Digital Technology Adoption and Accounting Literacy in Financial Recording Practices: A Qualitative Case Study of a Rural Food Micro Small Medium Enterprise (MSME) in Negeri Sembilan, Malaysia

Financial recording is essential for improving the sustainability and financial management of micro, small, and medium enterprises (MSMEs). Previous studies have mainly focused on MSMEs that either lack financial records or adopt digital bookkeeping through formal training, while limited attention has been given to businesses that independently adopt digital recording technologies despite having limited accounting literacy. This study addresses this gap by examining the financial recording practices of 48 Salai Smoke House, a rural smoked-food MSME in Kampung Terachi, Kuala Pilah, Negeri Sembilan, Malaysia. Using a descriptive qualitative case study, data were collected through semi-structured interviews with the business owner and analysed thematically. The findings show that the enterprise uses a Point-of-Sale (POS) system as its primary recording tool, supported by manual verification of cash, QR (MAE/DuitNow), and bank transfer transactions, while maintaining a separate business bank account. Despite this level of digital technology adoption, financial records are not prepared within a structured accounting framework, and the owner has not received formal accounting or financial management training. These findings reveal a critical implementation gap between technology adoption and accounting literacy, indicating that digital tools alone are insufficient to strengthen financial reporting practices. This study contributes to the literature by providing evidence from an underexplored rural Malaysian context and highlights the importance of integrating digitalization initiatives with accounting literacy programmes to support the long-term sustainability of rural food MSMEs.