Guest editorial: Embracing a new era: digital transformation in accounting and finance Free

Digital transformation has become a key driver of progress in the accounting and finance fields, shifting operations from traditional methods to tech-based processes. This special issue explores how new technologies impact financial practices, governance and engagement with stakeholders, demonstrating how digital tools are setting new standards for transparency, efficiency and competitiveness. Technologies like Artificial Intelligence (AI), Machine Learning (ML), FinTech innovations and Blockchain are not only streamlining operations but also strengthening transparency and governance (Alkhwaldi et al., 2023; Al-Araj et al., 2022). For example, FinTech disclosures have proven valuable in enhancing corporate governance frameworks, especially in both traditional and Islamic banks (Shehadeh et al., 2024a). By enabling clearer views into financial operations, FinTech is reshaping interactions with stakeholders and supporting accountability.

Moreover, the rise of cashless payment systems and digital financial literacy has fostered greater financial inclusion, particularly in emerging markets. Studies indicate that financial literacy initiatives, coupled with cashless payment adoption, can transform consumer behavior, making financial services more accessible and enhancing economic participation (Shehadeh et al., 2024b). This shift toward digital finance underscores the role of technology in bridging economic gaps and supporting inclusive growth.

The rapid adoption of Industry 4.0 technologies, including automation and interconnected systems, has further expanded the scope of corporate narrative reporting. In response to global disruptions like the COVID-19 pandemic, companies have increasingly integrated these technologies to enhance resilience and provide stakeholders with valuable insights into their adaptability (Abed et al., 2022; Shehadeh et al., 2024c). Enhanced reporting on Industry 4.0 adoption thus reflects a commitment to transparency and an agile response to evolving challenges.

Digital transformation also extends to tax management. The emergence of digital tax platforms offers efficient solutions for compliance and administration, though their adoption depends on factors like regulatory support and digital proficiency. This highlights the importance of well-defined strategies to encourage the use of these platforms in modern tax systems (Abu-Silake et al., 2024).

Beyond operational improvements, digital transformation aligns closely with sustainability objectives, creating pathways for companies to balance profitability with social responsibility. Digital tools empower organizations to implement sustainable practices, giving them a competitive edge and enabling them to meet market demands for ethical business practices (Shehadeh, 2024d). Additionally, research suggests that gender dynamics within firms can influence the outcomes of digital initiatives, highlighting the complex interplay between organizational characteristics and digital transformation (Shehadeh et al., 2024e).

This special issue provides insights into these themes, showcasing research and case studies that illustrate the significant impact of digital technologies on the accounting and finance sectors. Through these contributions, we aim to enrich the understanding of digital transformation’s impact on accounting and finance and to encourage further research and practical insights that will guide the industry toward a digitally empowered future.

As digital transformation accelerates globally, it is reshaping accounting and finance in significant ways. This special issue, “Embracing a New Era: Digital Transformation in Accounting and Finance,” presents 19 pioneering studies from countries like Egypt, Jordan, Saudi Arabia, Tunisia, Malaysia, the UAE, Vietnam, Ghana and India. Each study examines how innovations in Big Data, FinTech, blockchain and artificial intelligence are revolutionizing financial practices, audit quality, governance and inclusion.

Through a diverse range of regional insights – from the Middle East and North Africa to Southeast Asia and West Africa – this collection captures the unique challenges and groundbreaking solutions being developed across different regulatory and cultural landscapes. Together, these studies showcase a global commitment to building a more resilient, transparent and inclusive financial future, where technological advancements align with the specific needs of each region.

Big Data and analytics (BD&A) have become critical for enhancing audit quality and financial reporting, providing data-driven insights that enhance accuracy and reliability. In their study, Abdelwahed et al. (2025) assess BD&A’s impact on auditing practices in Egypt, identifying marked improvements in the audit process and auditor capabilities, though audit fees remain unaffected. This study underscores BD&A’s transformative role in improving audit quality, especially in developing markets.

Complementing this, Aboelfotoh et al. (2025) use a bibliometric analysis to chart BD&A’s role in financial reporting quality (FRQ). Their findings identify key areas where BD&A, using tools like data mining and machine learning, effectively supports fraud detection, earnings management and FRQ assessment. This research highlights the increasing importance of advanced analytics in enhancing corporate transparency and governance, as well as in providing predictive fraud detection models.

FinTech continues to reshape financial accessibility and customer satisfaction, especially in emerging markets. Abed and Alkadi (2025) examine factors influencing continuous use and satisfaction with FinTech payment applications in Saudi Arabia, finding that social influence, price value and habit are key to user engagement. They emphasize that system quality, service quality and information quality are essential for customer satisfaction, reinforcing the value of user-centered FinTech design.

Kayed et al. (2025) provide insights from Jordan, where FinTech integration within banks has positively impacted profitability and reduced risk, although it has had no significant effect on stock returns. Their findings suggest that Jordanian banks benefit from regulatory frameworks supportive of FinTech innovation, enhancing stability in the financial system.

Highlighting the importance of regulatory environments, Bani Atta (2025) explores how competitive and customer pressures drive FinTech adoption in Jordanian banks. The study underscores the need for top management support to integrate FinTech solutions effectively and advocates for regulatory balance to encourage both innovation and risk management. Addressing financial inclusion among youth in the MENA region, Berguiga and Adair (2025) analyze digital financial services’ impact on account holding and service usage among young people in Egypt, Jordan and Tunisia. They find that digital tools have broadened access, especially for young entrepreneurs, with the COVID-19 pandemic emphasizing digital platforms’ role in fostering inclusivity.

Finally, Hiew et al. (2025) explore the relationship between financial inclusion, FinTech adoption and societal sustainability in Malaysia. Their study indicates that nonmonetary benefits and regulatory risks play a significant role in FinTech adoption, with financial inclusion acting as a mediator that connects FinTech growth to societal benefits. They recommend enhancing digital literacy and fostering regulatory collaboration to maximize FinTech’s potential for sustainable social outcomes.

Blockchain technology continues to play an essential role in the digital transformation of the accounting and finance sectors, providing enhanced security, transparency and trust in various financial operations. This section highlights studies that examine blockchain’s applications in financial services, auditing, taxation and financial reporting.

In “Deciphering the factors shaping blockchain technology adoption in the BFSI industry,” Dhingra and Gupta (2025) analyze the factors driving blockchain adoption in the banking, financial services and insurance (BFSI) sector. Their study, utilizing the TISM-MICMAC approach, identifies government support as the most crucial foundational factor, followed by social influence and security. This research offers policymakers a strategic roadmap to prioritize resources, promoting blockchain as a driving force for secure digital transformation within the BFSI industry. Elmaasrawy et al. (2025) explore blockchain’s impact on auditing in “Effect of audit client’s use of blockchain technology on auditing accounting estimates: evidence from the Middle East.” Their findings reveal that blockchain adoption by clients enhances the reliability of auditing accounting estimates by improving the collection of audit evidence and increasing inherent and control risks. This study highlights the need for updating auditing standards to align with blockchain technology’s capabilities, thereby enhancing the precision of audit processes.

In the context of taxation, Larikaman et al. (2025) examine blockchain’s potential within Iran’s tax system in “The impact of applying blockchain technology in the tax system: opportunities and challenges.” The study demonstrates that blockchain positively impacts tax administration, specifically in value-added tax, shipping goods tax and income tax, while also noting regulatory challenges. This research underscores blockchain’s potential to streamline tax systems while calling for regulatory frameworks to address the associated risks. Finally, Rawashdeh (2025) addresses blockchain’s role in building trust in financial reporting in “Bridging the trust gap in financial reporting: the impact of blockchain technology and smart contracts.” His study demonstrates that blockchain significantly enhances trust in financial reporting, with smart contracts mediating this relationship. The findings support blockchain’s adoption in accounting practices to mitigate financial malpractices, underscoring its transformative potential for transparency and accountability in financial reporting.

The integration of artificial intelligence (AI) and digital tools is revolutionizing financial institutions, offering enhanced service delivery, operational efficiency and regulatory compliance. In "Digital transformation and integration of artificial intelligence in financial institutions,” Mohsen et al. (2025) examine the strategic impact of AI subfields, including machine learning, process automation, predictive analytics and chatbots. Their findings highlight machine learning and chatbots as highly promising tools that significantly enhance financial services and customer experiences. While predictive analytics and process automation remain useful, they may require workflows incorporating human oversight. The study recommends phased AI adoption, allowing institutions to assess the transformative impact and align internal resources effectively.

Al Shbail et al. (2025) focus on remote auditing in "Enhancing audit quality in non-Big 4 firms: the role of remote auditing and audit staff capabilities.” Conducted within Jordanian non-Big 4 audit firms, their study finds that remote auditing improves audit quality, particularly when supported by auditors’ technical knowledge, communication skills and professional judgment. This research emphasizes the importance of investing in remote auditing skills, positioning it as a viable alternative for smaller firms aiming to enhance audit quality in a post-pandemic era.

In “Antecedents and consequences of automated VAT solution adoption in Gulf Cooperation countries,” Al-Hiyari et al. (2025) analyze factors influencing the adoption of Automated VAT Solutions (AVS) among SMEs in the UAE. The study demonstrates that technological and organizational factors, such as IT competency and management support, are crucial for AVS adoption, which ultimately reduces VAT compliance costs. This research underscores the need for regulatory support to promote AVS adoption, positioning it as an effective tool for reducing operational costs and enhancing tax compliance efficiency among SMEs.

As digital transformation redefines accounting and finance, its impact extends beyond traditional practices, touching on educational frameworks, the operational dynamics of SMEs and the evolution of customer engagement.

Amin et al. (2025) explore the modern landscape of accounting education in “A bibliometric analysis of accounting education literature in the digital era,” revealing how emerging technologies are reshaping the field. Their study highlights three essential themes: the impact of technological advancements on the accounting profession, the evolving skills required for modern accountants and the integration of digital tools within educational curricula. With the USA and Australia leading in research output, the study underscores the global shift toward tech-centric accounting education, reflecting a commitment to preparing future accountants for the demands of a digital economy.

In the SME sector, Nguyen et al. (2025) explore into the transformative role of digitalization within Vietnamese enterprises in “Digital transformation in accounting of Vietnamese small and medium enterprises.” They find that organizational mindfulness, strategic alignment and strong top management support are central to successful digital transformation efforts, which, in turn, enhance the quality of accounting information. This research emphasizes the importance of digital investment and training within SMEs, positioning them to leverage technology effectively in a competitive market. Turning to the critical issue of cybersecurity governance, Opuni-Frimpong et al. (2025) examine Ghana’s mandate for Cyber and Information Security Governance Committees (CISGC) in “Governance’s role in bank performance: cybersecurity committee assessment.” Their findings indicate that cybersecurity expertise within these committees positively impacts bank returns on assets, though other performance indicators remain unaffected. This insight highlights the growing need for specialized cybersecurity measures as banks adopt increasingly digital and interconnected systems.

In “Factors influencing meta-banking adoption: an empirical study,” Yaseen et al. (2025) investigate what drives customer adoption of meta-banking, or metaverse banking. Using the UTAUT model, they find that performance expectations, ease of use and hedonic motivation foster perceived value, a key factor in adoption intention. However, technostress, or the stress associated with using new technologies, serves as a barrier, underscoring the importance of user-friendly interfaces and value-driven design to enhance customer engagement in digital banking. Finally, Bhatnagr and Rajesh (2025) offer insights into online customer experience within Indian digital banks through “Online customer experience in Indian digital banks impacting continuous intention usage.” They identify that factors like e-service quality, perceived enjoyment and e-convenience shape a positive online experience, driving both e-loyalty and e-trust. These elements are essential for customer retention, particularly for Generation Y and Z users, as digital banking becomes a core aspect of financial engagement in India.

Each of these studies illustrates how digital transformation is driving innovation across education, small businesses and customer relations, weaving a more interconnected and efficient financial fabric.

Together, these nineteen studies provide a comprehensive view of how digital transformation is reshaping accounting and finance. By addressing crucial areas such as audit quality, financial inclusivity, cybersecurity and transparency in reporting, they highlight the promise of digital solutions in creating a more resilient, efficient and inclusive financial landscape. The advancements in AI, blockchain and FinTech are not only enhancing operational efficiency but also setting new standards for governance and transparency. As the industry continues to advance, these studies underscore the importance of balancing innovation with regulatory accountability, suggesting that future research should focus on the regulatory, ethical and social implications of these technologies to fully realize their potential in a digitally empowered finance sector.