The Role of Cognitive Ease in the Utilization and Preparation of Accounting Information in SMEs

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in Indonesia’s economy, particularly in job creation and reducing unemployment. Despite their significant contribution, MSMEs face a persistent challenge in the limited preparation of financial reports, which hampers their ability to assess and ensure financial performance with certainty. Addressing this issue, this study investigates the influence of cognitive ease—conceptualized through repeated experience and avoidance of cognitive strain—on the utilization and preparation of accounting information by MSMEs. The research focuses on 400 MSMEs in Mataram City, employing the Partial Least Square (PLS) method with SmartPLS 4.0 for data analysis. The findings reveal that repeated experience exerts a significant positive effect on both the utilization and preparation of accounting information. In contrast, the avoidance of cognitive strain does not significantly impact the utilization of accounting information but demonstrates a significant negative effect on its preparation. These results underscore the critical role of repeated experience in improving MSMEs’ accounting practices, suggesting that consistent engagement with accounting processes enhances their effectiveness. The study highlights the need for targeted interventions to bolster cognitive familiarity with accounting tasks, paving the way for more reliable financial reporting among MSMEs.