The role of accounting in financial inclusion to integrate the informal economy

2022-11-24 09:32:33 منوعات ...

The role of accounting in financial inclusion to integrate the informal economy: By analysing the relationship between accounting and financial inclusion, it was found that accounting is one of the tools are applying financial inclusion in society that works to integrate the informal economy of individuals and institutions within the formal economic structure of the state and ensures the development of the service provided by financial institutions it's included in its scope due to the availability of the competitive element between institutions,it also helps in improving the standard of living within the country and reducing poverty rates by containing certain segments within society, such as the poor and low-income and owners of small, medium and micro enterprises. Accounting plays an important role by paying attention to accounting information technology systems help in enhancing consumer financial protection as one of the requirements of financial inclusion. Afield study on a sample of commercial banks in the public and private sectors showed that the sample size was (343) individuals accounting technology systems have a significant effect on activating the requirements of financial inclusion in commercial banks in the public sector, and the amount of this effect is (81.1%), where there is an effect of accounting information technology systems to achieve financial stability as a requirement for financial inclusion in commercial banks in the public sector. Therefore, it's necessary to create a program specialized in financial education for workers in the informal sector, aiming to familiarize them with financial concepts, the financial products and services offered by banks, how to benefit from them, and the need to pay attention to consumer financial protection to build trust between the informal sector and the banking sector, thus encouraging financial inclusion. 

Estimates vary about the size of the informal economy in Egypt. accordind to the estimates of its economic wage, Frederick Schneider,in the informal sector in Egypt , it represents (60%_40)of the Egyptian GDP, this means that about half of the economy and income - generation activities in Egypt fall within the scope of the informal economy. Therefore it's necessary to encourage financial inclusion to integrate that sector of the informal economy, which provides an umbrella of protection and support for the most needy and low-income groups. It also works to support the small and micro enterprises sector by providing a financial framework  for the growth of projects in this sector, financing its growing needs and allowing this sector  to be gradually transformed into an essential component of the Egyptian economy. Therefore, it's necessary to raise the efficiency and effectiveness of accounting information systems to enhance the activation of the requirements of financial inclusion ,because the lake of weakness of the application of accounting information system stands as an obstacle to the process of financial inclusion. It is necessary to use accounting information systems for small ,medium and micro enterprises to facilitate their integration into the formal economy as well as to benefit from modern information technology in the permanent development of electronic accounting information systems applied in the banking sector and enabling it to play its role as a tool for the application of financial inclusion. This reflects the important role represented by accounting in financial inclusion to integrate the informal sector into the structure of the economy. therefore , the greater the interest in developing the Field of the accounting profession   , the more it will contribute to increasing the financial stability of the country's economic institutions.

نحن نقدر تعاونك
من فضلك اختر نوع التجاوز

شاهد ايضا


  • اكتب تعليق

مواضيع جديده

افضل 30 كاتب هذا الاسبوع

اكثر المواضيع مشاهدة علي الاطلاق