FinTech Integration and Digital Accounting Systems in Enhancing Financial Performance of Startups

HRMARS - This study investigates the impact of FinTech integration and technological readiness on financial performance, with particular emphasis on the mediating role of digital accounting systems in startup organizations. While prior research highlights the importance of digital transformation, limited attention has been given to how accounting systems facilitate this relationship. A quantitative research design was employed, and data were collected from 217 respondents. The data were analyzed using SPSS, including descriptive statistics, correlation, regression, and mediation analysis through bootstrapping. The findings indicate that FinTech integration and technological readiness have significant positive effects on financial performance. Among the variables, digital accounting systems demonstrate the strongest influence on financial outcomes. Furthermore, the mediation analysis reveals that digital accounting systems significantly mediate the relationships between FinTech integration, technological readiness, and financial performance, indicating that technological benefits are realized more effectively through structured accounting practices. The study concludes that startups can enhance financial performance by aligning FinTech adoption with strong digital accounting systems and technological capabilities.