DIGITALIZATION OF ACCOUNTING AND ANALYTICAL SUPPORT FOR DEBT SETTLEMENT MANAGEMENT IN SMALL ENTERPRISES

Abstract

Introduction. The article addresses the growing importance of digitalization in managing debt settlements within small businesses. In a rapidly evolving global economy, traditional accounting methods no longer ensure accuracy, timeliness, and transparency of financial flows. Digital solutions, including blockchain, artificial intelligence, and ERP systems, are reshaping accounting and analytical processes, offering new tools for monitoring debt and mitigating payment risks. Purpose. The main objective of the research is to analyze the impact of digital technologies on accounting and analytical support for debt management in small enterprises. The study seeks to identify the benefits and risks of implementing innovative tools and to propose recommendations for optimizing their use. Methods. The research is based on a comparative analysis of modern information systems, case studies of Ukrainian small enterprises, and theoretical generalization of approaches to digital transformation. The methods of systematization, modeling, and risk analysis were employed to assess the effectiveness of digital instruments in debt management. Results. Findings demonstrate that digitalization significantly improves the efficiency of debt settlements. Blockchain technologies ensure immutability and transparency of transactions, artificial intelligence enhances predictive analytics by identifying potential defaults, and ERP systems streamline data integration. Empirical evidence from Ukrainian businesses shows a reduction of overdue receivables by up to 35%, faster payment processing, and improved accuracy of financial forecasting. At the same time, challenges remain, including high costs of software implementation, data security threats, and the demand for specialists with advanced digital competencies. Conclusion. Digitalization of accounting and analytical processes is a critical factor for ensuring the financial sustainability of small enterprises. By integrating innovative technologies, businesses not only reduce operational risks but also strengthen competitiveness and resilience in an unpredictable economic environment. Therefore, digital transformation should be viewed as a long-term strategic priority for small business development.