Measuring User Satisfaction with the Financial Reporting Quality in Small and Medium Enterprises in Kurdistan Region of Iraq

Abstract

The research aims to measure the level of financial reporting quality and the degree of its impact on beneficiary satisfaction. To achieve this, 325 questionnaire responses collected from retail, manufacturing and services SMEs were analysed using a multiple regression analysis approach.  The study findings demonstrated that the perceived transparency, timeliness and accuracy of financial reporting, and stakeholder engagement in the reporting process significantly enhance user satisfaction in financial reporting. These findings emphasize the need for SMEs to prioritize transparency, timeliness, accuracy, and stakeholder involvement in their financial reporting practices. It is recommended that SMEs should implement internal controls and technological solutions to streamline their financial reporting processes, ensuring that reports are consistently prepared and delivered on time to meet stakeholder needs and improve overall satisfaction. Apart from actively involve key stakeholders throughout the financial reporting process, SMEs must improve the accuracy of their financial reporting processes by adopting robust internal controls and frequent audits.