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Abstract/Highlight: In the era of globalization and competitive economy, it is important that business owner understand and able to analyze accounting information for the sustainability of their enterprise. However, many of them are still unable to fully utilize accounting information. Therefore, this study will discuss on innovation ideas that could help business owner to understand and utilize accounting information at its best by the assistance of artificial intelligence and machine learning.
Keywords: Accounting system, Artificial intelligent, Optical character recognition, SME
Introduction
Small and Medium Enterprises (SMEs) play an important role towards advancing a country's economy, and that including Malaysia. However, due to many unsolved critical problems, a large number of SMEs are unable to compete and maintain its existence long enough as one of the industry players. This is a phenomena that should be worried as SMEs form an essential economic entity and often known as an engine of economic development. In Malaysia, SMEs have been widely recognized as the backbone of Malaysia economic due to their strong contributions in promoting local product growth especially towards industrial expansion and progression.
Problem faced by SMEs
The first problem that is affecting SMEs is the lack of accounting knowledge. Currently, most of SMEs outsourced their accounting work and functions due to lacking of accounting knowledge and skills among the staff (Ismail, 2002). As this knowledge is critical to remain competitive in the corporate environment (Jayabalan, Raman, Dorasamy & Ching, 2009), the lacking may distort ability to make detailed and critical analysis of their financial performance especially in terms of cost management. Another issue is pertaining the lack of ICT adoption. Significant number of literature indicates a low level of usage of ICT among SMEs as they refuse to adopt ICT as part of their operation due to the system difficulties and pricing which eventually does not meet their needs (Davis, Dunn, & Boswell, 2009; Hashim, 2007). These problems may bring negative impact towards the sustainability and operational matters of the SMEs such as difficulties to...