DIGITALIZATION OF ACCOUNTING IN SMALL ENTERPRISES

Abstract

Introduction. At the current stage of economic development, the digitalization of accounting in small enterprises represents a crucial aspect of the broader process of economic transformation. Digital technologies are reshaping traditional accounting practices by enabling automation of routine operations, creating integrated digital environments, and providing real-time analytical support for managerial decision-making. The rapid evolution of cloud services, business intelligence systems (BI), artificial intelligence tools, and their integration with banking and governmental platforms highlight both opportunities and challenges for accounting in resource-constrained small businesses. Purpose. The purpose of the article is to examine the process of accounting digitalization in small enterprises, assess the impact of modern digital technologies on the efficiency and accuracy of accounting processes, and identify practical approaches to implementing digital solutions while managing associated risks. Methods. The research applies analytical, comparative, and synthesis methods. The analytical method is used to evaluate the theoretical and practical foundations of accounting digitalization; the comparative method contrasts approaches to digitalization in small and large enterprises; the synthesis method supports the formulation of conclusions and practical recommendations for enhancing digital accounting practices. Results. The study demonstrates that accounting digitalization in small enterprises has a dual dimension: automation of accounting processes and the creation of a comprehensive digital environment. Digital tools improve operational efficiency, reduce errors, enhance data accuracy, facilitate interaction with counterparties and regulatory authorities, and expand access to analytical capabilities. Advanced technologies, including artificial intelligence, blockchain, and Big Data, further strengthen managerial decision-making and strategic planning. At the same time, digitalization carries risks such as dependence on software and cloud platforms, cyber threats, technical failures, and insufficient digital competencies among personnel. The research emphasizes that small enterprises benefit primarily from tactical effects – streamlined procedures, automation of routine tasks, and efficient use of external digital services – while strategic integration and complex analytics are more relevant for large enterprises. Conclusion. The digitalization of accounting in small enterprises emerges not only as a technological innovation but as a strategic direction for business development, enhancing transparency, efficiency, and competitiveness. Effective implementation requires a phased approach, the formation of a culture of information security, and continuous improvement of digital competencies among personnel. The study underlines the necessity of integrating digital accounting practices into small enterprise management to strengthen financial discipline and ensure adaptability within the evolving digital economy.