Accounting Services Research Articles

Effect of Accounting Understanding, Tax Professional Attitude, Professional Commitment of Practicing Accountants on Tax Compliance Based on Minister of Finance Regulation (PMK) No. 216/PK.01/2017 concerning Registered Accountants (an empirical study of a Practicing Accountant at an Accounting Service Office

The purpose of this study is to analyze the effect of understanding of accounting, professional tax attitudes, professional commitment of practicing accountants to tax compliance based on Ministry of Finance No. 216/PK.01/2017 concerning registered accountants with empirical studies of practicing accountants at Accounting Services Offices (KJA). The study uses the Quantitative Method to test the primary data collected through questionnaires, by testing multiple regression analysis through statistical data analysis SPSS software. Answers 97 respondents are members of Practicing Accountants who work at KJA. The results of this study prove that understanding of accounting, professional tax attitude has an effect on tax compliance, while professional commitment has no effect on tax compliance based on PMK regarding accountants practicing at KJA. The benefits of research become a reference for practical contributions, material for consideration to the government, and teaching input materials about the role of a Practicing Accountant in increasing tax compliance, as well as being a scientific reference for subsequent researchers.

Audit of Bank Lending Transactions Accounting when Applying International Standards

One of the most important areas of verification during auditing a bank is the audit of the funds placed in loans. The purpose of the audit is to confirm the accuracy of the information in the reports. The article deals with the problems of auditing the accounting of cash loan transactions. Taking into account that one of the objectives of the audit is to confirm the reliability of data in the accounts, the change in requirements for the formation of information on loans issued in the conditions of applying international accounting standards (IFRS) has predetermined the very need to expand and change accounting policies in this matter. It should set out how and when to determine and how often the fair value at which a loan should be measured should be reassessed. The transformation in the requirements for the formation of information in the accounting of loans issued by the bank, associated with the application of international accounting standards for financial instruments, predetermined the need to expand and change the accounting policy in terms of loans issued. In particular, the loan should be measured at fair value, therefore, the accounting policy should establish the procedure and methods for determining the fair value and the frequency of its revaluation. The procedure for recognizing and accounting for income and expenses related to credit transactions has changed. The article discusses methodological recommendations for the formation of an accounting audit program and accounting policy in relation to the bank’s credit operations in the light of the requirements of international standards. The purpose of this work was to form a methodology for auditing the accounting of credit transactions. As part of the study, the author proposed appropriate methodological recommendations that can be used in the development of accounting policy provisions, methods of internal control and audit of credit operations in conditions of modification of domestic accounting and application of international accounting standards, as well as in the training of specialists in accounting, internal control and audit. In the course of research, methods such as systematic analysis and logical generalization of legislative and regulatory documents, as well as special literature dealing with the audit of credit transactions were used. The proposed methodological recommendations for audit of credit operations can be used by auditors as well as by internal control and accounting service of the bank for analysis of accounting policy and its adjustment. The results of the research can be recommended for the development of accounting policy provisions, internal control methods and audit of credit transactions, in the conditions of modification of domestic accounting and the application of international reporting standards, as well as used for training specialists in accounting, internal control and audit.

A Comparative Study on the Combination of Classification Algorithm and Language Model Implementation for Smart Accounting System

Micro, Small, and Medium Enterprises (MSMEs) normally dealing with financial documentation and reporting problems due to in sufficient budget for hiring professional accounting services. Although some of them might have utilized off the shelf accounting softwares, they still face many obstacles in compiling a proper financial documentation because the employed software do not have an automatic transaction classification capability to assist users in recording any transactions. This study was aimed to investigate the opportunity of implementing automatic transaction classification for accounting system by using a Natural Language Processing (NLP) approach to automatically interpret the suitable account for any financial transactions based on the text written on the transaction forms. An experiment was conducted to compare the performance of eight combinations comprising of four classification algorithms (i.e. SVM, KNN3, KNN5, and NB) with two language models (i.e. TF-IDF and BoW). The result showed that KNN5 and TF-IDF pair gave highest performance with accuracy 82,5%, precision 82,54%, recall/sensitivity 83,7%, specificity 92,06%, and F1 Score 81,5%.

Factors Affecting Demand for Accounting Services of Enterprises Using Cloud Accounting in Hanoi

Purpose: The article analyzes the impact of factors affecting the demand for accounting services of enterprises using cloud accounting in Hanoi. Theoretical framework: This paper uses model Factors Affecting Demand for Accounting Services of Enterprises Using Cloud Accounting. Design/Methodology/Approach: The research method uses a questionnaire survey of accountants, chief accountants, business managers of enterprises in Hanoi. After the survey results are available, data processing is performed by statistical methods to determine the weight and frequency of the selected factors, and the data is processed on SPSS statistics 25 software to estimate the impact of the selected factors, factors affecting the demand for accounting services of enterprises using cloud accounting in Hanoi. Findings: Research results show that Cost Of Using Accounting Service, Trademark, Introduction, Accounting Professional Qualification, Benefits Of Using Accounting Services, Characteristics Of Businesses Using Cloud Accounting, Supplier's Support have a positive impact on the demand for accounting services of enterprises. businesses using cloud accounting in Hanoi. Research, practical & social implications: Based on the research results, the author has proposed recommendations to improve the demand for accounting services of businesses using cloud accounting in Hanoi. Originality/Value: This study fills the gap in the Demand for Accounting Services of Enterprises Using Cloud Accounting in Hanoi.

Management of an organisation’s accounting department: Overcoming the challenges of martial law in Ukraine

The study of accounting personnel management is relevant since the modern accounting service as a structural unit of an organisation with specific administrative functions is constantly transforming and adapting in response to the pressure of an aggressive environment. Effective management of accounting personnel makes the transformation process manageable, which has a positive impact on the functioning, productivity, and sustainability of the entire company. The purpose of the study was to summarise the practical experience and current trends in the management of the accounting service of a company in the conditions of war. The study is based on scientific works on the organisation of accounting and personnel management, statistical and analytical studies, and legislative acts in the field of accounting. The study employed traditional theoretical methods of cognition (generalisation, deduction, grouping, analysis, synthesis); empirical methods (observation, description of personal experience), and the graphic method. The paper focused on the interaction of managers with the accounting department as a team. It was demonstrated how the unfavourable conditions of martial law forced accountants and managers to join forces to adapt the organisation to the new realities. Specifically, the most difficult issues that have arisen in the field of accounting management at Ukrainian enterprises since the beginning of the war were considered. The study investigated such aspects of accounting service management as: staffing, creation of appropriate working conditions for accountants, digitalisation of accounting business processes as a tool for enhancing security, psychological factors of work efficiency. Particular attention was paid to new manifestations of loyalty of accountants and managers in extreme conditions. The problem of social responsibility of managers and the influence of moral and ethical principles on organisational decision-making by accountants was raised. The authors suggested personnel strategies that have proven to be the best in managing an organisation’s accounting department in times of war. This study is important and has practical value, as it suggests that organisational managers should pay attention to the needs of accounting staff, as well as apply both conventional and innovative methods of personnel management adapted to martial law conditions to the accounting service

Transformasi Digital Adopsi Software as a Service Layanan Cloud Accounting Oleh UMKM

The purpose of this study is to explore and explore the decision to adopt or not adopt Software as a Service by Micro, Small and Medium Enterprises in Lubuklinggau City. This research uses a qualitative approach with an exploratory research design. Researchers collected primary data using in-depth interview techniques with 12 informants from 6 MSE’S sectors that most dominate businesses in Lubuklinggau City. The results of the study show that the adoption of Software as a Service innovation in the form of cloud accounting services in Lubuklinggau City is still relatively low. Personally, MSE’S players are still at the awareness and interest stage. Meanwhile, as a business group, MSMEs in Lubuklinggau City are still at the level of the early majority to the late majority and can even reach the laggard. Factors that influence the adoption of cloud accounting service innovations for MSE’S in Lubuklinggau City, namely: 1) Supporting factors, namely the ease of accessing and inputting data and effectiveness in business operations. 2) The inhibiting factors are the weak ability to understand technology, lack of competent human resources, limited financial data, and weak business management. Weak ability to understand technology into performance expectancy, lack of competent resources, and financial data is still a little bit into facilitating conditions and weak business management into effort expectancy.

Predicting The Share of Tourism Revenues In Total Exports

Tourism revenues are a significant source of income under the current account service item of countries. These revenues are not included in exports, despite being compared with the export revenues of the countries and in economics the ratio of tourism revenues to export revenues is used as an indicator. In developing economies, tourism revenues play a role in closing the current account deficit. The prediction of this rate in countries with foreign trade deficit is important in developing tourism, export and import policies for the future. In this study, multiple linear regression method (MLR), one of the traditional methods, and the artificial neural network method (ANN), one of the machine learning methods were used to estimate the rate of tourism revenues of the sample country Turkey to its export revenues. In the model of the study covering 2004-2020 period, the number of tourists received, total income from tourism, average expenditure by tourists per capita, population, total export revenue, growth rate, Euro/TL and US Dollar/TL rates were chosen as independent variables. As a result of the study, the R2 value was found to be 91.7% for ANN and 90.8% for MLR which were very close to the ideal value. According to the predicts made on the model developed based on this, the rate of Turkey's tourism income to total export income in 2025 is estimated as 31.83% according to ANN; 32.73% according to MLR while in 2030, it is estimated to be 33.25% according to ANN and 36.78% according to MLR.

A Knowledge Synthesis of Anti‐Black Racism in Accounting Research*†

ABSTRACTThis structured literature review synthesizes studies that have investigated questions related to anti‐Black racism—namely, the discrimination and marginalization of Black people—in the accountancy literature and identifies opportunities for future research. This study is part of a larger research project that reviewed 161 articles and identified four themes relevant to accounting research on discrimination in general: anti‐Black racism, imperialism and postcolonialism, intersectionality, and diversity. Based on the 25 anti‐Black racism articles reviewed, this paper finds four key subthemes: demand for accountancy services and racial discrimination in accountancy practice, the racialization of professional accounting qualifications, Black professionals in academia, and the supply‐side fallacy. Furthermore, because studies at the intersection of anti‐Black racism and accounting are limited, this study proposes future research directions that will advance knowledge on various topics related to anti‐Black racism.

Set covering heuristics in a Benders decomposition for railway timetabling

Railway timetabling is a major challenge in the operation of railway. The timetable of a railway determines times, orders and routes of trains on the network and thereby defines the performance of the entire railway system. Railway operators are keen to maximize the economic performance of their railway system, such that timetables should be designed taking into account service requirements that result in a performant railway system In this work, we address a specific subdomain of timetabling, focusing on short-term tactical changes for already existing timetables, modeled with microscopic detail. With a Benders decomposition we propose an approach on this specific microscopic timetabling problem. In the decomposition, we consider quality and optimality of a timetable separately from the feasibility of a timetable. Quality is determined in a set covering problem and feasibility in a mixed-integer scheduling problem. With efficient heuristics on the problem of set covering in our decomposition, high quality solution for the resulting timetables are provided in short time, which enables an interactive design of adapted timetables. The novel approach provides heuristic solutions up to ∼20 times faster than standard approaches by commercial solvers, with an average gap of ∼7.5% in the optimality of solutions. Extensive experiments empirically confirm the benefits of the new approach.

What Digital Technologies are Used Today by Accounting Firms to Deliver Services

Abstract Nowadays for carrying out their activity, enterprises rely a lot on information and communication technology. In a dynamic business environment characterized by many uncertainties, the accuracy and speed of information production are crucial. Internal and external accountants prepare the information needed by managers to make decisions. Advances made in information and communication technology ensure near real-time information and instant communication. This paper investigates digital technologies used today by accounting firms to deliver services considering the driving factors for adoption and the impact of their use. We mobilized institutional theory as a theoretical framework, accounting services industry from Romania as context and semi-structured interviews as research methods involving 17 accounting experts. The results indicated that adoption of digital technologies within accounting firms is mainly driven by coercive and mimetic isomorphic pressures coming from the state and competitors. International and local accounting firms affiliated to international networks implemented digital technologies to a greater extent compared to local independent accounting firms which intend to invest more in digital technologies when the electronic invoicing system becomes mandatory for all enterprises. For clients with a large amount of data, accounting firms use import interfaces to exchange data between information systems. Cloud applications and virtual meeting platforms enable the provision of digital services and today because of digital technologies large companies can also outsource their accounting services. Some accounting firms are required by contract to use digital technologies provided by their clients. Accounting experts claimed that automation solutions decrease the processing time of documents and ensure a similar quality to the manual work performed by human employees. Showing what digital technologies are used today and their impact for accounting services industry represent the main contributions of our study. Our research has implications for smaller accounting firms since our findings can represent for them an important source of information.

Prosedur Pencatatan dan Perlakuan Aset Tetap Berwujud Yayasan XYZ Berdasarkan PSAK 16

Fixed assets such as land, vehicles, equipment, and machinery are essential components to support the company's operational activities. Sound recording and accounting treatment of fixed assets are needed to prepare relevant, comparable, and reliable financial reports. The purpose of this study was to find out whether the procedures for recording and treating fixed assets carried out by the Arif, Wahyudi & Lukman Accounting Services Office at the XYZ Foundation were following PSAK No. 16. Compliance is determined by comparing the provisions in PSAK No. 16 with the practice of recording and treating fixed assets in the preparation of financial reports. The type of research used is a qualitative description and uses data collection techniques in the form of interviews and documents. Fixed assets owned by the XYZ Foundation are tangible fixed assets whose depreciation is carried out using the straight-line method. The study results concluded that the procedure for recording and treating fixed assets at the XYZ foundation was under the Statement of Financial Accounting Standards No. 16. However, there are some constraints.

ROSE ACCOUNTING SERVICES platform from ORACLE BUSINESS SUITE as an alternative to 1c for automation of accounting, financial and management accounting in Ukraine

Traditional systems of accounting, financial and management accounting in Ukraine and the world are becoming more and more automated. The COVID-19 pandemic and military aggression accelerated these processes. Therefore, the use of a digital accounting office and cloud platforms in the daily work of an accountant is quite relevant. However, the modern realities of doing business in Ukraine require the search for an alternative product and replacement of the existing and widespread 1C program for the automation of accounting, financial and management accounting. The subject of the study is the functionality of the ROSE ACCOUNTING SERVICES platform from ORACLE BUSINESS SUITE for accounting, financial and management accounting. The purpose is to review and familiarize with the ROSE ACCOUNTING SERVICES program from ORACLE BUSINESS SUITE, as an alternative to using the 1C program. In view of this, the task of the work is to get acquainted with the functional modules of the proposed program. In the course of the study, such empirical methods as description were applied - to familiarize with general information about the functionality of the ROSE AS program, and theoretical - explanation and classification - for a more detailed study of the existing modules. The obtained results indicate the compliance of the proposed program with the requirements for effective accounting, financial and management accounting in Ukraine. Conclusions: the use of the proposed ROSE ACCOUNTING SERVICES platform from ORACLE BUSINESS SUITE for the automation of accounting, financial and management accounting at Ukrainian enterprises can become a worthy alternative to the use of the 1C program and meets the requirements for accounting, financial and management accounting in Ukraine

Factors Influencing the Intention to Adopt Cloud Accounting Among Malaysian North Borneo SMEs: A TOE Model Approach

"This study aims to investigate the level of intention among Malaysian SMEs in North Borneo, particularly in Sarawak, to adopt cloud accounting services using the Technological-Organizational-Environmental (TOE) model. Considering that cloud accounting adoption is still at an early stage in the region, the study aims to contribute to a better understanding of the factors that influence the intention to adopt cloud accounting. This study aimed to determine whether perceived utility, support from senior management, and competitive pressure influenced the intention to adopt cloud accounting. 128 SME owners/managers in Sarawak participated in an online survey for this study. The collected data was analysed using the PLS-SEM technique to increase the variance explained by endogenous constructs. The study indicated that management support and competitive pressure were key drivers in Sarawak SME adoption of cloud accounting, while perceived usefulness had no significant relationship. The study recommended IT developers to create user-friendly interfaces and functional utilities to enable SMEs with limited technology knowledge and ability to adopt cloud computing. The study provided guidance in rationalizing risks accompanied with CA environments in a way to promote a better understanding of cloud services. This study contributes to a better understanding of the factors that influence the intention to adopt cloud accounting services in an underexplored region. The limitation of this study is company participation; a bigger sample would have helped the researchers gather broader viewpoints and verify the findings."

Accounts payable forecasting in financial management: Opportunities and limitations

Subject. The article deals with the issues of organization of an effective system of financial planning of accounts payable and the practical possibilities of using forecasting tools for the purposes of financial management of an economic entity. Objectives. The article aims to develop methodological approaches to forecasting the accounts payable of the economic entity in the context of financial management. Methods. For the study, we used prospective analysis and synthesis, generalization, comparison, systems approach, and the time series decomposition technique. Results. The article substantiates the necessity of building a forecast of the economic entity's accounts payable in the context of financial management, proposes forecasting based on a time series model, and reveals methodological aspects of preparing a pro forma balance sheet of debt movement to creditors. Conclusions and Relevance. Accounts payable forecasting as a financial management tool is one of the stages in the formation of the cash budget and pro forma balance sheet of an economic entity. The results of the study can be applied by accountants, financial controllers and specialists of the management accounting service in the process of accounting and analytical work for the organization of financial management of accounts payable of an economic entity.

The Impact of Benefit Plan Audits on the Financial Statement Audit

SYNOPSIS Benefit plan audits, a material but less understood public accounting service, represent a nonaudit service that is “audit related.” We explore the implications of benefit plan audits for the financial statement audit and find that performing a benefit plan audit for a company significantly increases the likelihood that the firm will be selected as a company’s financial statement auditor in the future, particularly for smaller audit firms. Further, we find that companies that engage the same audit firm for both their benefit plan and financial statement audits have a significantly lower likelihood of misstatements and shorter audit report lags. Finally, we find evidence consistent with the joint provision of these services creating greater bonding and higher switching costs for the financial statement audit. Our findings speak to the continued debate over effective market expansion of financial statement audit providers, audit quality determinants, and audit efficiencies. JEL Classifications: M4; M40; M41; M42; M49.

Exploring the Current State of Forensic Accounting in Saudi Arabia and Possible Ways of Elevating It to Assist the Government Fighting Corruption

Abstract Corruption occurs when there is a misuse of current resources to maximize personal benefits at the expense of other parties, causing financial problems and preventing the development of emerging economies. Forensic accounting services utilize financial data to solve legal disputes. Saudi Arabia’s government does not tolerate obstacles that impede the realization of its ambitious Vision 2030, a long-term plan for transforming society and reforming the economy. The war on corruption has been observed in Saudi Arabian domestic policy. Whether the forensic accounting profession and the readiness of accountants qualified to conduct forensic inquiries and investigations are effectively accompanied by the government’s fight is probed. This study explores the current state of forensic accounting in Saudi Arabia. Potential means of employing such status to make Saudi Vision 2030 a reality to combat corruption and the ability of forensic accounting to ease the government’s fight are also investigated. A questionnaire was conducted on 181 participants comprising accountants, auditors, judges, accountancy academics, Oversight and Anti-Corruption Authority employees, and any supervisory body in Saudi Arabia. The results show that 46% of the surveyed participants were unaware of forensic accounting, implying that despite its significance and demand for its services, forensic accounting is undersupplied in Saudi Arabia. Thus, it is inferred that the current state of forensic accounting is below the required level. To address this issue, forensic accounting should be incorporated into accounting curricula, accountants should join specialized scholarship programs and seek to be certified forensic accountants. Policy-makers must develop charter institutions and related forensic accounting standards.

Accountants robots in shared service centers: effects of the culture for innovation, work engagement and performance measurement system

PurposeThis study aims to examine the effects of the culture for innovation, work engagement and the use of interactive performance measurement systems (PMSs) in the interorganizational accounting processes automation at a shared services center (SSC).Design/methodology/approachA single-entity survey was carried out at an SSC provider of B2B accounting services of a multinational company in the electrical sector, and structural equation modeling was applied for data analysis.FindingsThe results show that the culture for innovation, the work engagement and the use of interactive PMS positively and significantly influence the accounting process automation in the investigated SSC. Moreover, the use of interactive PMS presents a mediating effect on the relationship between culture for innovation and work engagement.Research limitations/implicationsThe research findings contribute by revealing that the culture of innovation, work engagement and the interactive PMS support the use of robotic process automation and artificial intelligence in the interorganizational automation of accounting processes in an SSC-type service ecosystem. This highlights the importance of the culture of innovation and the positive feeling toward work being reinforced by the organization and the role of the interactive PMS as a formal instrument to transmit the organizational objectives and provide a common vision.Originality/valueThe study reveals that the use of interactive PMS seems to be an important conductor of the behavior of employees toward the accounting process automation strategy at the SSC, reinforced, in this case, by the culture of innovation and work engagement.

The Rise of Virtual Accounting Industry: Evidences from the Philippines

When the working conditions changed due to lockdowns and social distancing protocols imposed by the government to prevent the spread of the COVID-19 virus, a lot of employees discovered opportunities to earn or make a living without leaving the safety and comfort of their homes. This paper aims to present a comparative analysis using descriptive quantitative research design that looks into the rise of the virtual accounting industry in the Philippines in the year 2019 to 2021 measured in terms of; the number of Filipino practitioners offering online accounting services, membership in exclusive social media groups for virtual accountants, published job openings for online accountants and potential income as broadcasted on social media and other available data. The paper relied on secondary data from pre-pandemic and post-pandemic phases, for the sake of establishing a rising trend. This paper also gathered primary information on some selected virtual accountants in the Philippines.

Technological innovation and the co-production of accounting services in small accounting firms

PurposeIncreasingly, emerging information technologies such as shared software and continuous accounting are offering alternative ways to perform accounting tasks in a supposedly more efficient fashion. Yet, few studies have investigated how they affect the provision of accounting services, especially in the context of small accounting firms, which provide legal and tax services to entrepreneurs and businesses. Drawing on the service perspective, the paper critically examines how technological innovation challenges and reconfigures the co-production of accounting services in these firms.Design/methodology/approachThe paper answers calls issued in prior studies to conduct empirical research on emerging information technologies for accountants. It focuses on the specific context of small accounting firms and draws on interviews with small accounting firms' managers (n = 20).FindingsThe study emphasizes five significant challenges that accounting firm managers face when using information technologies to support the provision of their services (ensuring reliability, factoring in their heterogeneous client base, repricing, training clients to use new technologies and promoting advisory services). Information technologies are shown to have a structuring role in the co-production of accounting services, as they lead to reconfigurations of the relationships between accountants and their clients. A range of four configurations is developed to highlight accountants' strategies to maintain collaborative relationships with their clients while integrating new technologies into their work practices.Originality/valueBy conceptualizing accounting services as a co-production process, the paper offers new insights into the implications of emerging information technologies for small accounting firms.

Income Tax Calculation Analysis At IBP Bandung Tax Consultant Office

In order to prepare corporate income tax at one of East Bandung's Accounting Services Offices, this research will look at the income tax article 21 computation using three ways (net, gross, and gross up). The study's focus is a business that offers services like bookkeeping, tax preparation, financial advice, and other related ones in Bandung. This study uses a qualitative approach method with additional quantitative information. The company's Article 21 PPh computation, salary information for permanent employees in 2022, and PPh regulations were all employed. The Gross Up method is the best and most effective method for business tax planning, according to the study's conclusions. The Gross Up strategy allows companies to offer tax incentives to their employees and can be used as a deduction from gross income, lowering the amount of corporate income tax owed. This study is only applicable to one company, and it can be developed by distributing questionnaires related to the article 21 income tax calculation calculation.