<![CDATA[Advancements in digital technology have transformed the management of Micro, Small, and Medium Enterprises (MSMEs), particularly regarding financial record-keeping. Some MSME owners still rely on manual recording methods, which carry risks such as recording errors, the commingling of personal and business finances, and difficulties in consolidating financial data. This study aims to analyze the use of the BukuWarung application and the role of digital literacy in enhancing the effectiveness of financial record-keeping for MSMEs in Sidoarjo Regency. A quantitative descriptive approach was employed, utilizing data from 25 MSME owners who use the BukuWarung application. The data were analyzed descriptively based on respondent characteristics and the mean scores for indicators across three variables: BukuWarung usage, digital literacy, and the effectiveness of financial record-keeping. The results indicate that the use of BukuWarung facilitates faster and more practical record-keeping, while the digital literacy findings show that respondents possess basic proficiency in using digital devices and applications. Regarding the effectiveness of financial record-keeping, the indicator for tracking income and expenses achieved the highest mean score of 4.12. These findings demonstrate that the use of financial record-keeping applications, combined with digital literacy skills, can foster more organized financial record-keeping processes for MSMEs. The study emphasizes that increased adoption of digital applications must be accompanied by strengthened digital literacy to enable MSME owners to utilize financial record-keeping features more effectively.]]>
