DIGITAL ACCOUNTING TRANSFORMATION IN SMES: A FRAMEWORK FOR RELIABLE FINANCIAL REPORTING

Abstract

Background: Digital accounting is often introduced as a technology project, yet its value depends on whether transactions become more complete, traceable and useful for decisions. For SMEs, the central problem is not the absence of software; it is the gap between software adoption and reliable accounting routines. Aims: This article examines the mechanisms that connect the topic to organizational or policy performance and identifies the conditions that make those mechanisms stronger or weaker. Research Method: A structured narrative review integrates peer-reviewed research with authoritative policy, statistical, and professional sources, including OECD (2023); Verhoef et al. (2021). Sources are coded by outcome, mechanism, boundary condition, and practical implication. Results and Conclusion: The synthesis indicates that outcomes are heterogeneous. Automation can make weak processes move faster. If account mapping, document discipline, access rights and review responsibilities are unclear, a digital system may produce reports more quickly without making them more dependable. Six recurring themes show that implementation quality, information, capability, and institutional context frequently matter as much as the headline policy or technology. Contribution: The article offers an evidence-based framework for small and medium- sized enterprises that translates the literature into decision principles without claiming primary data that were not collected.