Financial Literacy in Financial Management and FAS Implementation: AIS as Moderator

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are the drivers of a country's economic activities. However, socialization and training on understanding to be able to do good business management is still lacking. MSME actors often experience difficulties in developing their businesses because they do not have the ability to keep accounting records. Technological developments are increasingly rapid and sophisticated, forcing many businesses to adapt. Increasingly advanced technology is very beneficial for business people to be able to improve performance and get maximum profits. This research was conducted to find out how much influence financial literacy has on financial management and implementation of SAK in MSMEs in the City and Regency of Tegal. In addition, the SIA variable is used as a moderating variable to find out whether SIA can moderate the effect of financial literacy on financial management and implementation of SAK. This research has contributed to the local government regarding the quality and development of MSMEs. As a result of the study's findings, financial management and SAK implementation were both found to be impacted by financial literacy, SIA cannot moderate the relationship of financial literacy to financial management, and SIA cannot moderate the relationship of financial literacy to SAK implementation.