Beyond the Numbers: the Impact of Accounting Profession Digitalisation on EU SMEs' Innovation

EasyChair Preprint no. 14050

Abstract

The 1990s were marked by the advent of the Internet, a revolutionary innovation in technology and the indispensable infrastructure of the digital economy. Digitalisation has permeated all fields of activity and has challenged the process of digital transformation, creating digitalised domains and sectors such as precision agriculture, the sharing economy, e-Business, the algorithmic economy and digital accounting. At the same time, digital transformation is the main driver of innovation in organisations. In turn, innovation shapes markets, supports digital transformation and the transition to a digital economy. The aim of this paper is to determine what role the digitalisation of the accounting profession plays in the EU SMEs' innovation and to answer the question: Can the digitalisation of the accounting profession affect SMEs' innovation? More specifically, this study determines the influence of Internet connection, use of ERP software, use of cloud computing services, exploitation of Office applications, running a financial-accounting software and having a policy on cyber security in financial-accounting activities on innovation in SMEs. This analysis was based on the econometric multiple linear regression model. The results of the study reflect the significant role that the digitalisation of the accounting profession plays in the innovation process of SMEs in the EU by 2021. The overall findings of the study refer to the fact that the digitalisation of the accounting profession is a driver of innovation in organisations, and that SMEs' innovation occurs during the adoption and implementation by accounting professionals of advanced computing technologies, implementation of blockchain and cloud technology, constant use of artificial intelligence to process and provide interpretation of economic transactions. This study represents an extension of the current literature on innovation in organisations focused on digitalisation of the accounting profession.

Keyphrases: accounting proffesion, Cloud Computing, Cyber Security, digital economy, digitalisation, ERP, Innovation, Internet, SMEs

@Booklet{EasyChair:14050,
  author = {Veronica Mita and Mariana Man},
  title = {Beyond the Numbers: the Impact of Accounting Profession Digitalisation on EU SMEs' Innovation},
  howpublished = {EasyChair Preprint no. 14050},

  year = {EasyChair, 2024}}