Challenges and Opportunities in Accounting for the Sharing Economy

Abstract

The sharing economy has disrupted traditional business practices by facilitating peer-to-peer transactions through digital platforms. This transformation has created significant challenges in accounting practices and standards, particularly in areas such as revenue recognition, internal control, and financial reporting. Nevertheless, it also offers opportunities in the form of technological innovation in accounting and the development of new standards. This study aims to examine these challenges and opportunities using a literature review approach based on international scholarly publications. The findings indicate a pressing need to reform the accounting framework to ensure it remains adaptive to the dynamics of the sharing economy. Such reforms should consider the unique characteristics of digital transactions, decentralized asset use, and evolving regulatory demands. By analyzing recent academic contributions, this study provides insight into how accounting professionals and policymakers can respond to the complexities introduced by digital platforms, ensuring greater transparency, accountability, and relevance in financial reporting. The study underscores the importance of integrating technological tools and flexible standards into accounting systems to align with the rapidly changing business environment.