UTILIZATION OF THE AL-BASED ISLAMIC ACCOUNTING INFORMATION SYSTEM AS A SOLUTION FOR TRANSPARENCY AND EFFECTIVENESS IN FINANCIAL MANAGEMENT OF MSMES
Abstract
Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in the Indonesian economy, but they still face challenges in financial management, particularly related to transparency and effectiveness of financial reporting. The purpose of this study is to examine the use of an Artificial Intelligence (AI)-based Accounting Information System (AIS) with a sharia approach as a solution to increase transparency and effectiveness of MSME financial management. The research method used is a literature study by conducting an in-depth analysis of relevant literature and sources. The results of the study indicate that the implementation of an AI-based AIS can automate recording, improve the quality of financial reports, and support more appropriate decision-making, while the integration of sharia accounting principles ensures the alignment of financial governance with Islamic values. The main obstacles identified are limited human resources, implementation costs, and uneven technological infrastructure. The AI-Based Islamic Accounting System is presented as an innovative solution that supports MSMEs in increasing transparency and effectiveness of financial management in a sustainable manner, while still prioritizing sharia accounting principles.
References
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Putra, RR, & Lilis, SH (2022). Moderating Environmental Uncertainty on the Effect of Accounting Knowledge and Accounting Information Systems on the Performance of SMES. International Journal on Social Science, Economics and Art , 12(1) .
Rasyid, A., Ariani, D., Kusumaningati, ID, Indriadewi Atmadjaja, YV, & Mertha Agung Durya, NP (2024). Analysis of the Influence of Integrated System Development, Accounting Technological Updates, and Management Support on Accounting Information System Performance. Journal of Information and Technology , 6 (1), 235–239. https://doi.org/10.60083/jidt.v6i1.505
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Solikhatin, F. A, Saadah, N., & Agriyanto, R. (2024). Islamic economic principles and the adoption of accounting information systems: Perceptions of ease of use and usefulness in Indonesian MSMEs. Journal of Islamic Economics, Management, and Business (JIEMB) , 6 (1) .
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Triyuwono, I. (2011). Sharia Accounting: Perspective, Methodology and Theory . Rajawali Pers.
Yanti, E, Maulida, M, A., Yusnidar, C., & Akmal, S. (2023). Sharia-Based Accounting Information System in the Development of Integrated Cooperatives. International Journal of Economics Development Research, 4 (6) . https://doi.org/https://doi.org/10.37385/ijedr.v5i2.4273
Yoon, K., & Zhang, L. (2015). Big data as complementary audit evidence. Accounting Horizons , 29(2) . https://doi.org/10.2308/acch-5107
Aditya Darmawan, & Aditya Agung Nugraha. (2025). The Role of Accounting Information Systems in Improving the Efficiency and Transparency of Sharia Financial Reports. Sahmiyya Journal , 4 (1) .
Al-Matari, AS, Amiruddin, R., Aziz, R., Aziz, & Al-Sharafi, MA (2022). The Impact of Dynamic Accounting Information System on Organizational Resilience: The Mediating Role of Business Processes Capabilities. Sustainability (Switzerland) , 14(9) . https://doi.org/10.3390/su14094967
Asta, IW, & Olii, N. (2023). The Impact of the Implementation of Sharia Accounting on Company Value According to the Latest Developments in Sharia Accounting INTRODUCTION In the era of globalization and rapid social change , sharia accounting has become an increasingly important and attention-grabbing topic. Journal of Accounting Students , 2 (2), 270–281.
Baydoun, N., & Willett, R. (2000). Islamic corporate reports. Abacus , 36(1) .
Damayanti, D., Pia, A., Anggreni, SM, & Kurniawan, T. (2024). The Influence of Financial Literacy on the Effectiveness of MSME Financial Management in Makassar City. JIMS: Student Scientific Journal , 2 (1), 37–48.
Daniyati, D., Roni, & Anisa Sains, K. (2023). The Influence of Accounting Information Systems on the Performance of Micro, Small, and Medium Enterprises (Case Study in Karangmalang Village, Ketanggungan District, Brebes Regency). JIMPS: Scientific Journal of History Education Students , 8 (3), 1343–1352.
Daniyati, D., Roni, & Kharisma, AS (2023). The influence of accounting information systems on the performance of micro, small, and medium enterprises. JIMPS: Scientific Journal of History Education Students , 8 (3), 1343–1352.
Davenport, T.H., & Ronanki, R. (2020). Artificial Intelligence for the Real World. Harvard Business Review , 96(1) .
Davenport, T.H., & Ronanki, R. (2018). Artificial intelligence for the real world. Harvard Business Review , 96(1) .
Diah Rachmawatie Novida. (2025). The Evolution of Accounting Information Systems in the Digital Era: A Literature Review of Trends, Challenges, and Opportunities. Jurnal Minfo Polgan , 14 , 725–730.
Fitrah, M., Ashar, AI, & Rifani, RA (2025). Financial Management as a Guide to Facing Challenges. Amsir Community Service Journal , 3 (1), 19–24. https://doi.org/10.62861/acsj.v3i1.409
Fuadli, DK, & Padmantyo, S. (2024). JIMEA | MEA Scientific Journal (Management , Economics, and Accounting). MEA Scientific Journal (Management, Economics, and Accounting) , 8 (2), 38–51.
Haniffa, R., & Hudaib, M. (2001). A conceptual framework for Islamic accounting: The Shari'a paradigm . International Conference on Accounting, Commerce and Finance: The Islamic Perspective, University of Melbourne.
Hilia ANRIVA, D., Riau, M., Tuanku Tambusai, J., Delima, K., & Tampan, K. (2024). In Indonesia: A Thematic Analysis. Journal of Accounting , 13 (2), 97–109.
Indonesian Institute of Accountants (IAI). (2019). Sharia Financial Accounting Standards . Financial Accounting Standards Board-IA.
Indriyani, D., Gunawan Aji, Amalia Karimah, Pipit Fitriani, & Isna Amaliya. (2023). The Influence of Marketing Strategy, HR Competence, Financial Management, and Accounting Information Systems on Improving MSME Performance. Journal of Management Economics and Business Research , 2 (2), 184–193. https://doi.org/10.55606/jekombis.v2i2.1551
Issa, H., Sun, T., & Vasarhelyi, M. A. (2016). Research ideas for artificial intelligence in auditing: The formalization of audit and workforce supplementation. Journal of Emerging Technologies in Accounting , 13(2) . https://doi.org/10.2308/jeta-10511
Juniariani, NMS, & Rai , and NM (2020). Human Resources and Marketing Strategy in Measuring the Performance of Micro, Small, and Medium Enterprises (MSMEs). KRISNA Journal: Collection of Accounting Research , 11 (2), 148–154.
Karim, AA (2020). Fiqh Muamalah and the Sharia Financial System . Gema Insani.
Ministry of Cooperatives and SMEs of the Republic of Indonesia. (2023). MSME Statistics 2022–2023 [Dataset].
Kokina, J., & Davenport, T. H. (2017). The emergence of artificial intelligence: How automation is changing auditing. ournal of Emerging Technologies in Accounting , 14(1) . https://doi.org/10.2308/jeta-51730
Lewis, M. K. (2001). Islam and accounting. Accounting Forum , 25(2) . https://doi.org/10.1111/1467-6303.00058
Liya Alfi Fitriya. (2023). ANALYSIS OF THE IMPLEMENTATION OF ACCOUNTING INFORMATION SYSTEMS IN THE NAHDLATUL ULAMA ZAKAT, DONATION AND ALMS COLLECTION INSTITUTION OF SEMARANG CITY (LAZISNU SEMARANG CITY) . WALISONGO STATE ISLAMIC UNIVERSITY OF SEMARANG.
Lubis, IS, & Lufriansyah, L. (2024). The Influence of Accounting Information Systems on MSME Performance in Mediating the Quality of Financial Reports in Kisaran Barat District, Asahan Regency. Scientific Journal of Management, Economics, & Accounting (MEA) , 8 (1), 1456–1469. https://doi.org/10.31955/mea.v8i1.3866
Meilisa Amalia, M. (2023). The Influence of Accounting Information Systems, Financial Report Quality, and Decision-Making Effectiveness on MSME Performance in Jakarta. West Science Journal of Accounting and Finance , 2 (02), 32–42.
Muhammad Dharma Tuah Putra Nasution, Ahmad Rafiki, Yossie Rossanty, & Cut Kesuma Pahlufi. (2024). Exploring Small and Medium Enterprises' Intention to Adopt AI-Powered Chatbots in Halal Marketing Communications. IQTISHODUNA: Journal of Islamic Economics , 13 (1), 35–58. https://doi.org/10.54471/iqtishoduna.v13i1.2364
Mutoharoh, Winarsih, & Buyong, SZ (2020). Digitalization of Accounting Information Impact on MSMEs' Profitability and Productivity. Airlangga Journal of Accounting and Business Research , 5 (2) . https://doi.org/10.31093/jraba.v5i2.233
Novitasari, Zulfi Agha, R., Redyanita, H., Vidyasari, R., & Mahatmyo, A. (2023). The Effectiveness of Cloud Accounting Utilization in MSME Financial Management. Economics & Business , 22 (2), 209–216. https://doi.org/10.32722/eb.v22i2.6382
Nuril Firdaus, & Rohmawati Kusumaningtias. (2021). Accounting Information System Design at LAZIS Nurul Falah. Journal of Accounting and Management Economics , 20 (2) . https://doi.org/10.19184/jeam.v20i2.24273
Octiva, CS, Haes, PE, Fajri, TI, Eldo, H., & Hakim, ML (2024). Implementation of Information Technology in MSMEs: Challenges and Opportunities. Jurnal Minfo Polgan , 13 (1), 815–821. https://doi.org/10.33395/jmp.v13i1.13823
Pinuji, BS, & Khomsiyah. (2024). The Role of Artificial Intelligence Dimensions on Accounting Information System Efficiency: Case Study of a Sharia Banking Company in Indonesia. Dynasty International Journal of Economics, Finance & Accounting (DIJEFA) , 5 (2), 668–684.
Putra, RR, & Lilis, SH (2022). Moderating Environmental Uncertainty on the Effect of Accounting Knowledge and Accounting Information Systems on the Performance of SMES. International Journal on Social Science, Economics and Art , 12(1) .
Rasyid, A., Ariani, D., Kusumaningati, ID, Indriadewi Atmadjaja, YV, & Mertha Agung Durya, NP (2024). Analysis of the Influence of Integrated System Development, Accounting Technological Updates, and Management Support on Accounting Information System Performance. Journal of Information and Technology , 6 (1), 235–239. https://doi.org/10.60083/jidt.v6i1.505
Robiur Rahmat Putra, & Lilis, SH (2022). Moderating Environmental Uncertainty on the Effect of Accounting Knowledge and Accounting Information Systems on the Performance of SMES. International Journal on Social Science, Economics and Art , 12 (1), 1–9. https://doi.org/10.35335/ijosea.v12i1.74
Russell, S., & Norvig, P. (2021). Artificial intelligence: A modern approach (4th ed .). Pearson .
Sisilia Anyel Faridawati, Henrikus Herdi, & Paulus Libu Lamawitak. (2024). Analysis of the Implementation of Accounting Information Systems to Improve the Efficiency and Financial Security of MSMEs (Cafe Rindu Lokaria). Journal of Economics, Accounting, and Taxation , 1 (4), 189–215. https://doi.org/10.61132/jeap.v1i4.443
Solikhatin, F.A., Saadah, N., & Agriyanto, R. (2024). Islamic economic principles and the adoption of accounting information systems: Perceptions of ease of use and usefulness in Indonesian MSMEs. Management, and Business (JIEMB) , 6 (1), 135–154. https://doi.org/10.21580/jiemb.2024.6.1.23496
Solikhatin, F. A, Saadah, N., & Agriyanto, R. (2024). Islamic economic principles and the adoption of accounting information systems: Perceptions of ease of use and usefulness in Indonesian MSMEs. Journal of Islamic Economics, Management, and Business (JIEMB) , 6 (1) .
Tambunan, TTH (2020). Micro, Small, and Medium Enterprises in Indonesia: Key Issues . LP3ES.
Triyuwono, I. (2011). Sharia Accounting: Perspective, Methodology and Theory . Rajawali Pers.
Yanti, E, Maulida, M, A., Yusnidar, C., & Akmal, S. (2023). Sharia-Based Accounting Information System in the Development of Integrated Cooperatives. International Journal of Economics Development Research, 4 (6) . https://doi.org/https://doi.org/10.37385/ijedr.v5i2.4273
Yoon, K., & Zhang, L. (2015). Big data as complementary audit evidence. Accounting Horizons , 29(2) . https://doi.org/10.2308/acch-5107
Published
2025-10-15
How to Cite
R, Fransisca Dwi et al.
UTILIZATION OF THE AL-BASED ISLAMIC ACCOUNTING INFORMATION SYSTEM AS A SOLUTION FOR TRANSPARENCY AND EFFECTIVENESS IN FINANCIAL MANAGEMENT OF MSMES.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 11, n. 1, p. 353-362, oct. 2025.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/3397>. Date accessed: 15 may 2026.
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Articles
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