Integrated Information System to Revitalize The Cooperatives in Banyumas

Nowadays, cooperatives, in general, have experienced many obstacles in running their businesses so that very few cooperatives have good financial performance. This condition also occurs in several Village Unit Cooperative (VUC) in Indonesia generally and in Banyumas region particularly. Constraints, in general, are in the form of limited financial and non-financial resources. Limited financial resources can be seen from the phenomenon that many cooperatives experience cash flow difficulties to sustain their business either because of the difficulty of competing in selling their products with the competitors from big businesses or also the difficulties in gaining access to financial resources. While non-financial limitations can be seen such as from the quality of human resources and the limitations of business networks that are very far behind when compared to big business. This study proposes a model of the application of accounting information systems in an integrated manner both manually and computer-based to improve the professionalism of cooperative management so that it is expected to be able to survive amid the intense business competition with modern business. In order to achieve research objectives, qualitative approach is implemented on this study where data is collected through in-depth interview, observation, and focus group discussion during 2018 period with 6 VUCs in Banyumas as a sample.


Introduction
The cooperative is a business model that is favored in Indonesia based on the concept of a populist economy built by the founders of the nation since Indonesia got the independence from Dutch colonialism. The existence of cooperatives for the country's economy is also in accordance with the Basic Indonesian Constitution, namely the 1945 Constitution [19]. The populist economic system is an economic system aimed at improving the people's economy by optimizing the processing of resources owned by the State for the welfare of society [16,17). The successful application of populist economic system is marked by the growth of community businesses in the form of Small and Medium Enterprises (hereafter, SMEs) and Cooperatives that are able to provide the daily needs of the community, create job vacancies, and reduce poverty [13].
There are many types of cooperatives in Indonesia where one of them is a village unit cooperative (hereafter, VUC), which is a type of cooperative that operates in almost every subdistrict in Indonesia, especially those located in remote areas far from urban areas. VUC is established to serve the needs of all its members who generally come from sub-district communities where VUC is located in the form of trade units, agricultural production facilities, rice miles, electricity service units, savings and loans, and so on. If a member is active in participating in VUC activities, at the end of the year they will get a bigger share of the remaining results of business operations [13]. So that at the beginning of the establishment of VUC in every sub-district in Indonesia, it was able to give hope to a better livelihood for its members. However, many of these hopes fade along with the changing business environment towards modernization which is increasingly presenting large entrepreneurs in the current era of globalization and information technology including foreign businessmen. Often with limited resources that many VUCs have that cannot survive or just survive with very poor financial performance. Of course, this condition requires a solution that urges VUC as a form of business mandated by the Indonesian primary constitution not to be left behind even more so in welcoming the era of the Millennium Development Goals (MDGs) in 2020.
Based on the above background, this research is intended to provide solution to the various obstacles faced by VUCs in running their business, by taking VUC samples in Banyumas Region to represent similar phenomena in all VUCs in Indonesia. Furthermore, to revitalize VUC, this study will identify the needs of the accounting system that is most suitable to be applied to VUCs in Banyumas Region, both manual and computer-based accounting systems. This will begin with the identification of system requirements, evaluation of formats and accounting procedures suitable for VUC management, until finally a computer-based information system will be designed and applied to VUCs in Banyumas Region.
The results of this study are expected to also be used as an accounting system model that is suitable to be applied to VUC in Indonesia. Thus, it is expected that VUC will be more advanced and professional in managing their business and can compete with larger both domestic and foreign entrepreneurs in Indonesia. In the end, the successful implementation of the results of this study will contribute to the implementation of populist economic system in Indonesia.

Literature Review
The spirit of mutual cooperation is the spirit of the Indonesian people which has been passed down from generation to generation since ancient times. This behavior is usually very strong in rural communities where the spirit of mutual cooperation is still very high. Based on this spirit, VUC is finally established by rural communities as a populist economic movement in accordance with article 33 paragraph 1 [19]. Like cooperatives in general, all VUC members also become customers of all managed business units [14]. This is a special feature of cooperatives that distinguishes it from other types of business entities. More specifically, if other types of cooperatives generally only manage one business unit, VUC manages many business units, such as agricultural facilities, trade, electricity accounts, savings and loans, rice miles, internet cafes, etc. [13]. The existence of various diverse business units is expected to be able to meet the daily needs of all its members so that the existence of VUC truly provides benefits to all its members.
The existence of VUC as described above is also in line with the Instruction of the President of the Republic of Indonesia No. 4 of 1984 Article 1 Paragraph (2) which requires that the existence of VUC in each sub-district is expected to be a business center that is able to meet the daily needs of all sub-district residents. The establishment of the VUC is also intended so that the government can allocate financial and non-financial assistance to communities in rural areas, especially for poor people to address their daily needs. Assistance can be in the form of providing loans without collateral with very low interest and a flexible payment period to finance the small business managed by poor people so that in the end with the development of their businesses they will be able to reduce the amount of poverty in the region. In the end this government effort is also expected to overcome the problem of poverty on a national scale. At the beginning of its establishment VUC had not experienced too many problems and could operate its business properly because the conditions at that time especially in the 1970s to 90s Indonesia economy still tended to be monopolistic under the era of President Soeharto [13]. However, along with the information disclosure and the development of communication technology, the Indonesian economy also continues to be affected by these changes. VUC, which used to get more facilities from the government at that time in the form of a monopoly right to manage some commodities such as cloves, began to change with the opening of a free market and revocation of the monopoly rights. As a result, many VUCs are unable to adjust to the changing dynamic business environment and many even went bankrupt.
This research was conducted to try to present a model information system that could be used to revitalize VUC by referring to various previous relevant studies as already done by [3,9,12,15,18,20,21]. Accounting plays a critical role in the success or failure of business. Accounting systems are responsible for recording, analyzing, monitoring and evaluating the financial condition of companies, preparation of documents necessary for tax purposes, providing information support to many others organizational functions. Accounting systems provide a source of information to owners and managers of any industry including VUC for the use in measuring financial performance [21].
Accounting is how a business accounts for the use of its resources to achieve its goals [2]. If we accept that as a reasonable definition then it would follow that an accounting approach designed for investor owned business does, at very best, an imperfect job for cooperatives. By and large the standard approach to accounting is a set of measurement tools whose main thrust is to account for how efficiently a business uses it resources to maximize its return to its investorsits return to capital. At worst standard accounting distorts cooperative's business decisions away from their purpose, meeting member and community need, and fails to reflect the values and principles that came with the choice of the co-operative business model. Almost the entire body of accounting practice, as we now know it, is focused on how an investor-owned company uses its resources to achieve its goal, maximizing shareholder value and ensuring that reporting to shareholders on the use of resources is clear and honest [2].
As a business structure or 'technology' the investor-owned corporation has only one purpose and one core goalto maximize the return to invested capital. That is what the investor business community calls "the bottom line." There are, to be sure, boards and managers of investor owned firms who insert 'other' goals based on their personal values, but their scope of action is limited and if the pursuit of those 'other' goals is perceived to interfere with maximizing the rate of return on capital managers or boards are removed and/or the flow of capital to them is reduced and goals adjusted to meet investor-owner expectations. In an investor-owned company pursuit of goals other than the core goal, maximization of return on invested capital, is a deviation from the purpose of the business.
The traditional view of small business including cooperative record keeping suggest that it is a paper based and hand of to the accountant firm to prepare the annual tax return. This competitive advantage, over the years, information technology had played a major role, changing the nature of business who knows its effects. With the introduction of new technology and more user friendly software, computerized accounting system (CAS) appears to reduce the problems in book record keeping practice [19]. Furthermore, with the new and rapid financial information, new updates and changes will be available for others in making decisions.
The application of computerized systems in business information processing has been very significant to the accounting profession decades ago especially as it relates to financial  [20]. However, its applicability to SMEs and Cooperative began to gain relevance in the twenty-first century especially in developing economies. VUC like any other profit-seeking establishment must strive for survival through business performance enhancement. They must engage in business strategies aimed at providing competitive advantages in highly competitive societies in which they exist. The application of IT to the accounting profession has been a subject of study both in academia and practise. Studies have shown considerable efforts in examining the extent to which companies including Cooperative across the world has adopted computerized accounting.
Several previous studies in Indonesia have implemented computer-based accounting information systems at microfinance institutions such as the Baitul Mal wa Tamwil (BMT) as done by [18]. The study designed and implemented a computer-based accounting information system that was suitable for BMT financial management so as to be able to manage its business professionally like modern banking.
A study conducted by [20] provides empirical evidence on the existence of Computer Based Accounting System (CBAS) in Nigerian SMEs. This study empirically examined the use of computerized accounting systems by Nigerian SMEs by evaluating finance and accounts executives who owes primary responsibilities for financial transactions processing. It considered the extent of CBAS by responding firms, types and classes of commercial applications in use, mode of transactions processing and factors with greatest incidence on the use of automated systems by the underlying companies. Responding firms were categorized into their manufacturing, IT services, wholesale and retail, agriculture, construction and mining, hotel and hospitality, medical services, and general services industries. Findings showed that the use of CBASs is highly prominent in Nigerian SMEs. Larger proportion of responding firms combine manual and computerized accounting systems and those who are fully computerized with webenabled applications were found to be of insignificant proportion. The forms of commercial accounting packages shared across SMEs were essentially Turnkey Systems (i.e. general accounting systems, special-purpose systems, and office automation systems); Backbone systems; and Vendor-Supported Systems. The study provides evidence about the challenges faced by users of CBAS. Limits identified as most significant were inaccuracy of reports, inability to support large volumes of data, lack of constant power supply, and lack of data filtering (import and export function). In order to obtain users response on ways to achieve improvement by software developers, evidence suggested that the most important factors were the need to provide instant and easier access to frequent fixes and upgrades, and availability of multiple window modes. Finally, this study challenged professional accountants as they must continually horn their IT skills without which their applicability of their accounting knowledge would rapidly become obsolete.
Similarly, the study conducted by [15] to evaluate the factors affecting the implementation of computerized accounting system (CAS) for SMEs in Melaka, Malaysia. The findings reveal that CAS adoption rate in SMEs in Melaka is high. The findings indicate that CEO innovativeness; perceive ease of use and business competitiveness negatively correlated to the adoption of CAS. Results reveals that only perceive usefulness are significantly positive correlated to CAS adoption. Therefore it can be deduced that adoption of CAS among SMEs in Melaka is caused by its usefulness. However, the advantages by using the CAS were not fully utilized by CAS adopters. As for the adoption of CAS, the findings reveal that almost 80% of the SMEs have adopted CAS at various stages of implementation. Moreover, in their study of computerized accounting systems in Australia presented a report for the small enterprise association of Australia and New Zealand (SEAAN) 16th annual conference in Ballarat [1]. Using the result of data collected from 122 firms that uses CAS and 99 non-users, evidence discovered that about 96 percent of the SMEs install and use generalized packages ranging from "mind-your-own-business", QuickBooks, cash-flow manager and attaché while the rest 4 percent make use of tailor-made systems. In a related development, [10] explored the challenges faced by the users of SBA applications in their accounting functions. Although external consultants play significant roles, major issues identified by SMEs in using the software amongst user confusion about software complexity, inadequate user-support from software provider, insufficient accounting knowledge and skills, work pressure and lack of IT and financial resources, owner/manager accounting knowledge. One study in Spain which contradicted majority of positions on the use of CBAS by SMEs was that conducted by [4]. On the impact of AIS on performance measures, the authors revealed that there is no significant relationship between SMEs productivity and the use of computer-based accounting systems. The findings appeared characterized by inherent bias in recognizing the concept of productivity. Although the researchers ascertain the qualifications in productivity of AIS to mean efficiency, technological change and change of scale, only staff-cost was connected.
Furtermore, a study examined the relationship between ICT and Accounting system of SMEs in Nigeria [9]. The study adopted the survey research design, which involves the collection of data from the Accounting department of SMEs in Nigeria. Primary data was employed and copies of questionnaire were administered to respondents for the purpose of this study. Findings revealed a significant relationship between ICT knowledge (Microsoft tools) and accounting system of SMEs in Nigeria also, the study further reviewed significant relationship between ICT adoption (accounting packages) and Accounting system of SMEs in Nigeria. The study therefore recommended that Management of SMEs must periodically send employees on training in the use of ICT.
A study by [3] is on financial reporting in Small and Medium Enterprises (SMEs) in Nigeria: challenges and options [3]. The study was carried out to determine the challenges facing Small and Medium Enterprises (SMEs) in adopting effective financial accounting reporting in Nigeria and to ascertain the contribution of poor credit facilities to inadequate accounting records in SMEs in Nigeria. Survey method and time series data were used and data were collected through the use of questionnaire and CBN statistical bulletin. Data generated were analyzed with simple percentage table. The study found that the challenges facing SMEs in preparation and presentation of financial reports are: inadequate accounting books and records, manpower, accounting system and non-running their transactions through the banking system. The study recommends among others that since keeping proper books of account and preparation of financial records can only be done by professional accountants, the two main bodies in Nigeria: ICAN and ANAN should encourage their members to offer free professional service to SMEs in Nigeria.
Again, a study conducted by [21] aims to examine and evaluate the current status of adopting and implementing the accounting system and practices of Small and Medium Enterprises (SMEs) in Rangpur region, Bangladesh as well as to analyze the extent to which accounting information is being used in measuring financial performance by SMEs with limitations. The findings of the study reveal that only 20% of enterprises follow the accounting system directly and the other 80% of the enterprises follow the accounting system indirectly. Correlation analysis signposted that among the seven selected independent variables keep accounting records, prepare financial

Results and Discussion
To be able to design a suitable system applied in supporting the management of the VUC business in Banyumas, a system development life cycle approach is used which includes identification, design, implementation, evaluation and control. This activity will be carried out for two years, i.e, 2018 and 2019. What has been done in this research in 2018 is the system identification and design phase. From the identification of system requirements carried out by involving a system analyst and VUC management in Banyumas Region. This process is started by evaluating the conditions of existing system in the VUC and identify the drawbacks of exixiting system. It aims to provide information that can help in designing a new cooperative accounting information system which is better to manage VUC in Banyumas region.
Based on data collected during the identification phase, this study succeeded in designing an appropriate accounting system to be applied to each VUC in the Banyumas region. The system is designed in general while the application can later be modified according to the conditions of each VUC in Banyumas. The system design includes a manual and computer-based accounting system. The manual accounting system in its application is guided by a manual system which includes discussion of general information, summary of accounting policies, account guidelines and financial report formats, explanation of account codes, book reporting and closing procedures, and forms. While for computer-based accounting information systems, this research develops accounting software and instruction manuals that are appropriate for using computerbased information systems. The manual system for VUC management in the Banyumas Region is explained in several sections as follows.

General Information General information presents: (a) Description
The description explains overview of the VUC, business activities, and business assets owned by VUC.

(b) Organizational Structure
This section presents the organizational structure of VUC which generally includes the annual meeting of members, supervisors, administrators, business unit managers, etc.
new workbook that includes workbook journals, chart of accounts, trial balance after closing the previous period, general journal, general ledger, trial balance, work sheet balance sheet, balance sheet, income statement working paper, statement of changes in equity working paper, income statement, and statement of changes in equity. By implementing both manual and computer based accounting system, it is expected that the VUCs in Banyumas are able to maximize their business's value, an other purposes such as seek financial health and meet member and community needs. It is also expected to contribute to the community and society by operating in a manner consistent with co-operative values and principles. If a co-operative is to be successful it must meet this wider range of goals. Managers then logically need to account for how they use resources not only for the financial health of the business (an essential element of meeting other goalsbankrupt co-operatives do not meet member needs) but must account as well for the efficient use of resources to achieve other goals that are co-equal.
In another word, the implementation of both manual and computer based accounting system for managing VUC in Banyumas region implies an additional requirement: co-operative managers need to have a set of tools, not just to measure the use of resources used to achieve multiple goals, but a set of tools to assist them to keep multiple goals. They also need, as part of that wider set of tools, a subset of tools to determine what constitutes 'financial health'. Using these systems in VUC will support the achievement of VUC business purpose and measures performance by maximizing the financial return of VUC.

Conclusion
This study aims to evaluate the need for an accounting system for VUC in the Banyumas region by applying a qualitative approach. Then, the data is analyzed by interactive method following several steps such as collection, reduction, presentation, and conclusion. After identifying the weaknesses of the exixting system that has been applied in the of VUC, the system requirements can be identified as desired by the managers of VUC in Banyumas. So that with the collection of data on system requirements, this study succeeds in designing a cooperative accounting system that can be applied in the management of VUC business in Banyumas which includes a manual accounting system and a computer-based accounting system.
With the implementation of the system on VUC in Banyumas, it is expected that cooperative accounting information systems that have been designed can help employees manage transactions in the VUC so that it does not require a long time and reduce the occurrence of errors in recording transactions. Moreover, the results of cooperative accounting information systems that have been designed are expected to be able to meet all information needs for VUC management so that the entire processing of transactions in VUC management will be available correctly and effectively. Furthermore, cooperative accounting information systems that have been designed are expected to produce management accounting reports that can help make decisions regarding the VUC business process.
In the end it is expected that by using this system VUC management in the Banyumas region would be more professional and continue to grow in managing its business. Ultimately, this condition will be able to create job vacancies, prosper the entire VUC members particularly from the poor people, so that the success of the cooperative business will contribute to the government's efforts in alleviating poverty.