Effect of Technological Innovations on the Accounting Practices Efficiency in Kenya

Abstract

The landscape of accounting procedures in businesses is undergoing a profound transformation due to technological innovation. Technology has emerged as a catalyst for enhancing financial management through increased efficiency and accuracy. This comprehensive review explores the multifaceted impact of technological innovations on accounting practices, focusing on three key variables: the adoption of accounting software, inventory management systems, and the integration of online payment systems. It scrutinizes the efficiency of accounting practices through the lenses of time efficiency and error rates, dissecting the interplay between these variables. A systematic evaluation of the empirical literature reveals the transformative influence of technology on modern accounting procedures, providing critical insights into best practices and areas for future research. The empirical literature provides compelling evidence of the transformative power of technology-driven innovations, enhancing data accuracy and real-time insights into financial metrics. However, research gaps persist, such as the integration of accounting software with online payment systems, the impact on compliance and reporting requirements, and the unique challenges faced by small businesses. This review highlights the need for balanced exploration of both the advantages and potential challenges of technological innovation in accounting practices. By addressing these research gaps and fostering a nuanced understanding, organizations can make informed decisions and leverage technology effectively to enhance accounting efficiency.