Factors affecting digital accounting in MSMEs using second-order confirmatory factors analysis method

The application of digital accounting can increase accessibility to business information, and this allows stakeholders to make ‎better decisions, thereby creating a sustainable business. There are still many MSME actors who do not realize that well-organized financial records and bookkeeping are important. When micro business actors develop and must be managed ‎professionally, business actors are ready with the modern management concept. This study aims to analyze the influencing ‎factors of the implementation of accounting digitization for MSMEs in Kerinci Regency. Using a quantitative approach with ‎secondary data, this study involved a sample of 100 MSMEs in Kerinci Regency. Sampling was carried out by the purposive ‎sampling method, and data analysis was conducted using the AMOS program. The findings of the study show that technology, internal ‎organizations, regulations, and economic situations have a positive influence on the application of digital accounting to MSMEs ‎in Kerinci Regency. These findings emphasize the importance of these factors in driving the growth and sustainability of ‎MSMEs in Kerinci City and provide valuable insights for future policies and practices. This research also provides important ‎insights for policymakers and MSMEs actors in designing strategies to optimize‎.