Planned Behavior Drivers of Accounting Recordkeeping for SMEs in Indonesia Dr. Margarani Pinasti, SE, M.Si., Ak. Dr. Adi Wiratno, M.Si., Ak. Drs. Sukirman, M.Si., Ak. Abstract This study aims to explore drivers and develop the proposition of planned behavior drivers that effectively encourage small and medium enterprises (SMEs) to make accounting records. The approach that is used in this study is a qualitative study with grounded theory method. The data collection methods were done by in-depth interview and focus group discussion of SMEs in Banyumas Regency, Central Java, Indonesia. The result of coding analysis towards the in-depth interview and focus group discussion shows that there are three drivers that encourage SMEs to make accounting records: (1) the needs of accounting information for business decision making, (2) the demands from external parties regarding accounting information of SMEs, (3) the ability and existence of resources for accounting recordkeeping in SMEs. This study produces four proposition formulas of planned behavior drivers of accounting recordkeeping for SMEs. The result of this study formulated a planned behavior model of accounting recordkeeping for SMEs. The result of this study leads to implication that to encourage SMEs to make accounting records it is necessary to raise awareness of SMEs regarding their needs of accounting records for business decision making.
2 Keywords: accounting, intention drivers, planned behavior, recordkeeping, small medium enterprises Introduction Most of the small and medium enterprises (SMEs) in Indonesia do not implement accounting recordkeeping. This has been proved in research of Pinasti (2000, 2007), Wahyudi (2009), Ediraras (2010), Suhairi and Wahdini (2006) stated that most of SMEs in Indonesia have not used accounting as a tool to manage their business. Not only in Indonesia, but also in other countries where research have proved that most of SMEs do not use accounting information optimally for their decision making (Emsfors dan Holmberg, 2015; Collis and Jarvis, 2002; Sian and Roberts, 2009; Laitinen, 2009; Bergström dan Lumsden, 1995; Laitinen, 2001; Johansson dan Samuelson, 1998; Shaw, 2006; Hanna dan Walsh, 2008). The absence of accounting recordkeeping in small and medium enterprises is one of the factors that inhibit the growth of their business. The information that generated from accounting recordkeeping is very useful for SMEs decision making. The accounting information can be an early warning system that will warn the manager of SMEs if there are some problems in certain area in their business. The implementation of SMEs accounting and ability of SMEs manager to use accounting information optimally can become the basis of effective decision making for the development of SMEs. Beside its importance for internal decision making, the accounting information is also important for stakeholders
3 such as creditor, investor, and government. The ability of SMEs to give accurate information regarding their business can affect creditor’s decision to give credits to SMEs. In relation with tax payment, the existence of accounting recordkeeping
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