Navigating digital accounting techniques to improve the financial reporting quality of small and medium-sized enterprises in Nigeria

Abstract

This study examined at how digital accounting techniques improves the financial reporting quality of small and medium-sized enterprises (SMEs) in Nigeria. Structured questionnaires were used to gather primary data from 2,100 digital accountants and computer expert using a quantitative approach. The association between digital accounting and the quality of financial reporting was assessed using statistical techniques such as multiple regression models, analysis of variance (ANOVA), mean, and standard deviation. The findings revealed that 89.6% of respondents agreed that digital accounting greatly improves the timeliness, correctness, and dependability of financial reports. The results of the regression show that automation and integrated data analytics have a favorable impact in enhancing the financial reporting quality, which is consistent with other research highlighting the importance of digitization in contemporary accounting procedures. The study however advocated for strategic investments in digital infrastructure, ongoing training, and government incentives to accelerate digital transformation in Nigeria's financial reporting landscape. The findings served as a foundation for further research exploring advanced technologies like artificial intelligence and block-chain in accounting practices. Despite obstacles like initial investment costs and cyber-security concerns, the study emphasized the necessity for SMEs to adopt digital accounting solutions to improve efficiency and compliance with international financial reporting standards.