Comparative Analysis of Traditional and Digital Financial Administration Implementation on MSME Financial Management Effectiveness
DOI:
https://doi.org/10.65254/ijese.v2i6.48Keywords:
Financial Administration, MSMEs, Digitalization, Effectiveness, Literature ReviewAbstract
This study aims to compare the implementation of traditional (manual) and digital financial administration in Micro, Small, and Medium Enterprises (MSMEs) and analyze its impact on the effectiveness of MSME financial management. The method used is a comparative literature review examining ten national and international scientific articles published between 2018 and 2025. The analysis is based on effectiveness indicators such as time efficiency, data accuracy, and report preparation speed. The review results indicate that digital systems have higher effectiveness compared to traditional systems across various indicators. However, the implementation of traditional systems remains dominant among MSMEs, primarily due to limited digital literacy, high initial investment costs, and internet accessibility issues in certain regions. Therefore, the conclusion of this study emphasizes the importance of adopting a hybrid system (combining traditional and digital systems) and improving digital financial literacy. This is crucial to ensure that the MSME financial administration process can run more effectively, efficiently, and sustainably.
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Comparative Study of Manual vs Digital Accounting in SMEs. (2025). ResearchGate Preprint. Hakim, A. R. (2024). Digitalisasi Pencatatan Keuangan Usaha Mikro dan Kecil di Indonesia. Jurnal Administrasi Bisnis, 15(2), 101-112. Hendrawati. E., Kholidiah, K., & Pramudianti, M. (2024). Optimizing Digital Accounting to Improve MSME Performance through the Quality of Accounting Information. Journal of Accounting and Finance Research, 12(3), 85-97. Inayah, A. (2025). The Impact of Cloud-Based Accounting Systems on SME Financial Performance. International Journal of Research Review, 13(1), 44-57. International Journal of Recent Research. (2024). Analysis of the Use of Digital Accounting in Micro, Small, and Medium Enterprises. IJRR, 10(4). Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). Free Press. Studi Literatur Digitalisasi UMKM. (2024). Jurnal Ekonomi dan Bisnis Digital, 9(1), 55-68. The Impact of Digital Technology on the Performance of Small Enterprises. (2025). Journal of Business Transformation, 6(2), 144-159. From Manual to Digital: The Evolution of SME Accounting. (2024). International Journal of Accounting Systems, 8(3), 233-248. Zaky, R., & Utami, D. (2025). UMKM Financial Management Strategies in Digital Economy. Global Business Review, 19(2), 202-215.
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Copyright (c) 2025 Basuki Rahmat
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