Do Free Accounting Applications Enable Inclusive Financial Management for MSMEs?

This study examines the potential of free and open-source digital accounting applications in facilitating inclusive and effective financial management for micro, small, and medium-sized enterprises (MSMEs) in Indonesia. It is important due to the increasing digitalisation of finance and the use of mobile-based platforms such as BukuWarung, TemanBisnis, and SIAPIK as cheaper alternatives to traditional bookkeeping methods. Consequently, this paper employs a qualitative exploratory methodology, gathering data through semi-structured interviews, focus group discussions, and document analysis, involving MSME owners and financial managers with a minimum of two years of operational experience. Participants’ experiences, perceived benefits, and barriers to adoption, as viewed through the lenses of financial management theory, the Technology Acceptance Model, and digital transformation principles, were examined to explore the moderating effects of digital literacy and device accessibility. The results demonstrate that digital accounting technology enables accurate recording, simplifies budget management, facilitates informed decision-making, and enhances regulatory compliance. Therefore, to ensure the sustainability of technology, a strategic plan is needed to address data security issues caused by a lack of user training and the digital divide.