The Effectiveness of Accounting Information Systems at

Hotel Resorts in Ubud

Putu Kepramareni1, Ida Ayu Nyoman Yuliastuti2, I Wayan Satria Dharma Putra3
Faculty of Economics and Business Mahasaraswati Denpasar University1,2,3
Jl. Kamboja No. 11 A, Denpasar, Bali, Indonesia
Correspondence Email: [email protected]

ABSTRACT

This study aims to examine and describe the effect of information technology
sophistication, accounting, and work experience on accounting information system
effectiveness of hotel resort in Ubud. This research paper used purposive sampling
method to determine the 152-samples. The research problems were examined by multiple
linear regression analysis. The tests revealed that sophistication of information
technology, accounting understanding, and work experience positively affect the
effectiveness of accounting information systems. This finding could make a valuable
contribution to the application of accounting information systems in companies,
particularly hotels.

Keywords: Accounting Information Systems, Effectiveness, Hotel Resorts

INTRODUCTION

The tourism sector is highly potential to be integrated with information technology. Hotels,
as one of accommodation facilities in this sector, have implemented several specific
information systems to ease their managerial operations, as well as a means of processing
daily transactions provide reports needed (Sutabri, 2012: 46). This underlines the value of
information systems to assist management to perform its functions and to achieve
company's goals. It is highly required to improve coordination among divisions in hotel
departments and to prevent errors in providing services to consumers.

Resort hotels in Ubud have been able to implement computer-based information systems
and have been supported by professional staff. Puspitawati and Anggadini (2011: 57)
found that accounting information system could be utilized as a system in organizing
forms, records, and reports to produce financial information needed decision making since
quick and accurate system is beneficial for short-term plans, for example, determining
rates for hotel rooms and inventory estimation of goods in warehouses integrated with its
financial reports. In addition, information system plays significant roles for strategic
planning to fight off other hotels.

Proper usage of information technology certainly helps companies to improve their

organizational performance. It brings significant effect on the overall organization,
particularly upon existing resources, in this case, the users of the system, for their
readiness is determining factors for the success of the system implementation.

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Today’s technology have experienced significant developments compared to previous
times. This demands speed and ability for a manager to allocate resources effectively and
efficiently in a corporate environment if management can make decisions based on quality
information created from a well-designed information system. The current development of
technology in accounting has been considerably helpful in improving the Accounting
Information System (AIS). The increasing use of computer technology is one example of
information technology that has changed manual accounting data processing into
automatic ones. The use of accounting information systems is inseparable from the
problems faced such as the sophistication of information technology used, an
understanding of accounting science, and work experience.

The sophistication of information technology is a development in information to increase

the receipt, processing, and storage of information. Even though the quality of the system
did not have a significant effect on users’ intention (Machmud, 2018), information
technology sophistication has a positive influence on the effectiveness of accounting
information systems (Lisnawati, Wahyuni, & Julianto, 2017). This means that adequate
sophistication of information technology will increase the effectiveness of accounting
information systems.

Understanding refers to process or way of doing in understanding, so the people who

understand accounting are clever about accounting. The Republic of Indonesia’s
Government Regulation Number 71 Year 2010 on Government Accounting Standards
mentioned those who understand accounting is those who understand and are clever
about how the accounting process is carried out until it becomes a financial report by the
principles and standards for preparing financial statements. According to Yuliani (2010),
the quality of people who carry out tasks in compiling financial reports of a company must
be the main concern to produce quality financial reports. Employees who are involved in
the activities of making financial statements must understand how the accounting process
and implementation is carried out based on applicable regulations. Diani (2014) argued
that accounting understanding positively affects the effectiveness of accounting
information system. The higher the understanding, the higher the AIS effectiveness.

Work experience is about technical factors affecting the development of information

systems. It is a learning process in the addition and development of potential to behave,
either from formal and non-formal education, or it is a process by which someone leads to
a higher pattern of behavior (Knoers & Haditono, 1999). According to Belawa (2018), work
experience has a positive influence on the effectiveness of the accounting information
system. This means that experience is vital in a decision making. The longer a person
works, the more his/her experience and knowledge.

An explanation of the relationship between the sophistication of information technology

sophistication, accounting understanding, and work experience on effectiveness
accounting information system that has been discussed previously. However, not all
researchers came to the same conclusions. Therefore, this study aims to analyze the
effect of information technology sophistication, understanding of accounting science and
work experience on the effectiveness of accounting information systems in hotel resorts
in Ubud.

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Sutabri (2014: 3) defined information technology as the technology used in processing
data, obtaining, compiling, storing, and manipulating data in various ways to produce
quality information to produce relevant, and accurate information, as strategic information
for decision-making, for personal, business and government purposes. TAM theory also
explains trust, which is the foundation of a business transaction between two or more
parties. It is needed by users of information technology to improve individual performance
in carrying out organizational activities. The relationship between the sophistication of
information technology and the effectiveness of accounting information systems is not only
limited to computer technology used to process and store information, but also the
communication technology used to transmit information. Thus, information technology
concerns the science used to manage information so that it is accurate and easy to find
(Martin in Darmawan, 2012: 16).

Additionally, Lisnawati et al (2017), Dwitrayani, Widanaputra, and Putri (2017), Utari,

Sulindawati, and Julianto (2018) found that the sophistication of information technology
positively affects the effectiveness of accounting information systems. This means that
high sophistication of information technology will lead to more effective accounting
information systems. Based on this, this study proposes the hypothesis that:
H1: Information technology sophistication has a positive effect on the effectiveness of
accounting information systems

People who carry out tasks in preparing financial reports must be the main concern, to
obtain quality financial reports. Quality financial reports will be obtained if employees
involved in these activities can understand how the accounting process and
implementation is carried out based on applicable regulations (Yuliani, 2010). With the
facilities of an accounting information system specifically designed for the process of
preparing financial reports, starting from journal recording, ledgers, to financial reports, all
have been systemized with a computerized system, which will reduce the error rate in
calculations and save time in the compilation process.

This leads to a conclusion that a person must understand accounting to carry out a
process of identifying, recording, and communicating the financial reports which reflect
company's condition to interested parties. Diani (2014) contended that the understanding
of accounting has a positive effect on the effectiveness of the accounting information
system. Along with this, the second hypothesis proposed is:
H2: Understanding accounting has a positive effect on the effectiveness of accounting
information systems.

Experience is a learning process and potential development in behaving both from formal
and non-formal education. It is a process bringing a person to higher behavior. Learning
includes relatively precise changes in behavior as a result of experience, understanding,
and practice (Knoers & Haditono, 1999). Someone's work experience affects his/her
character at work. The longer he/she uses accounting information systems, the better
his/her performance in helping the process of presenting accounting information
(Widyantari & Suardika, 2016).

Diani (2014), Adrian (2015), and Paramita (2018) suggested that work experience has a
positive effect on the effectiveness of accounting information systems. This means that

37
the more work experiences a person has, the more effectively he/she uses of accounting
information systems. Based on this we propose that:
H3: Work experience has a positive effect on the effectiveness of accounting information
systems.

RESEARCH METHOD

This research was conducted at 19 star-rated hotel resorts in Ubud since hotels in this
area have been able to implement and use accounting information systems. In addition,
the increasing development of these hotels creates higher competition among them.
Figure 1 presents the conceptual framework of this study.

Information
Technology
Sophistication

Effectiveness of
Understanding Accounting
of Accounting Information
Systems

Work
Experience

Figure 1. Research Conceptual Framework

The data collection method used was a questionnaire to obtain information from managers
and subordinates involved in the budget preparation process or responses to statement
items used as indicators for the four research variables. Respondents' answers were
measured by a Likert scale of a five-point scale, one score for the lowest, and five score
for the highest. Information technology sophistication was measured by three indicators
adopted from Rachmawati (2012: 78), namely flexibility, ease of use, and reliability.
Accounting understanding was measured by five indicators adopted from Warsono
(2009), namely journals, ledgers, trial balance summary, journal entry adjustment, and
financial report preparation. Additionally, work experience was measured by three
indicators adopted from Zainullah, Suharyanto and Budio (2012), namely years of service,
the experience level, and knowledge and skill level. The effectiveness of Accounting
Information System is measured by three indicators, namely the ability of AIS to complete
tasks, the availability of data in the AIS, and the ability to display accurately all related
transactions in financial reports.

The population in this study is 19-star hotels in Ubud with a total of 2,151 employees with
various tasks and positions. The non-probability sampling technique, namely purposive
sampling, was used as a method of determining the sample in this study producing 152
samples. To determine the effect of information technology sophistication, understanding
of accounting science and work experience on effectiveness of accounting information
systems, this study used multiple linear regression analysis with the following regression
equation.

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 EAIS = α + β1ITS + β2UA + β3WE + e ......................................................... (1)

where,
EAIS = Effectiveness of Accounting Information System
α = Constant
ITS = Information Technology Sophistication
UA = Understanding of Accounting
WE = Work Experience
β1 β2 β3 = Regression Coefficient
e = Error

RESULTS AND DISCUSSION

The 152 questionnaires distributed to 19-star hotels were returned completely, with 100%
response rate. The respondent’s demography were 19 people (12.5%) have the same
position, the respondents aged 26-30 years is 55 people (36.2%), and the respondents
aged of 31-35 is 24 people (15.8%). By the latest education, the majority of respondents
(64 people or 42.1%) have a diploma degree, and 38 respondents (25%) were Senior High
graduates. By the years of service, 64 people or 42.1%, respondents have 1 - 5 years of
service, and 30 (19,7%) respondents have already for the company for more than 5 years.

Validity testing is conducted by Pearson correlation. An instrument is valid if the r Pearson

correlation with the total score is above 0.30. As for the reliability test by Cronbach Alpha
value, it is reliable if the Cronbach Alpha value is greater than 0.60. The results of the
validity and reliability tests in this study are presented in Table 1 below.

Table 1. Results of Validity and Reliability Test

Cronbach's
Variable Indicators r count r table Information
Alpha
ITS.1 0.871 0.30
Information ITS.2 0.830 0.30
Technology ITS.3 0.812 0.30 Valid and
0.912
Sophistication ITS. 4 0.884 0.30 Reliable
(ITS) ITS.5 0.850 0.30
ITS.6 0.799 0.30
UA.1 0.792 0.30
UA.2 0.730 0.30
Understanding of Valid and
UA.3 0.830 0.30 0.829
Accounting (UA) Reliable
UA. 4 0.775 0.30
UA.5 0.756 0.30
WE.1 0.606 0.30
WE.2 0.703 0.30
Work Experience WE.3 0.666 0.30 Valid and
0.792
(WE) WE.4 0.787 0, 30 Reliable
WE.5 0.776 0.30
WE.6 0.681 0.30

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 EAIS.1 0.737 0.30
Effectiveness of EAIS.2 0.762 0.30
Accounting EAIS.3 0.870 0.30 Valid and
0.892
Information EAIS.4 0.762 0.30 Reliable
Systems (EAIS) EAIS.5 0.879 0.30
EAIS.6 0.831 0.30
Source: Processed Data, 2019

The research instruments used in measuring the variables of Information Technology

Sophistication, Understanding of Accounting Science, Work Experience, and the
Effectiveness of Accounting Information have a correlation coefficient value of the total
score of all statement items greater than 0.30. This concludes that all statement items
used in this research instrument are valid, and suitable as a research instrument. The
instruments in this study also had a Cronbach's Alpha Coefficient value greater than 0.60.
This implies that all variables had met the reliability requirements and all instruments could
be used further in this study.

Classical Assumption Test Results

The normality test conducted in this study used the One-Sample Kolmogorov Smirnov
Test by looking for the p-value. The Kolmogorov Smirnov (KS) value is 0.069 and the
Asymp Sig (2-tailed) value is 0.072, which means that the regression equation model is
normally distributed since the Asymp Sig (2-tailed) value is greater than the alpha value
of 0.05 (0.072> 0, 05).

The presence of multicollinearity can be detected with Pearson Correlation as seen from
the magnitude of the Tolerance Value and Variance Inflation Factor (VIF). The variable of
information technology sophistication has a value tolerance of 0.577> 0.1 and a VIF of
1.733 <10, the variable of understanding accounting science has a value tolerance of
0.599> 0.1 and a VIF of 1.670 <10. The work experience variable has a tolerance value
of 0.600> 0.1 and VIF of 1.665 <10. Thus, there is no multicollinearity.

The presence of heteroscedasticity can be detected by Glejser test. If the significance

value is greater than ɑ = 0.05, then there are no symptoms of heteroscedasticity. The
significance value of the variable information technology sophistication is 0.250, the
variable understanding of accounting is 0.298, and the significance value of work
experience is 0.641. These values are greater than 0.05, which means that there is no
influences among the independent variables on absolute residuals so that the model
shows no symptoms of heteroscedasticity.

Results of Multiple Linear Regression Analysis

Linear regression analysis will be used if the number of independent variables is at least
two (Sugiyono, 2018: 275). Based on the results of data processing, the results of multiple
linear regression analysis are illustrated in Table 2 below.

Table 2. Multiple Linear Regression Analysis Results

Variable Coefficient t-statistic Significance Conclusion
Constant 5.297 3.663 0.000

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 Information 0.361 6.332 0.000 H1 is
Technology accepted
Sophistication
(ITS)
Understanding 0.225 2.892 0.004 H2 is
of Accounting accepted
(UA)
Work 0.231 3.151 0.002 H3 is
Experience accepted
(WE)
R-squared 0.564
Adjusted R- 0.555
squared
F-statistic 63.700 0.000
Source: Processed Data, 2019

Based on the results above, the regression equation produces:

EAIS = 5.297 + 0.361 ITS + 0.225 UA + 0.231 WE

Table 2 shows the value of the coefficient of determination, namely the value of Adjusted
R Square, is 0.555, which means that 55.5% of the effectiveness of accounting information
is influenced by the variables used in this study, namely the variables of information
technology sophistication, understanding of work accounting and work experience. The
remaining 44.5% is influenced by other factors outside this study. Table 2 also shows that
the significance value of the F test is 0.000 less than 0.05. It draws to a conclusion that
the model in this study is feasible to use. In other words, the three independent variables
simultaneously influence the dependent variable.

Additionally, Table 2 underlines that the significance value of information technology

sophistication (ITS) is 0.000 smaller than 0.05 and its regression coefficient value is 0.361.
Conclusively, the first hypothesis is accepted, that the sophistication of information
technology has a positive effect on the effectiveness of accounting information.

In addition, the significance value of Accounting Understanding (AU) is 0.004 less than
0.05 and the regression coefficient value is 0.225, so that the second hypothesis in this
study is accepted. It can be concluded that the understanding of accounting science has
a positive effect on the effectiveness of accounting information.

At last, the significance value of Work Experience (WE) is 0.002 smaller than 0.05 with a
regression coefficient of 0.231. Therefore, the third hypothesis is accepted, that that work
experience has a positive effect on the effectiveness of accounting information.

The Effect of Information Technology Sophistication on the Effectiveness of

Accounting Information Systems
This study findings indicate that information technology sophistication has a positive effect
on the effectiveness of accounting information. This means that the improvement of it
increases the effectiveness of accounting information. Sutabri (2014: 3) stated that

41
information technology is a technology used to process data, process data, obtain,
compile, store, manipulate data in various ways to produce quality information, by relevant
and timely information, both of which are used strategic information in decision making for
personal, business, and government.

The results of this study are in line with Lisnawati et al (2017), Dwitrayani et al. (2017),
and Utari et al (2018), arguing that the sophistication of information technology has a
positive effect on the effectiveness of accounting information systems. This implies that
the better the sophistication of information technology, the better a company will
implement the effectiveness of its accounting information systems.

The Impact of the Understanding of Accounting on the Effectiveness of Accounting

Information Systems
The results of this study indicate that the understanding of accounting has a positive effect
on the effectiveness of accounting information. This means that the increasing
understanding of accounting, the effectiveness of accounting information will increase,
and conversely, the decreasing understanding of accounting, the effectiveness of
accounting information will decrease. In producing quality financial reports, qualified
people are needed to carry out tasks in preparing financial reports.

It contended that a person must understand accounting to carry out a process of

identifying, recording, and communicating the final results. This is in line with research
Diani (2014) arguing that the understanding of accounting has a positive effect on the
effectiveness of accounting information systems. This illustrates that the more someone
understands accounting, the better he/she is in implementing the effectiveness of the
accounting information system.

The Impact of Work Experience on the Effectiveness of Accounting Information

Systems
The results of this study indicate that work experience has a positive effect on the
effectiveness of accounting Information. This means that the increase in work experience,
the effectiveness of accounting information will increase, conversely the decrease in work
experience, the effectiveness of accounting information will decrease.

The results of this study are in line with Diani (2014), Adrian (2015), and Paramita (2018),
proposing that work experience has a positive effect on the effectiveness of accounting
information systems. This illustrates that employees with of a lot of work experience will
be more effective in using existing accounting information systems compared to those with
little experience.

CONCLUSIONS

The analysis results and their discussion led to a conclusion that the sophistication of
information technology has a positive effect on the effectiveness of accounting information
for hotel resorts in Ubud. The better the sophistication of information technology owned
by a company, the better a company will implement the effectiveness of accounting
information systems. Understanding of accounting has a positive effect on the
effectiveness of accounting information. This means that someone must understand
accounting to carry out a process of identifying, recording, and communicating the final

42
results in the form of financial reports. Besides, work experience has a positive effect on
the effectiveness of accounting information. This means that one's work experience
greatly influences his/her character of work because the longer a person works, the better
his/her performance.

This study findings will redound to hotel’s benefit in optimizing the effectiveness of
accounting information in their companies by designing regulations and policies to
increase the sophistication of information technology, understanding of accounting
science, and work experience. For educators, this study uncovers teaching materials and
examples of case studies in the Accounting and Business courses in a study of the
sophistication of information technology, understanding of accounting science, work
experience, and the effectiveness of accounting information.

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