ASSESSING THE IMPACT OF DIGITAL ACCOUNTING SYSTEMS ON THE FINANCIAL REPORTING QUALITY OF SMES IN GOMBE METROPOLIS

Abstract

This study investigates the impact of digital accounting systems on the financial reporting quality of Small and Medium-sized Enterprises (SMEs) in Gombe Metropolis, Nigeria. Recognizing the critical role of accurate, timely, and transparent financial reports for SME growth and sustainability, the research adopts a cross-sectional survey design, guided by Dillman’s Tailored Design Method (TDM). Data were collected from 150 SMEs using structured questionnaires, with 136 valid responses analyzed using descriptive statistics and chi-square tests. The findings reveal that 82% of SMEs have adopted digital accounting tools, primarily QuickBooks, Microsoft Excel, and Sage. Results indicate significant improvements in financial reporting accuracy (Mean = 4.3), timeliness (Mean = 4.2), and transparency (Mean = 4.1), with strong internal consistency across these dimensions. However, challenges such as technical skills gaps, high software costs, and unreliable infrastructure persist. The study concludes that while digital accounting significantly enhances financial reporting quality, its full potential can only be realized through targeted interventions including capacity building, subsidized access to software, and improved IT infrastructure.