

Palembang still face obstacles in preparing financial statements in accordance with applicable standards, due to low accounting knowledge, limited application of accounting standards, and minimal utilization of digital technologies such as cloud accounting. This research employed a quantitative approach using the Structural Equation Modeling Partial Least Square (SEM-PLS) method. The sample consisted of 120 respondents who were financial staff of active MSMEs in Palembang. Data were collected through questionnaires and analyzed using SmartPLS software. The results indicate that all three independent variables cloud accounting technology, accounting comprehension, and accounting standards have a positive and significant effect on the quality of financial statements. The adoption of cloud accounting technology has been proven to enhance efficiency in accounting processes, improve data recording accuracy, ensure data security, and increase transparency in reporting. Adequate accounting comprehension enables the preparation of financial statements in accordance with applicable accounting principles and procedures. Meanwhile, the implementation of accounting standards strengthens credibility, comparability, and reliability of MSME financial statements. These findings highlight the importance of synergy between technology adoption, accounting literacy improvement, and application of accounting standards to foster transparency, accountability, and competitiveness of MSMEs in the digital era.