Implementation of an Accrual-Based Accounting Information System Using the Incremental Budgeting Method
Abstract
The advancement of information technology has intensified the demand for reliable and timely financial information, particularly within small and medium sized enterprises. Many SMEs continue to apply manual or partially computerized accounting practices that are not fully integrated with financial performance evaluation, leading to inefficiencies and limited managerial insight. This study focuses on the design and implementation of an accounting information system based on the financial ratio method to support financial management at CV Bali Indigo. The proposed system consolidates financial transaction recording, automated financial statement generation, and financial ratio analysis within a single integrated framework. Key financial ratios, including liquidity, profitability, and solvency indicators, are calculated automatically to provide objective measures of financial performance. The research methodology encompasses system requirement analysis, system design, implementation, and evaluation stages. The findings indicate that the implemented system enhances both the accuracy and timeliness of financial reporting while improving the usefulness of financial information through automated ratio analysis and managerial support features. By delivering structured financial insights and real time analytical outputs, the system facilitates more informed managerial decision making. Overall, the results confirm that integrating financial ratio analysis into an accounting information system represents an effective approach for strengthening financial performance evaluation in small and medium sized enterprises.
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