Accuracy of AI-Based MSME Financial Reporting: A Systematic Literature Review on the Role of User Accounting Competence

Abstract

Technological advancements in Artificial Intelligence (AI) assist Micro, Small, and Medium Enterprises (MSMEs) in overcoming limitations related to financial record-keeping and report preparation. However, the ease of using AI does not automatically guarantee the accuracy of financial information, particularly when users lack accounting competence. This study aims to analyze the accuracy of AI-generated MSME financial reports and identify the role of user accounting competence in ensuring the reliability of the output. A Systematic Literature Review (SLR) method was employed to identify, select, evaluate, and synthesize prior research published between 2022 and 2026. The analysis focused on AI utilization in accounting, the accuracy and quality of financial reports, error risks, and user competence—specifically that of MSME operators. The findings indicate that while AI has the potential to enhance the efficiency, automation, and quality of financial reporting processes, AI outputs remain susceptible to errors if the data, instructions, or transaction contexts are incorrect. User accounting competence is a critical factor, as it determines the ability to provide inputs and to evaluate, verify, and correct AI-generated results. Consequently, AI is best utilized as a tool to assist in financial report preparation rather than as a substitute for the user's accounting competence. The study implies that efforts to improve users' accounting competence and verification skills must keep pace with technological advancements.