Digital Accounting Systems Adoption and Organizational Reporting Transformation

Abstract

This research investigates the transformative impact of digital accounting system adoption on
organizational reporting structures, moving beyond traditional efficiency metrics to examine
fundamental shifts in information architecture, decision-making processes, and stakeholder
communication paradigms. While prior literature predominantly focuses on cost-benefit analysis and implementation challenges of technologies like Enterprise Resource Planning (ERP)
systems, this study introduces a novel conceptual framework—the Tripartite Reporting Transformation Model (TRTM). This model posits that digital adoption catalyzes three concurrent,
interdependent transformations: epistemological (changing the nature of financial knowledge),
structural (reconfiguring data flows and reporting hierarchies), and teleological (redefining the
purpose and audience of reports). The methodology employs a longitudinal, multi-case study
design across four diverse industries (manufacturing, healthcare, non-profit, and professional
services), combining archival analysis of reporting artifacts pre- and post-digital adoption with
in-depth, semi-structured interviews with accounting personnel, operational managers, and
C-suite executives. Findings reveal that digital adoption does not merely automate existing
processes but often triggers a recursive re-imagination of what constitutes a ’report,’ leading to
the emergence of hybrid analytical narratives, real-time predictive dashboards, and externallyfacing integrated reports that blend financial and non-financial data. A significant and original
finding is the phenomenon of ’reporting drift,’ where the formal, accounting-centric reporting
system spawns informal, agile reporting sub-systems tailored for specific managerial needs,
creating a dual reporting ecology. The study concludes that the organizational reporting transformation is a sociotechnical evolution with profound implications for accounting professionalism, data governance, and the strategic role of the finance function. The contribution is a
reframing of digital accounting adoption from a technological upgrade to a catalyst for epistemological and organizational change.