ABSTRACT
The advent of digital technology has brought about transformative changes across global industries, including accounting. Small and Medium-sized Enterprises (SMEs) are a vital component of the Nigerian economy, and the adoption of digital accounting practices within this sector has the potential to drive efficiency, transparency, and competitiveness. This research project aims to assess the extent of digital accounting tool adoption among Nigerian SMEs and the implications of this transformation on their operations, financial management, and economic contribution. Using a quantitative research approach, this study will analyze data from a diverse sample of Nigerian SMEs across various sectors. Quantitative surveys will provide insights into the current state of digitalization in accounting practices, elucidating the types of software, tools, and technologies in use. Questionnaires will be distributed to 100 participants, including students, accountants, and SME owners, to delve deeper into the implications of this digital transformation, both positive and negative, on SMEs and the broader economic landscape. The implications of this research project are significant. The findings are expected to reveal the challenges faced by SMEs in adopting digital accounting practices, such as cost, skills, and infrastructure limitations. Additionally, the study will investigate how digitalization influences financial reporting, tax compliance, access to finance, and business growth within the SME sector. The insights gained from this study will assist policy makers, financial institutions, and SME owners in developing strategies to harness the full potential of digital accounting practices in the Nigerian economy.
