QRIS Adoption, Ease of Financial Recording and Accountability of Financial Reports: A Study on MSMEs in Yogyakarta City

This paper examines the role of account ownership, device usage, and payment methods to QRIS adoption that subsequently influence the ease of financial recording and the accountability of financial reports. We analyze relationship using Structural Equiation Modeling. The dataset is obtained from 200 MSMEs in Yogyakarta. As hypothesized; we obtain positive relationship between company account ownership, device usage, and payment methods on QRIS adoption. Subsequently the adoption of QRIS also improve the ease Financial Recording and Financial Accountability. Our study revealed insights for beneficial further adoption of QRIS for MSMEs toward the nation.


INTRODUCTION
In this study, we aim to identify whether the adoption of QRIS has a positive influence on the ease of financial recording and financial report accountability.This issue is crucial to identify because enhancing time efficiency in administrative matters is not only about saving time, but technology utilization also reduces the risk of errors and ensures accurate financial reporting, because QRIS adoption can enhanced efficiency and financial transparency through accounting knowledge (Sarma Dhulipala et al., 2022).Furthermore, the advancement of cloud computing has enabled businesses to access their financial reports from anywhere, at any time.This means remote teams can collaborate on financial reporting, making the process more collaborative and efficient.
This issue is highly significant, especially for SMEs in Indonesia, as the contribution of MSMEs to the national GDP reaches around 61 percent, while they absorb 97 percent of the total workforce (Coordinating Ministry for Economic Affairs of the Republic of Indonesia, 2022).
Although the use of QRIS is rapidly increasing in Yogyakarta city, there are still obstacles in its implementation, particularly due to the relatively low level of financial literacy among the Indonesian population.Many MSME operators do not yet understand or know about QRIS, and they have not consistently maintained financial records.Studies on QR Code adoption for MSMEs have been conducted.(Ledi et al., 2023) discuss the influence of QR Code on the performance of MSMEs in developing countries.Studies on fintech product applications for MSMEs have been conducted.(Bagale et al., 2021) discuss the use of information technology in accounting records for MSMEs.Other research has also been conducted; a previous study by (Amboningtyas et al., 2019) discusses the use of Android-based financial applications in the financial reports of MSMEs, while (Wiratama, 2019) examine the application of the Android-based financial application "Si Apik" in the preparation of financial reports for MSMEs.However, from the previous research, there is no evidence of the moderating role of accounting knowledge that is believed to contribute to the influence of QRIS usage on accounting records by MSME operators.(Dwivedi et al., QRIS Adoption, Ease of Financial Recording and Accountability of Financial Reports: A Study on MSMEs in Yogyakarta City e-ISSN: 2809-8862 p-ISSN:  Adrie Handria, Moch.Doddy Ariefianto 2 2019) build a study, the psychological factors that influence the intentions and behaviors of MSMEs in adopting QRIS payment technology.Thus, it facilitates the steps to enhance QRIS adoption and supports the overall development of the MSME sector.Hence, this study is conducted to present findings from a different perspective.
The questions in this study are whether account ownership, device usage, and the payment methods used can influence QRIS adoption?And does QRIS adoption affect financial recording and financial accountability?
To answer the above question; we set up an empirical design as follows.The relationship is analyzed with Structural Equation Modeling and estimated with Partial Least Square.The data used consists of primary data collected through questionnaires from 200 SME operators in Yogyakarta.The sample size is determined using Slovin's calculation formula, where n = N / (1 + (N x e²)), considering a population size of 342,000 MSMEs and a tolerance error of 7%.
Supported by hypotheses and questionnaire data analysis using the mentioned method, it is believed that company account ownership, device usage, and payment methods used can have a positive influence on QRIS adoption.Additionally, the use of QRIS in sales transactions also impacts the ease of SME operators in accurate and trustworthy financial record keeping.
QRIS stands for Quick Response Code Indonesian Standard, which combines various types of QR codes from different fast, reliable, and trustworthy payment system service providers.QRIS is mandated for implementation by all payment system service providers that utilize QR Code Payments (Bank Indonesia, nd).QRIS has gained popularity in Indonesia due to its practicality and user-friendliness.Data from Bank Indonesia reveals that out of 6 million retail merchants in 34 provinces, 480 districts/cities have adopted QRIS, with 85% of customers being MSME participants.QRIS is also utilized across various sectors, such as tax payments, driver's license issuance, charitable donations, and the operations of market vendors, restaurants, hotels, and other businesses (Sari & Adinugraha, 2022).
Account Ownership can influence the use of digital payments as having a bank account can be a prerequisite for utilizing most digital payment services.Currently, many digital payment services require users to link their bank accounts to the application or platform used for transactions (Sari & Adinugraha, 2022).
Access and Technology can be crucial tools in accessing digital payment applications.In some cases, SMEs may need computer devices to access more complex digital payment services, such as online payment systems for e-commerce or digital payment systems for B2B transactions (Listiawati et al., 2022).
Payment Methods are ways to conduct payment transactions between customers and SMEs.Some common payment methods used by SMEs include cash payments, bank transfers, and payments through QR codes.Cash payment is the most commonly used payment method in various countries, including Indonesia.However, the use of digital payments, such as bank transfers and payments through QR codes, is becoming more popular and increasing alongside technological advancements and improved accessibility to digital payment services (Chaveesuk, S., Khalid, B., & Chaiyasoonthorn, W., 2021) There is a relationship of interest of Account Ownership, Device Usage, and Payment Methods, this implies that companies with higher ownership of accounts, greater device usage, and diversified payment methods may be more inclined to adopt QRIS for their transactions.
Based on the theoretical and empirical descriptions above, this elaborates on how the Account ownership, Device Usage, and Payment Method can affects to QRIS Adoption.The captured hypotheses are as follows: Hypothesis 1: Account ownership has a positive influence on QRIS adoption.Hypothesis 2: Device usage has a positive influence on QRIS adoption.Hypothesis 3: Payment methods have a positive influence on QRIS adoption.
Ease to Financial Recording refers to the ability and ease of compiling and recording a company's financial transactions accurately, efficiently, and effectively, enabling timely and reliable financial statements.The indicators used include the availability of userfriendly accounting software, simple chart of accounts usage, and straight forward cash book utilization (Lanlan, Z., Ahmi, A., & Popoola, O. M. J. (2019).
Financial Reporting Accountability refers to the obligation and responsibility of SMEs to present accurate and transparent financial statements.The indicators used are Information Quality, compliance with accounting standards, transparency, openness, and accountability.
Transaction QRIS payment processes can be easily monitored, providing significant assistance to MSMEs while also eliminating the need for consumers to handle cash payments (Dubey et al., 2020).QRIS substantiates this, as merchants not only receive transactions from service providers but also from various other integrated sources.The benefits serve as a gauge for the quantity and diversity of applications used, resulting in user preferences to explore similar E-Wallet applications.On the other hand, financial report accountability can be influenced by digital QR Code payments.demonstrating how QRIS can enhance the quality of financial recording and reporting (Luh et al., n.d.).
QRIS Adoption and SME Operator Ease are suggests that as QRIS adoption increases, SME operators may find it easier to manage their financial records effectively.A connection between the adoption of QRIS and several outcomes, including increased financial efficiency through diversified payment methods and better financial record keeping for SME operators.
Based on the theoretical and empirical descriptions above, this elaborates on how the utilization of QRIS in financial transactions affects the ease of financial recording and financial report accountability.The captured hypotheses are as follows: Hypothesis 4: QRIS usage affects the ease of financial recording.Hypothesis 5: QRIS usage affects financial report accountability.Hypothesis 6: Ease of financial recording affects financial report accountability.QRIS adoption, payment methods positively affect QRIS adoption, QRIS usage affects the ease of financial recording, QRIS usage affects financial report accountability, and ease of financial recording affects financial report accountability.

METHOD
Present the materials, methods, survey, questionnaire etc., used for the study.Author/s should explain whether this study is experimental, review study, or simulationbased or survey-based.Discuss software and hardware used during the study with their brand names.Mention all research conditions, assumptions, and theories followed.This section should be easy enough for any reader to repeat the study under similar conditions.
This research employs a quantitative approach to examine the influence of non-cash financial transactions using QRIS on the ease of financial recording and financial report accountability.Primary data is collected through questionnaire distribution with a 1-5 scale to MSMEs in Yogyakarta city.
The sample determination technique used is purposive sampling.The study is conducted among MSMEs in 13 districts in Yogyakarta city In accordance with the number of districts in Yogyakarta classified as Type A, which are districts with a heavy workload.The sample is taken based on Slovin's calculation formula n = N / (1 + (N x e²)), where the population size is 342,000 MSMEs with a tolerance error of 7%, resulting in a sample size of 200 samples.Data is collected through the use of questionnaires distributed to respondents selected through purposive sampling.This technique allows for the selection of specific or specialized sample members with particular considerations.In this study, the examined variables consist of independent and dependent variables.The dependent variable is the usage of QRIS, while the independent variables include account ownership, device usage, payment methods, ease of financial recording, and financial report accountability of MSMEs in the Yogyakarta Special Region.QRIS (Quick Response Code Indonesian Standard) is the national standard for electronic payments using QR codes, introduced since [year], with indicators of transaction volume and merchant count (Sari & Adinugraha, 2022).Ease of financial recording refers to the ability and ease of accurately, efficiently, and effectively preparing and recording company financial transactions so that financial reports can be presented in a timely and reliable manner.Indicators used include the availability of user-friendly accounting software, simple chart of accounts usage, and use of a simple cash book (Mohd Sam et al., 2012).Financial report accountability refers to the obligation and responsibility of MSMEs to present accurate and transparent financial reports.Indicators used encompass information quality, compliance with accounting standards, transparency, openness, and accountability.
The data analysis method used in this study is descriptive and Structural Equation Modeling -Partial Least Square (SEM-PLS).The purpose of using these methods is to identify the influence of six variables under study: account ownership, device usage, payment methods, QRIS adoption, ease of financial recording, and financial report accountability of MSMEs in Yogyakarta city.This study involves quantitative data analysis with several testing steps.
The initial step involves testing the research instruments, including validity and reliability tests.Validity testing is used to assess whether the questionnaire questions can measure the intended variables.A questionnaire is considered valid if the calculated r-value > the critical r-value or the p-value < 0.05.Subsequently, reliability testing is conducted to indicate the extent to which measurement results of a variable are consistent when the measuring instrument is used repeatedly.A Cronbach's alpha value greater than 0.6 indicates acceptable reliability.SEM is a regression equation model that allows the response variables in one regression equation to become explanatory variables in other equations, demonstrating direct and indirect influences among variables.Steps in SEM modeling include developing a theoretical model, creating a path diagram, converting the path diagram to equations, selecting input matrices and estimating the model, and evaluating goodness-of-fit criteria.
Testing the research model is carried out to evaluate whether the model used fits well using the probability of the chi-square value (prob>chi2).The research model is considered a good fit if the prob>chi2 value is less than 0.05.This study employs purposive sampling method to select samples based on specific criteria aligned with the research objectives.Additionally, multicollinearity tests are conducted to examine correlations among independent variables in the regression model.The research model is evaluated based on assumptions related to SEM.Using the SEM-PLS method and the aforementioned data analysis, this study aims to test the relationships between the ease of financial recording, financial report accountability of MSMEs, and the usage of QRIS as the dependent variable..RESULT AND DISCUSSION Table 3. presents demographc profile of the respondent In terms of the demographic profile of the questionnaire respondents totaling 200 MSMEs in Yogyakarta, there is a balanced gender distribution, with 51% being male and 49% being female.Furthermore, in terms of age, the majority falls within the age range of 31 to 50 years old.In addition to this, the most common level of education is high school (SMA).Table 3,4 dan 5. present the sector type, there are no MSME entrepreneurs with operational ages exceeding 9 years, and in fact, the most dominant are new entrepreneurs with operational ages of less than 1 year.This is supported by the majority of legal entities being individual entities.The most prominent business sector obtained is the automotive trading and repair sector, accounting for 36%.This is followed by the manufacturing industry sector, accommodation and food services sector, as well as the agriculture, forestry, livestock, and fisheries sector.Based on the analysis of the questionnaire results from 200 respondents using the method employed is Structural Equation Modeling (SEM), which can be explained as follows:

Figure 3 -PLS Algorithm
In Figure 3, it is shown that the values for all loading factors are greater than 0.7, it can be concluded that the indicators of all latent variables have good convergent validity.Additionally, path coefficients with varying values are also displayed, with the largest coefficient being the path coefficient between the latent variable Usage of QRIS and Ease of Financial Recording, with a value of 0.831.This can be interpreted as the Usage of QRIS contributing 0.831 to the assessment of Ease of Financial Recording.1,000 1,000 1,000 1,000 Device Usage 1,000 1,000 1,000 1,000 Ease of financial recording 1,000 1,000 1,000 1,000 Financial statement accountability 0,517 0,575 0,799 0,667 Payment Methods 1,000 1,000 1,000 1,000 QRIS Adoption 1,000 1,000 1,000 1,000 In Table 9, the criteria for good values of Cronbach's Alpha and Composite Reliability are when the values are greater than 0.7.Therefore, it can be concluded that the respective latent variables have good reliability and consistency in measuring what is intended.
Since there is a parameter, Financial Report Accountability, with a Cronbach's Alpha value below 0.7, Composite Reliability is utilized instead, with consistent values above 0.7 for all parameters.Furthermore, the Average Variance Extracted (AVE) for all parameters indicates good convergent validity, as the values for all parameters are above 0.5.With the results of the Discriminant Validity (Table 4.5), it can be concluded that all latent variables can be said to have good discriminant values, as the correlation values between variables are not greater than the square root of the Average Variance Extracted (AVE) at the topmost value in each parameter.
Similarly, for the assessment of the model's goodness using R-Square and Model Fit (Table 10 and 11 ) below.Based on the T Statistics with the criteria that a good value is above 1.96 and P Values with the criteria that a good value is below 0.05, The results indicate that Company Account Ownership and the Payment Methods used have a positive influence on QRIS adoption in Yogyakarta's SMEs.However, the usage of devices does not have a significant impact.Meanwhile, the utilization of QRIS by SMEs in Yogyakarta also significantly affects the Ease of Financial Recording, but it does not influence Financial Report Accountability.These findings align with the research conducted by (Ledi et al., 2023) which explores the impact of QR Code on the performance of SMEs in developing countries.Their findings indicate that the use of digital money and QR code payments has a significant and positive impact on SME performance.Additionally, the study reveals that the influence of dynamic capabilities on firm performance is also statistically significant.Furthermore, in line with the outcomes of the research by (Sari & Adinugraha, 2022) at a macro level, the adoption of QRIS is highlighted as a driver for accelerating digitalization for economic recovery.
There were 147 respondents, and 200 respondents did not consider financial accountability of SMEs' financial statements to be something important.The reason is that they do not have the same obligations as public companies in terms of presenting publicly accessible financial statements required by various parties.However, in reality, accountable financial statements have significant benefits for SMEs, even though the size and complexity of these statements may be simpler compared to large corporations or public companies (Rodríguez-Gutiérrez, et al 2021).The benefits include informed decision-making, improved financial management, and business growth.Even SMEs can be highly susceptible to fraud risks if they do not have good financial records (Hess, M. F., & Cottrell, J. H. 2016).

CONCLUSION
This research utilized a quantitative approach employing the Structural Equation Modeling -Partial Least Square (SEM-PLS) method to examine the influence of non-cash financial transactions using QRIS on the ease of financial record-keeping and accountability of financial reports for Micro, Small, and Medium Enterprises (MSMEs) in Yogyakarta City.Primary data was collected through the distribution of questionnaires to 200 MSMEs utilizing the QRIS application.
It can be inferred that bank account ownership and payment methods have a positive influence on QRIS usage, while device usage does not significantly affect QRIS usage.Furthermore, the utilization of non-cash financial transactions through QRIS has a positive impact on the ease of financial record-keeping for MSMEs.However, QRIS usage does not significantly affect financial report accountability.This study provides a better understanding of QRIS implementation in the context of MSMEs and offers recommendations for MSME stakeholders and relevant parties to enhance the efficiency of financial record-keeping for MSMEs through the use of QRIS.
The benefits of this research are expected to serve as a valuable reference for MSME operators across the country, emphasizing the importance of using QR Code payment systems for transactions.One of the key advantages is the ease of conducting transactions, coupled with simplified financial reporting facilitated by a universally applicable technology spanning various sectors.This study can also be beneficial for academics in the advancement of knowledge and serve as input to support researchers and stakeholders interested in the field of research pertaining to the adoption of QRIS for ease of financial recording and financial report accountability.Additionally, for policymakers and payment system providers, the findings are anticipated to offer insights and evaluation for the development of universal QR Code-based payment systems.
Based on the outcomes of this study, there are potential avenues for further research, such as exploring other benefits perceived by MSME operators in utilizing QRIS payment systems, such as changes in sales turnover.As certain consumer groups are accustomed to non-cash payments and considering the time saved in generating financial reports, these MSMEs could potentially engage in additional sales-related activities.

Figure 2 -
Figure 2 -FrameworkBased on the research framework depicted above, it elaborates on the factors that influence the usage of QRIS in financial transactions, affecting the ease of financial recording and financial report accountability.The hypotheses captured in the diagram are that account ownership positively affects QRIS adoption, device usage positively affects