Accounting Literacy as Moderator of Financial Statement Digitalization and Business Sustainability

Muh. Irfandy Azis (Department of Accounting, Faculty of Economics and Business, Universitas Borneo Tarakan, Tarakan City)
Erick Karunia (Department of Management, Faculty of Economics and Business, Universitas Borneo Tarakan, Tarakan City)
Roni Padliansyah (Department of Accounting, Faculty of Economics and Business, Universitas Borneo Tarakan, Tarakan City)
Rahmi Nur Islami (Department of Management, Faculty of Economics and Business, Universitas Borneo Tarakan, Tarakan City)
Cheng-Wen Lee (Department of International Business, Chung Yuan Christian University, Taoyuan City, Taiwan)
Ang Hong Loong (Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah, Kinabalu City, Sabah, Malaysia)

Jurnal Akuntansi
Vol. 30 No. 3 (2026): September-December 2026

This study examines the effect of financial statement digitalization and accounting literacy on the business sustainability of micro, small, and medium-sized enterprises (MSMEs), and the moderating role of accounting literacy in the relationship between financial statement digitalization and business sustainability. Quantitative research approach was employed using survey data collected from MSME owners in Tarakan City. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that both financial statement digitalization and accounting literacy have positive and significant effects on business sustainability. Furthermore, accounting literacy significantly moderates the relationship between financial statement digitalization and business sustainability, although the moderating effect is negative. These findings suggest that the benefits of financial statement digitalization are more pronounced among MSMEs with relatively lower levels of accounting literacy. The study highlights the importance of aligning digital transformation initiatives with the accounting capabilities of MSME owners to enhance long-term business sustainability.