Enhancing Financial Reporting Timeliness: The Role Of Information Technology Integration and Accounting Policy Frameworks

Abstract

Delays in financial reporting are still one of the problems that are often found in local governments. This condition can have a negative impact on budget planning and implementation in the next fiscal year. One of the main causes of such delays is the lack of timeliness in financial reporting. This study aims to determine the extent of the influence of the application of information technology and accounting policies on the timeliness of financial reporting in local governments, with a focus on the study on Regional Apparatus Organizations (OPD) in Sijunjung Regency. The research method used is a quantitative approach with the type of associative research. The population in this study is all Regional Apparatus Organizations (OPD) in Sijunjung Regency, with a total sampling technique to capture all analysis units. Data collection was carried out through the distribution of questionnaires to employees of the finance and accounting department. Data analysis was carried out using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method with the help of SmartPLS software.

The results of the study show that information technology has a significant effect on the timeliness of financial reporting. This shows that the use of information technology makes the financial reporting process efficient so that it can be presented in a timely manner. In addition, accounting policies also have an influence on the timeliness of financial reporting. The implementation of accounting policies that are consistent, clear and in accordance with applicable standards supports a timely financial reporting process.

A determination coefficient value (R²) of 0.285 indicates that 28.5% of the variation in the timeliness of financial reporting can be explained by information technology variables and accounting policies. Meanwhile, the remaining 71.5% was influenced by other factors not covered by this research model. These findings emphasize the importance of information technology capacity building and effective accounting policy enforcement to realize accountable and timely financial reporting in the public sector.

Keywords: Information Technology, Accounting Policy, Punctuality, Financial Statements, Regional Apparatus Organization (OPD).