The Impact of Digital Transformation on Financial Performance: A Quantitative Study of Accounting Practices in UAE-Based SMEs

Abstract

The digital transformation of business processes has gained significant momentum, especially within the accounting sector of Small and Medium-sized Enterprises (SMEs). This research examines the effect of digital transformation on the UAE-based SMEs' financial performance based on quantitative data to develop some relationships between financial measures and technology use. Through a systematic survey of 75 UAE SMEs in major emirates, and pre and post-digital adoption financial data, this study demystifies the extent to which digital accounting software boosts performance, simplifies procedures and aids decision-making at a strategic level. Findings indicate statistically significant relationship between digital accounting utilization and increased profitability, cost-effectiveness and transparency.