DIGITAL TRANSFORMATION IN ACCOUNTING: THE EFFICIENCY OF BLOCKCHAIN AND AUTOMATED ACCOUNTING SYSTEMS

Abstract

Fast changes in how the world uses digital tools have pushed accounting into deep change. Not just updating records, but reshaping them lies at the heart of this shift. Blockchain and automated systems now play key roles when companies go digital. Accuracy in financial reports improves when these technologies step in. Costs drop because fewer manual steps are needed across processes. Audits become clearer since every transaction leaves a permanent trace. Fraud finds less room where access is tightly controlled and logs never disappear. A method comparing results over five years helps measure what actually happens. Data from 2020 through 2025 shows patterns across different regions. Examples come from the U.S., EU nations, Estonia, Singapore, China, plus growing markets like Uzbekistan. In practice, blockchain brings mistakes down to almost nothing - less than one-tenth of a percent. Time spent preparing audits shrinks sharply, sometimes nearly half. Financial information flows without delay thanks to shared record networks. At the same time, more small and mid-sized firms turn to ERP software. Only about two out of ten used it five years ago. By 2025, that could rise to six out of ten. A closer look reveals tough roadblocks - pricey setup fees, shifting rules, shaky legal frameworks, alongside growing fears over data breaches - not just listing them but tying fixes directly to real moves by leaders shaping digital finance shifts. What stands out most is how poorer nations need a mix of old and new systems to make the change work.