THE INFLUENCE OF ACCOUNTING DIGITALIZATION ON FINANCIAL REPORT EFFICIENCY IN INDONESIAN MIGRANT WORKERS' MSMES IN MALAYSIA
Keywords:
accounting digitalization, financial reporting efficiency, MSMEs, Indonesian migrant workers, MalaysiaAbstract
This study aims to examine the effect of accounting digitalization on the efficiency of financial reporting in Micro, Small, and Medium Enterprises (MSMEs) managed by Indonesian Migrant Workers in Malaysia. The phenomenon of the increasing number of migrant workers running their own businesses abroad is an important highlight in the context of effective and efficient financial management. Using the literature review method, this study collects and analyzes various previous studies related to the implementation of digital technology in accounting practices, especially in the MSME sector. The results of the study indicate that accounting digitalization can have a positive impact on the efficiency of financial reporting by increasing the speed of recording, data accuracy, and ease of access and tracking of financial information. In addition, the adoption of digital technology is also considered to minimize the risk of manual errors and increase transparency in the reporting process. These findings contribute to the understanding of the importance of digital transformation in the financial management of MSMEs of Indonesian Migrant Workers abroad, as well as being the basis for the development of relevant policies and training.
Downloads
References
Agustina, Y., & Augustine, Y. (2024). Towards a Maturity Model for Accounting and Financial Sustainability in Indonesian MSMEs: Insights from a Systematic Literature Review. Indonesian Journal of Sustainability Accounting and Management, 8(1), Article 1. https://doi.org/10.28992/ijsam.v8i1.970
Azizah, S. N., Suradi, Koeswinarno, Fakhruddin, M., & Yuliani, I. (2024). The Influence of Digital Transformation in Speeding Up the Empowerment of the Muslim Women’s Economy to Improve the Performance of Micro, Small, and Medium Enterprises (MSMEs) in Ponorogo. In A. Rafiki, V. Ramadani, L.-P. Dana, & S. E. Hidayat (Eds.), Strategic Islamic Business and Management: Solutions for Sustainability (pp. 71–107). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-61778-2_5
Cagle, M. N. (2020). Reflections of Digitalization on Accounting: The Effects of Industry 4.0 on Financial Statements and Financial Ratios. In U. Hacioglu (Ed.), Digital Business Strategies in Blockchain Ecosystems: Transformational Design and Future of Global Business (pp. 473–501). Springer International Publishing. https://doi.org/10.1007/978-3-030-29739-8_23
Constraints of Small and Medium Enterprises Owned by Chinese Immigrants in Malaysia—ProQuest. (n.d.). Retrieved May 29, 2025, from https://www.proquest.com/openview/a07fdf4bddb6561b8c49dcdb16da42c9/1?pq-origsite=gscholar&cbl=2026366&diss=y
Hamdi, S., Inderasari, O. P., Syarifuddin, S., & Sari, I. F. (2023). The Socio-Entrepreneurship Potential of Migrant Workers during the Covid-19 Era: A Mapping Study in Suralaga, East Lombok. Jurnal Kawistara, 13(2), Article 2. https://doi.org/10.22146/kawistara.78059
Hamundu, F. M., Husin, M. H., Baharudin, A. S., & Khaleel, M. (2020). Intention to Adopt Cloud Accounting: A Conceptual Model from Indonesian MSMEs Perspectives. The Journal of Asian Finance, Economics and Business, 7(12), 749–759. https://doi.org/10.13106/jafeb.2020.vol7.no12.749
Hendrawan, S. A., Chatra, A., Iman, N., Hidayatullah, S., & Suprayitno, D. (2024). Digital Transformation in MSMEs: Challenges and Opportunities in Technology Management. Jurnal Informasi Dan Teknologi, 141–149. https://doi.org/10.60083/jidt.v6i2.551
Kaewboonchoo, O., Isahak, M., Susilowati, I., Phuong, T. N., Morioka, I., Harncharoen, K., Low, W. Y., & Ratanasiripong, P. (2016). Work Ability and Its Related Factors Among Workers in Small and Medium Enterprises: Comparison Among Four ASEAN Countries. Asia Pacific Journal of Public Health, 28(5), 438–449. https://doi.org/10.1177/1010539516651957
Khulsum, U., Utami, P., Zuhriyah, N. A., Basrowi, B., & Yunos, M. S. A. B. (2024). IMPROVING LITERACY AND UNDERSTANDING OF SHARIAH ECONOMICS FOR INDONESIAN MIGRANT WORKERS IN PENANG. International Journal of Engagement and Empowerment (IJE2), 4(2), Article 2. https://doi.org/10.53067/ije2.v4i2.169
Latifah, L., Setiawan, D., Aryani, Y. A., & Rahmawati, R. (2020). Business strategy – MSMEs’ performance relationship: Innovation and accounting information system as mediators. Journal of Small Business and Enterprise Development, 28(1), 1–21. https://doi.org/10.1108/JSBED-04-2019-0116
Lestari, E. D., Abd Hamid ,Nadiah, Shamsuddin ,Roszilah, Kurniasari ,Florentina, & and Yaacob, Z. (2024). Investigating the factors of SMEs’ business resilience in the post-pandemic crisis of COVID-19 with technology adoption as a quasi-moderator: A multigroup analysis of Indonesian and Malaysian SMEs. Cogent Business & Management, 11(1), 2301135. https://doi.org/10.1080/23311975.2023.2301135
M, P. M., & Anisyah, N. (2024). MSMEs Upgrade with The Concept of Green Accounting and Digitalization: Study Literature Review. JIMU:Jurnal Ilmiah Multidisipliner, 2(02), Article 02.
Mayasari, R., Febriantoko, J., Zamheri, A., Prabowo, H., & Danasasmita, W. M. (2023a). Revitalizing Indonesian Migrant Workers: Empowering Human Capital and Financial Independence. International Journal of Community Care of Humanity (IJCCH), 1(3), Article 3.
Mayasari, R., Febriantoko, J., Zamheri, A., Prabowo, H., & Danasasmita, W. M. (2023b). Revitalizing Indonesian Migrant Workers: Empowering Human Capital and Financial Independence. International Journal of Community Care of Humanity (IJCCH), 1(3), Article 3.
Mustafa, S. A. (2023). The Effect of Digitalization on Improving the Timeliness of Financial Reporting: Evidence from Egyptian Listed Companies. المجلة العلمية لکلية التجارة (أسيوط), 43(79), 315–343. https://doi.org/10.21608/sjcf.2023.209750.1047
Omar, S. S., Nayef, J. M., Qasim, N. H., Kawad, R. T., & Kalenychenko, R. (n.d.). THE ROLE OF DIGITALIZATION IN IMPROVING ACCOUNTABILITY AND EFFICIENCY IN PUBLIC SERVICES.
Phornlaphatrachakorn, K., & Na Kalasindhu, K. (2021). Digital Accounting, Financial Reporting Quality and Digital Transformation: Evidence from Thai Listed Firms. The Journal of Asian Finance, Economics and Business, 8(8), 409–419. https://doi.org/10.13106/jafeb.2021.vol8.no8.0409
Puspitawati, L. (2023). User Competence And Business Digitalization For The Successful Performance Of The Financial Statements. JURNAL AKUNTANSI. https://www.ecojoin.org/index.php/EJA/article/view/1198
Ratanasiripong, P., Kaewboonchoo, O., Bell, E., Susilowati, I., Isahak, M., Harncharoen, K., Nguyen, T., & Low, W. Y. (n.d.). Depression, Anxiety and Stress among Small and Medium Enterprise Workers in Indonesia, Malaysia, Thailand, and Vietnam.
Rizal, A., Munawaroh, U., Asuhaimi, F. A., Munandar, A., & Susilo, A. (2023). Determinant of Financial Literacy on Indonesian Migrant Employees in Malaysia. Falah: Jurnal Ekonomi Syariah, 8(1), Article 1. https://doi.org/10.22219/jes.v8i1.24245
Scafarto, V., Dalwai, T., Ricci, F., & della Corte, G. (2023). Digitalization and Firm Financial Performance in Healthcare: The Mediating Role of Intellectual Capital Efficiency. Sustainability, 15(5), Article 5. https://doi.org/10.3390/su15054031
Suryanto, T., & Sisdianto, E. (n.d.). DETERMINANT FINANCIAL MANAGEMENT BEHAVIOR OF INDONESIAN MIGRANT WORKERS IN MALAYSIA. Humanities and Social Sciences.
Tindage, J., Manurung, T., & Manuhutu, M. A. (2025). The Effect of Accounting Information System Implementation on Internal Control Effectiveness in Sorong City MSMEs. International Journal of Health, Economics, and Social Sciences (IJHESS), 7(2), Article 2. https://doi.org/10.56338/ijhess.v7i2.7351
Wardi, J., N, A., Siswati, L., Yandra, A., & Kadri, H. B. (2024). MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) FINANCIAL MANAGEMENT IN INDONESIA AND MALAYSIA: A COMPARISON. Jurnal Ilmiah Ekonomi Dan Bisnis, 21(1), 139–151. https://doi.org/10.31849/jieb.v21i1.17184
Zuliansyah, A., Ghofur, R. A., & Kurniawan, A. (n.d.). LITERATION DIGITAL BASED FINANCIAL REPORTING FOR INDONESIAN WORKERS IN MALAYSIA. Humanities and Social Sciences.
