Digital Accounting Literacy and Sustainable Financial Behaviour in MSMEs: A Conceptual Perspective

Micro, Small, and Medium Enterprises (MSMEs) are fundamental instruments of inclusive economic development. It is often used to achieve financial resilience due to myriad issues, starting from the lesser degree of financial literacy they possess, along with inadequate competencies in digitising their business. Given the digital transformation age, enhancing financial literacy through digital means is also a meaningful way to improve the sustainability of MSMEs. In its significant new research piece, the bank discovered that while previous studies have centred on the mechanics of embracing digital tools, very little thought has gone into how good people are at using them to strengthen their financial resilience. Thus, this study seeks to develop a conceptual framework that connects digital accounting literacy with the financial resilience of MSMEs. This study uses a systematic literature review to identify key themes, such as adaptive financial planning, digital risk management, and data-informed decision-making. These constitute how digital literate practices empower MSMEs to manage uncertainty. Major themes were identified and descriptively analysed to infer how financial inclusion insights, resilience theory concepts, and digital literacy interact conceptually in the formation of various pathways through which MSMEs acquire adaptive financial behaviours. Findings from the proposed conceptual model have important practical implications for policymakers and educators in designing interventions that enhance digital capability to achieve financial resilience.