The Effect of Accounting Knowledge, Education Level, and Information Technology Use on The Quality of Financial Reports of MSME’S in Lamongan Regency

Abstract

The preparation of quality financial reports remains a challenge for Micro, Small, and Medium Enterprises (MSMEs). Accurate financial information is needed to evaluate business conditions and support decision-making. However, limited understanding of accounting, educational background, and suboptimal utilization of information technology can affect the quality of the resulting financial reports. This study aims to analyze the influence of accounting knowledge, education level, and utilization of information technology on the quality of financial reports of MSMEs in Lamongan Regency. This study uses a quantitative approach with an associative research type. Research data were collected through distributing questionnaires to 350 MSMEs in Lamongan Regency. Furthermore, the data were analyzed using multiple linear regression with the help of IBM SPSS Statistics. The results show that accounting knowledge has a positive and significant effect on report quality. Education level also has a positive and significant effect on report quality. In addition, the utilization of information technology has a positive and significant effect on report quality. Simultaneously, the three independent variables have a significant effect on the quality of financial reports with a calculated F value of 185.391 and a significance level of <0.001. This study shows that improving the quality of MSME financial reports needs to be supported by strengthening accounting competencies, increasing educational capacity, and optimizing the use of information technology.