The impact of digital transformation on accounting practices: Evidence from the context of Bangladesh and global market

Abstract

The purpose of this report is to investigate the effects of digital transformation in accounting with references from Bangladeshi and world markets. It examines the way modern digital technology (such as accounting on cloud, automation, artificial intelligence, ERP system and data analytics) is modernizing accounting processes and operations. Digital transformation of the accounting processes such as financial reporting, audit, tax management, budget preparation, and business decision making is increasingly impacting the whole process of accounting and financial activities, with benefits to accuracy, transparency, timeliness, and accessibility. This report discusses how organizations are implementing digital accounting to enhance operational efficiency and enhance internal controls as well as to enhance manual errors reduction and ensure compliance with both national and international accounting and reporting standards. In Bangladesh, digital transformation in accounting is evolving gradually by adoption of accounting software, online banking, fintech service, e-governance and e-reporting of financial statements. Global organizations are using sophisticated technology such as AI, blockchain, robotic process automation and cloud based financial systems to remodel the accounting practice. In this study, both the prospects and challenges of this digital transformation are addressed. While digitalization results in increase in productivity, efficiency and reduced cost and enhanced real-time reporting and decision-making, there are significant challenges such as threat of cyber-security risk, cost of technology investment, lack of employee skills and threat on data privacy issue. Finally, recommendations have been made on how to increase the capability in accounting using technology, enhance through constant training and develop secure data to have a supportive legal and reporting environment. This study concludes that digital transformation is playing a vital role in the enhancement of accounting, organization competitiveness, and business sustainability worldwide and Bangladesh.