ABSTRACT
The aim of this study is to determine whether sharia accounting can be understood and already practiced by MSMEs in East Java Province. This research is a qualitative study that examines the perceptions of sharia accounting in MSMEs, especially in East Java Province. The data was processed from the results of the online focus group discussion (FGD) studies with MSMEs owners. The result shows a positive perception of the owners of MSMEs on the implementation of Islamic accounting. Although MSME owners do not understand the principles of sharia accounting perfectly, they have started to carry out business as stated in sharia accounting. As Muslims, the owners of MSMEs understand sharia accounting can help them carry out buying and selling transactions according to the Al-Qur'an guidelines. Sharia accounting encourages MSME owners to maintain the quality and sustainability of the business.
