Determinant of Digital Accounting Moderated By Religiosity: Evidence From Tofu MSMEs In Binjai City

Abstract

Purpose – This research explores the influence of financial literacy, and green accounting on digital accounting in Tofu MSMEs moderated by religiosity. Method – This research employed a quantitative approach, utilizing a survey method to collect data from respondents. Tofu MSME owners in Binjai City, North Sumatera were being population in this research. The saturated sampling technique was used to choose the 47 MSME owners that made up the research sample. This research uses data analysis with the Partial Least Square (PLS) approach assisted by SmartPLS. Findings – The analysis results indicate that financial literacy has a positive and significant effect on digital accounting. However, green accounting and religiosity did not significantly affect digital accounting in Tofu MSMEs. Religiosity is able to strengthen and moderate the effect of financial literacy on digital accounting. However, it does not moderate the relationship between green accounting and digital accounting in Tofu MSMEs. Implications – This research contributes to the theoretical framework of MSMEs by integrating digital transformation into the MSME sector. The study provides practical insights for MSMEs to invest in digital infrastructure and implement comprehensive digital literacy programs to foster sustainable and inclusive digital accounting.