The Role of Digital Accounting Systems in Enhancing Financial Decision-Making Among Businesses
DOI:
https://doi.org/10.66461/ymfdsv21Keywords:
Digital Accounting Systems, Accounting Information Systems, Financial Decision-Making, Cloud Accounting, Artificial Intelligence, ERP, Digital TransformationAbstract
The rapid advancement of digital technologies has transformed accounting practice by improving the efficiency, accuracy, accessibility, and analytical usefulness of financial information. Digital accounting systems, including cloud-based accounting software, enterprise resource planning systems, accounting information systems, automation tools, artificial intelligence, and business intelligence applications, have become important organizational capabilities for supporting financial decision-making and performance management. This study examines the relationship between digital accounting systems and financial decision-making effectiveness among businesses. It adopts a quantitative research approach based on data collected from 250 business owners, accountants, financial managers, and finance officers. Digital Accounting Systems were measured through system quality, information quality, cloud accounting adoption, automation capability, and artificial intelligence integration, while Financial Decision-Making Effectiveness was measured through budgeting quality, investment decision-making, financial forecasting, risk assessment, and strategic planning. The findings indicate that digital accounting systems are positively associated with financial decision-making effectiveness, with information quality, system quality, cloud-based accessibility, automation capability, and artificial intelligence integration all linked to stronger perceived decision-making effectiveness. The correlation and regression results show that digital accounting system capabilities are strongly and positively associated with financial decision-making effectiveness. Information quality emerged as the strongest predictor, followed by system quality and automation capability. The study concludes that digital accounting systems are strategic decision-support resources that are positively associated with budgeting, forecasting, investment evaluation, risk assessment, and strategic financial planning effectiveness. The findings provide theoretical and practical implications for accounting information systems, digital transformation, and financial management research.
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