Accounting Information System Based on Accrual with Cash Budgeting Approach

Abstract

Digital transformation has reshaped the accounting landscape, yet many small and medium enterprises (SMEs) struggle with the limitations of traditional cash-basis systems that fail to provide a complete financial picture. While accrual accounting offers a comprehensive view of financial health, it often lacks focus on immediate liquidity, which is critical for short-term operational stability. Motivated by the need for more accurate financial forecasting and decision-making, this study proposes an integrated Accounting Information System (AIS) that harmonizes accrual accounting principles with a cash budgeting approach. The primary contribution of this research is the development of a hybrid framework that bridges the gap between long-term profitability tracking and short-term liquidity management within a single, scalable platform. The effectiveness of the system was evaluated through functional and usability testing using real-world SME data. Results indicate that the system achieved a high degree of forecasting accuracy with an error margin of less than 5% and received positive feedback for its intuitive workflow. Future work will focus on enhancing system scalability for larger datasets and integrating advanced machine learning techniques, such as external economic variable analysis, to further refine cash flow projections. This integrated AIS serves as a robust tool for SMEs to ensure long-term sustainability through improved financial governance.