TAF PUBLISHING

SMEs (Small Medium Enterprises) have significant contribution in Indonesian economy. Therefore, it is necessary to analyze the factors that affect SMEs’ performance. The purpose of this study is to analyze the impact of the use of accounting information, managerial performance, and employee performance towards SME performance. The population of this study is SMEs located in District Purworejo, Central Java, Indonesia. Using convenience sampling method, there are 141 SMEs that are determined by Slovin formula. Multiple regression technique is used as an analysis technique. The study shows that the use of accounting information and employee performance has positive significant effect on the performance of SMEs, whereas managerial performance has no significant effect on the performance of SMEs. Based on the research, the role of operational employees is greater than the manager. Their skills to process the raw materials and to serve customers are very important in SME. The result can be used for SME's managers to increase the use of accounting information as a basis to take enhanced business decisions, and to improve their employees’ performance by training and setting the reward system to get better productivity. By doing these, the performance of SMEs will be increased.