Real Time Financial Reporting: A Systematic Review of Challenges and Advantages
TL;DR
The review reveals that RTFR enhances organizational efficiency, transparency, corporate governance, and strategic decision-making by providing timely and accurate financial information, however, the adoption of RTFR is constrained by significant challenges.
Abstract
The rapid digital transformation of business processes has significantly altered the landscape of financial reporting, giving rise to real-time financial reporting (RTFR) as a transformative innovation in accounting practice. Unlike traditional periodic reporting systems, RTFR facilitates continuous access to financial information through the integration of cloud computing, automation, artificial intelligence, and enterprise resource planning systems. This study systematically reviews extant literature on the advantages and challenges associated with RTFR adoption in contemporary organizations. Drawing on Diffusion of Innovation Theory as the underpinning theoretical framework, the study adopts a qualitative systematic literature review approach to synthesize findings from peer-reviewed journal articles, industry reports, and regulatory publications published between 2018 and 2025. The review reveals that RTFR enhances organizational efficiency, transparency, corporate governance, and strategic decision-making by providing timely and accurate financial information. However, the adoption of RTFR is constrained by significant challenges, including cybersecurity risks, regulatory and compliance complexities, organizational readiness deficiencies, and substantial implementation costs, particularly among small and medium-sized enterprises (SMEs). The findings further indicate that contextual factors such as firm size, industry characteristics, and geographical location influence adoption patterns and outcomes. The study contributes to accounting literature by integrating diverse perspectives on RTFR adoption, identifying critical knowledge gaps, and proposing directions for future research. It is recommended that organizations adopt phased implementation strategies, strengthen cybersecurity infrastructure, and invest in employee training, while policymakers should modernize regulatory frameworks to support continuous financial disclosure.