The Role of Digital Accounting in Transforming Corporate Finance in the Modern Era

Abstract

This study examines the transformative role of digital accounting in corporate finance in the modern era, focusing on the integration of technology and its impact on financial processes. Utilizing a qualitative approach through a literature review, the research explores how digital accounting tools, such as cloud computing, artificial intelligence (AI), and blockchain, have reshaped corporate finance by enhancing efficiency, transparency, and decision-making. The findings reveal that digital accounting significantly reduces manual errors, accelerates financial reporting, and improves data accuracy. Moreover, technologies like AI-powered analytics allow for real-time insights, enabling businesses to make informed strategic decisions. Blockchain, on the other hand, enhances security and transparency in financial transactions, thus fostering trust in corporate governance. However, the study also highlights challenges such as cybersecurity risks and the need for continuous upskilling of the workforce to adapt to rapidly evolving digital tools. Overall, this research emphasizes the critical role of digital accounting in driving financial innovation and competitiveness in the modern business landscape. It calls for corporations to invest in digital transformation strategies to harness the full potential of these technologies in corporate finance.