Digital Accounting System to Improve Financial Transparency in An Employee Cooperative

Abstract

Originality/novelty: This study demonstrates how combining an accessible, low-cost digital tool (Google Sheets) with a member-facing WhatsApp distribution routine can effectively bridge the financial transparency gap and mitigate information asymmetry in small cooperatives. 

Objective: To evaluate the implementation of a low-cost digital accounting information system designed to replace manual handwritten records and restore member trust in an employee cooperative's governance. .

Methods/approach: Framed as participatory action research with asset-based elements, the project spanned three phases: needs assessment, system design/implementation, and training/mentoring. Analyzed through the lens of TAM, digital transformation, and cooperative governance theory, data were gathered from four informants, observations, document analysis, and post-training questionnaires, evaluated using thematic analysis and triangulation.

Results: Within four weeks, monthly financial reports became readily available to all board members. Post-training evaluations showed that 92% of respondents understood how to operate the system, while 85% expressed increased confidence in the cooperative’s financial transparency, promoting active member participation during meetings.

Implications: The study highlights that small-scale cooperatives can achieve meaningful digital transformation and stronger governance without high financial investment, provided design simplicity, practical capacity building, and regular disclosure routines are prioritized.