Predicting SME’s Intention to Adopt Accounting Software for Financial Reporting in Medan City, Indonesia

Abstract

According to North Sumatera University’s research in 2006, the main component in SME’s equity is owner’s equity. It’s showed that the SME operate their business with internal equity which is come from the owner’s equity. This fact will influence the development of Indonesian’s SME because most of the Indonesian’s SME have limited equity. Then, the Indonesian’s Government released so many programs to push the SME to access external funds. But, most of the Indonesian’s SME are bankable. The main reason for this condition is the incapability to produce financial statement. This research proposed an idea to create accounting software that is acceptable for SME. For that, a study to predict the intention to adopt this kind of software is urgently needed. This study aims to predict SME’s intention to adopt accounting software to prepare financial statement in Medan City, Indonesia, using UTAUT Model.

Keywords: SME, intention, accounting software