Analysis of Factors Affecting the Interests of SMEs Using Accounting Applications

Technological developments in the world have entered the period of the industrial revolution 4.0. The impact on technological progress is a change in the perspective of manuals, business maps of the world, even in various aspects of economic, social, political, and cultural life. In line with the rapid development of technology, companies, and micro and small and medium enterprises (SMEs) increasingly need technology for the sustainability of their businesses. This study aims to analyse the factors that influence the interest of SMEs using accounting applications. The research method used is a deductive approach. The results of this study cannot yet reject the hypothesis that price, performance, stability, flexibility, implementation, customisation, and vendor support influence the decision to use accounting software.


Introduction
The development of technology has changed the way and business around the world. Along with the development of these technologies, developments also occur in various aspects of life, for example, in the elements of economic, social, and cultural politics (Kurniawan & Diptyana, 2011). Currently, technological developments in the world have entered the period of the industrial revolution 4.0 (Tjandrawinata, 2017). There are at least three things that distinguish the industrial revolution 4.0 compared to the previous industrial revolution. These three things are the reasons why the transformation that is happening right now is not an extension of the digital revolution, but rather a new transformation revolution. First, innovation can be developed and spread far faster than before. The speed of the occurrence of breakthroughs in this era occurred on an exponential scale and no longer on a linear scale. Second, the reduction in marginal production costs and the emergence of platforms that can unite and concentrate several scientific fields have been proven to increase work output. Including the entire production, management, and governance system. Third, the global revolution (information technology) has a significant influence in every field of industry, and even at the system level in many other business sectors (Tjandrawinata, 2017). Therefore, companies must follow the development of information technology to be able to maintain and win the competition (Kurniawan and Diptyana, 2011). Furthermore, Kurniawan and Diptyana (2011) explained that it is not only large companies that utilise information technology, but micro, small and medium enterprises (SMEs) also utilise them to play an important role in their efforts to influence the country's economic and industrial growth (Kurniawan and Diptyana, 2011).
SMEs has a significant contributor to the Indonesian National Economics. Besides that, SMEs are also referred to as one of the pillars of economic growth in Indonesia. The contribution of SMEs sector to the gross domestic product (GDP) has been stretching in the last five years (Mutmainah, 2016;Rekarti and Doktoralina, 2017). According to data from the Ministry of Cooperatives and Small and Medium Enterprises (SMEs) in 2016-2017 noted the contribution of the SMEs sector increased from 57.84% to 60.34% (Kemenkop-UKM RI, 2018). In addition, the SMEs sector has also assisted in absorbing domestic workers. Employment absorption in the SMEs sector grew from 96.99% to 97.22% in the last five years (Mutmainah, 2016).
According to Rekarti, Bahari, Zahari, Doktoralina, and Ilias (2019); Rudiantoro and Siregar (2012), the enormous potential of SMEs is often constrained by capital problems to develop businesses. As a solution, the government runs the SMEs financing program. One such program is the People's Business Credit (KUR). However, the KUR program did not meet the targets and was not well utilised. One reason is the lack of adequate information in the form of financial statements produced. By SMEs, so that banks as KUR suppliers in lending tend to be more careful. Some (Rudiantoro and Siregar, 2012). The importance of applying accounting knowledge in the financial management of SMEs is considered to be poorly understood by entrepreneurs. There are still many small entrepreneurs who have not recorded their business financial statements properly. Some even did not take notes (Susilawati, Yuliati, and Khotmi, 2018). Then, the Government of Indonesia 17/2013 stated that there are obligations for small business actors to do accounting records. One way to deal with technical problems in the financial sector in SMEs is through the adoption of information technology (Kurniawan and Diptyana, 2011;Pramuka, 2012). However, this transition also does not always bring good effects for SMEs. According to Rahmawati and Puspasari (2017), there are also SMEs who consider manual recording to be more effective because given the size of the business activity concerned is relatively small. In Addition, most SMEs feel that the business they are involved in is a small business that is run only to fulfill their daily needs (Rahmawati & Puspasari, 2017). Thus, many small companies do not have a good financial accounting system.
SMEs are too focused on how to make unique products, while accounting and view of financial systems as a second choice, not as a priority. Then, SMEs also assume that the provision of accounting records will waste time and money. They feel disturbed by financial documents and think that the most important thing is to get the maximum profit (Putri, 2017). SMEs entrepreneurs who have large transactions expressed the opposite view, and they assume that it is not easy to process daily report that much data manually (Aboelmaged, 2014;Ali, Rahman, & Ismail, 2012;Burgess & Paguio, 2016). Aboelmaged (2014); Ali, Rahman, and Ismail (2012); Burgess and Paguio (2016) prove that business characteristics, the ability to innovate, external influences, compatibility have a significant effect on SMEs decisions in upgrading software. A computer application (software) program helps meet the needs of SMEs in managing data effectively and efficiently (Lestiawan & Mahmud, 2014). There are many types of accounting software but do not provide convenience in implemented for SMEs in Indonesia. Therefore, several factors considered in choosing software are some of these factors are price, performance, stability, flexibility, implementation, adjustment, and vendor support (Philip, 2001). Based on the problems that have been explained before, this research wants to explore the factors developed by Philip (2001) that influence the selection of accounting software by SMEs. Therefore, this study explores the use of accounting software by adding elements to the pattern of accounting activities carried out by SMEs based on the value of the transaction activity.

Small Medium Entrepreneurship
According to Law No.20/2008, SMEs is distinguished by several criteria through its net worth. First, IDR 50 million to IDR 500 million, and that does not include land and business premises, and the total annual sales are at most around IDR 300 million. Second, IDR 50 million to IDR 500 million and does not include land and business premises, and the total annual sales are at most around IDR 300 million to IDR 2.5 billion. Third, A medium-sized business is a business that has a wealth of more than Rp 500 million to Rp. 1 billion excluding land and business premises, and total annual sales of a maximum of Rp. 2.5 billion to Rp. 50 billion.
Meanwhile, the Central Statistics Agency defines MSMEs based on the quantity of labour. Small business is a business that has a workforce of 5 people up to 19 people, while medium business is a business that has a workforce of 20 people up to 99 people. Whereas The Central Bank of Indonesia (2015), micro-business is a business run by the poor, owned by families, with local resources and using simple technology, and the business field is easy to get in and out. The amount of the worker, the assets of SMEs Rp 200 million excluding land and business buildings with an annual turnover of less than Rp 1 billion. In addition to its management mandatory by Indonesians and not a legal entity. Meanwhile, medium-sized businesses are defined as having assets of less than Rp. 5 billion for the industrial sector, and assets less than Rp 600 million excluding land, buildings with an annual turnover of less than Rp. 3 billion. Based on these definitions, SME is a form of productive economic enterprise, driven by individuals or business entities. In addition, he must have specific capital, limitations in business development, and not affiliated or controlled by the company.

Financial statements
Based on the Financial Framework and Financial Reporting Framework (KDPPLK) paragraph 7, the intended financial statements are part of the financial reporting process. The financial statements, i.e., including balance sheet, income statement, statement of changes in financial position (in cash flow statements, or cash flow statements), notes and other reports and explanatory material that is an integral part of the financial reporting. Based on the analysis, the existing elements of a financial statement can help decision-makers (Putra, 2018;Setiyawati & Doktoralina, 2019).

Accounting Information
According to Riahi-Belkaoui (2011), the accounting information as quantitative information about economic entities that are useful for economic decision making and determining choices between alternative actions. Thus, accounting information can be used for strategic planning, management oversight, and operational oversight (Susilawati, Yuliati, and Khotmi, 2018). Based on SAK EMKM (2018) paragraphs 2.2 and 2.8, accounting information must meet the criteria for disclosing economic benefits associated with financial account items that can be sure to flow into or out of the entity so that account items have costs that can be measured reliably.

Accounting Information System (AIS) at SMEs
AIS as a collection (integration) of sub-systems processes transaction data related to financial problems into financial information (Susanto, 2013). AIS also identifies data sets to communicate information to two or more components that interact with each other in achieving goals (Romney, Steinbart, and Cushing, 2015). Therefore, in line with business development that requires timeliness and accuracy in various assessment standards, computer computers are considered as the right choice (Aboelmaged, 2014).

Accounting Information System User Capability
Great personal ability will spur users to use accounting information systems. Cause's the impact of its use of AIS more effective and can increase the satisfaction of user (Kurnia, Choudrie, Mahbubur, & Alzougool, 2015;Purwati & Suparlinah, 2017;Romney et al., 2015;Susanto, 2013). The satisfaction of a user can see from the performance, information, economy, control, efficiency, and service (Susanto, 2013). The factors that influence a company in selecting a set of accounting software in general, i.e., Price, Performance, Stability, Flexibility, Implementation, Customization and Vendor support or support from sellers (Maharseni, 2018;Purwati & Suparlinah, 2017;Romney et al., 2015;Susanto, 2010). The vendor support is all vendor-related activities regarding facilities provided by suppliers or sellers including telephone network installations, regular checks, and guarantees for repairs caused by virus attacks (Romney et al., 2015;Susanto, 2010).

Research model
This research is quantitative research with a deductive approach, with the descriptive statistical test (Ghozali, 2016;Sugiyono, 2015). The data analysed in this study were in the form of individual respondents' opinions. Collection and analysis techniques in the way of views of the subjects studied through the distribution of questionnaires.

Population and Sample
The population in this study were 31,116 SMEs registered in Department of SME and Trade of DKI Jakarta Province (2017). The technique of cluster Random Sampling is used. A total of 850 SMEs became the study sample (Sekaran & Bougie, 2016;Sugiyono, 2015).

Data Types and Sources
The type of data used in this study is quantitative data. Data sources used in this study are: (a) Primary Data, is data obtained from the first source both from individuals such as the results of a questionnaire (questionnaire) that has been answered by respondents then collected again by researchers; ( b) Secondary data is data that has been collected by other parties and published by the data user community (Sekaran & Bougie, 2016;Sugiyono, 2015).

Definition of Variable Operations
The dependent variable of this study is the use of accounting software that is directly operated by the user (respondent). The measure of this variable is, through questions related to the use of accounting software on Operational of SMEs. The research variables consist of five types of variables that are considered to influence the decision to use accounting applications, such as: 1) Education level, i.e., elementary school (SD), junior high school (SMP), high school (SMU) or equivalent, Diploma (DIII), Bachelor (SI) and Postgraduate (S2 & S3). (Rudiantoro & Siregar, 2012). 2) Company Size. Determining the business size index is to give points to the answers in the questionnaire for questions about the number of employees, company assets, and company sales per year (Rudiantoro and Siregar, 2012). 3) Business duration is shown based on the age of the company based on the year since the establishment of the company up to this research (Rudiantoro and Siregar, 2012). 4) Accounting knowledge is seen based on the formal educational background studied by the owners of SMEs (Rudiantoro and Siregar, 2012). 5) Technology Utilization, seen from the quality of the system, the quality of information, user satisfaction, and the total benefits of the accounting application (Safitri and Setiyani, 2016).

Description of Respondent Data
Profile of respondents in this study include a) gender, 33.3% male respondents and 66.7% female respondents; b) age, respondents are dominated between the ages of 31-40 years which is equal to 47.77%.

Description of the Education Level
The internal control variable consists of 1 question divided into four dimensions, i.e., Senior high school, Bachelor, Strata 2, or others. The following data explains the tendency of respondents' answers to the latest education level of SME owners.  (2019) Based on Table 1, respondents with a high school education level are the most respondents in the study, amounting to 22.82%, while those who have the lowest level of education S2 are 2%.

Description of Company Size
The company size variable consists of four questions divided into four dimensions based on the characteristics of SMEs. Between the asset dimensions included one question, the number of employees comprised of 1 item, and the sales turnover dimension consisted of 1 subject. The following will be presented trends of respondents' answers on the firm size with frequency distribution and percentage approaches. a. Asset Table 2 presents the recapitulation of respondents' responses submitted to measure company size variables through asset dimensions. This asset dimension consists of 1 question:  (2019) Based on Table 2 it can be seen that the respondents who had assets of Rp 50 million -Rp 500 million were the most respondents in the study, amounting to 49.86% while those who had assets <Rp50 million were the lowest respondents in this study amounting to 19.77%. Table 3 presents the respondents' responses proposed to measure company size variables through the dimensions of the number of employees employed. This asset dimension consists of 1 question, namely:  Table 3, it can be seen that respondents who have 5-9 employees are the most respondents in the study, amounting to 59.88% while those who have 20 -99 people are the lowest respondents in this study, amounting to 2.71%. Table 3 presents the recapitulation of respondents' responses proposed to measure the company size variable through the dimensions of the total sales turnover value. This asset dimension consists of 1 question, namely:  (2019) Based on Table 4, it can be seen that respondents who have a sales turnover value of Rp 300 million -Rp 50 billion are the most respondents in the study, amounting to 52.47% while those who have the sales turnover value are the lowest respondents in this study amounting to 1.41%.

Description of the Length of Business
Variable length of business consists of 1 question divided into 1 dimension, namely the dimension of the length of the business consisting of 1 question. Table 5 about the recapitulation of respondents' responses submitted to measure the company size variable through the dimensions of the length of the business.  (2019) Based on Table 5, it can be seen that respondents who have a business length of 6-10 years are the most respondents in the study, amounting to 29.17%, while those who have a business life> 15 years are the lowest respondents in this study amounting to 5.76%.

Description of Accounting Knowledge
The accounting knowledge variable based on educational background consists of 1 question divided into one dimension, namely the educational background dimension, including accounting, management, economics, and others.  (2019) Based on Table 6 it can be seen that respondents who have accounting knowledge based on the educational background are only 16.71%, the majority of respondents have an educational experience in other economics that is equal to 40.94% while in addition to economics it is the minority field of respondents that is equal to 11.29.

Overview of Utilization of Information Technology
The information technology utilisation variable consists of 4 questions divided into eight dimensions, which based on experience using Accounting Computer applications, accounting applications used, and respondents' explanation of choosing the accounting application.   (2019) Based on table 9, 62.96% of respondents use accounting applications because of the needs of their business activities. Furthermore, 91.98% of respondents stated the ease of use of accounting applications determines the selection of accounting applications. As much as 73.15% of respondents reported that the price of a more affordable accounting application license affects a variety of accounting applications. The quality of the results of financial statements produced by accounting applications determines the selection of accounting applications used from 58.02% of respondents. Meanwhile, application security has not been a determining factor in choosing accounting applications where 57.72% of respondents not to prioritise the security aspects of applications in the selection of accounting applications.

Conclusions & Suggestion
Based on the results of the study note, the level of education, company size, length of business, and accounting knowledge is not a determining factor in the selection of accounting applications. SMEs use accounting applications because of the needs of their business activities, ease of use of accounting applications, the price of more affordable accounting applications, the quality of the results of financial statements produced by accounting applications while application security has not been a determining factor in choosing accounting applications. Suggestion for academics, the results of this study can be used as additional references to enrich knowledge about the factors that influence the use of accounting applications. Limitations in this study include the selection of respondents who are still uneven and knowledge of accounting that is considered not to meet standards. For future research, it is advisable to choose respondents who have accounting knowledge and use more in-depth statistical methods.