DETERMINANTS OF THE USE OF ACCOUNTING INFORMATION IN MSMEs IN THE JATIWARINGIN AREA

Abstract

The purpose of establishing a business is for the long term if it is supported in an inclusive manner, achieving the goals of the parties involved in the business activities. This is where the role of the accounting system is needed in a business, the role of accounting includes as a tool for calculating and interpreting financial activities. This study aims to analyze the influence of accounting knowledge, entrepreneurial spirit and educational background on the use of accounting information in business decision making. This research is carried out on the community of MSME actors in the RW 05 Pangkalan Jati V area. This study used a sample of 114 respondents using the simple random sampling method, with a measurement scale using a likert scale. Thedata analysis used is a partial regression analysis processed with the SmartPLS version 3.0 program. The results showed that accounting knowledge, entrepreneurial spirit and educational background had a significant positive effect on business decision making.  It states that, in fact, accounting knowledge is very important in decision making when entrepreneurship, because an entrepreneur must be able to record company financial transactions and separate between capital for the company and personal money. And someone who has a high entrepreneurial spirit tends to always try to develop their business, make new innovations and will use accounting information to see how the business is developing.  Likewise, with the background of education, if you have a higher education, the better it will be in business decision making.