Enhancing Financial Reporting Efficiency through Accounting Information Technology

Abstract

The rapid development of digital technology has significantly transformed financial management, making the adoption of Accounting Information Technology (AIT) essential for organizations seeking efficiency and accuracy in reporting. This study aims to examine the role of AIT, including Accounting Information Systems (AIS), cloud-based platforms, and AI-based analytics, in enhancing financial reporting efficiency. Employing a qualitative approach through a literature review, the research analyzes secondary data from academic journals, textbooks, research reports, and credible institutional publications. Findings indicate that AIT accelerates report preparation, improves accuracy, reduces operational costs, and provides real-time access to data for strategic decision-making. It also supports compliance with accounting regulations and enables early identification of financial risks. However, successful implementation requires addressing challenges such as high initial costs, limited digital literacy, and data security risks, emphasizing the importance of organizational readiness and training. The study contributes theoretically by integrating insights on AIT’s efficiency benefits and practically by offering guidance for organizations, especially MSMEs, to optimize digital accounting systems and strengthen financial governance.