Research Article
Revealing the Sharia Accounting Practice at East Java MSMEs to Support Halal Business Climate
@INPROCEEDINGS{10.4108/eai.22-7-2020.2307897, author={Dhika Maha Putri and Sheila Febriani Putri and Dian Syariati and Imamul Huda and Mahirah Mahirah}, title={Revealing the Sharia Accounting Practice at East Java MSMEs to Support Halal Business Climate}, proceedings={Proceedings of the 3rd International Conference on Economics, Business and Economic Education Science, ICE-BEES 2020, 22-23 July 2020, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICE-BEES}, year={2021}, month={5}, keywords={sharia accounting financial management msmes practice guidelines}, doi={10.4108/eai.22-7-2020.2307897} }- Dhika Maha Putri
Sheila Febriani Putri
Dian Syariati
Imamul Huda
Mahirah Mahirah
Year: 2021
Revealing the Sharia Accounting Practice at East Java MSMEs to Support Halal Business Climate
ICE-BEES
EAI
DOI: 10.4108/eai.22-7-2020.2307897
Abstract
The essence of life in Islam is the condition of a person when he or she returns to God or we know as the statement of innaalillaahiwainnaailaihiraaji-uun, which means that we belong to God, and to Him, we return. Sharia accounting does not only function as an earthly instrument but also as an instrument of prayer and dhikr to awaken divine awareness. With Sharia accounting, financial management is no longer a separate element from the spiritual concept so that its practice can help one to remain istiqomah until the time of return to Allah SWT. Through the data collected by interviews and focus group discussions, this study describes the understanding and practice of sharia accounting at MSMEs in East Java. By using the information obtained from this study, it is hoped that in the future appropriate strategies will emerge to encourage MSMEs to practice sharia accounting. In fact, MSMEs don't understand much about what is sharia accounting and still find it difficult to practice it in financial management. This condition occurs because there are a very few guidelines that describe sharia accounting practices. The results of the study suggest the need for a sharia accounting practice model and guidelines according to the conditions of the MSME. The implementation of sharia accounting is believed to be able to improve the quality of MSME financial management because it is accompanied by divine awareness in every business decision.
