The Effect of Accounting Information Systems, Financial Literacy, and Cost Control on Financial Performance

Abstract

Rapid advances in digital technology have transformed various business activities, including those of micro, small, and medium-sized enterprises (MSMEs). In an increasingly competitive business environment, MSMEs need to manage their resources and finances efficiently to ensure the sustainability of their businesses. Financial performance serves as a key indicator of business success, as it reflects the extent to which a company is able to utilize its resources to achieve its set goals. The objective of this study is to analyze the impact of accounting information systems, financial literacy, and cost control on the financial performance of MSMEs in the Johar Baru subdistrict of Central Jakarta. This study employed a quantitative approach by collecting primary data through a questionnaire distributed to MSME owners and managers. The sample was determined using the Lemeshow formula and consisted of 110 respondents. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS version 4. The results of this study indicate that accounting information systems, financial literacy, and cost control have a positive and significant impact on the financial performance of MSMEs. These findings confirm that the implementation of an effective accounting information system, a good understanding of financial literacy, and efficient cost control practices can support improved financial performance. This study is expected to serve as a reference for SME owners, government agencies, and related organizations.