Inventory Accounting Digitization: A Qualitative Study of MSMEs in the Digital Transformation Era

Abstract

This study discusses the application of inventory accounting digitization in MSMEs amid the growing demand for digital transformation, especially considering that many micro-businesses still rely on manual recording, which is prone to errors and does not provide real-time data for decision making. This study uses a qualitative method with a descriptive approach through observation and documentation in three MSMEs, namely Pusat Rasa Es Pisang Ijo, UMKM Petis Khas Sidoarjo, and UMKM Segar Rujak Serut, to understand inventory recording practices, forms of technology adoption, and the obstacles they face. The results show that digitization has begun to be implemented through simple applications and the use of spreadsheets for recording stock, transactions, and financial reports, although the systems used are not yet fully integrated and still rely on the direct role of business owners in data input. The findings also show that digitization provides benefits in the form of increased recording accuracy, real-time information availability, time efficiency, and ease of documentation, but the adoption process is hampered by low digital literacy, limited funds for professional accounting software, and a lack of administrative staff.