Leveraging Digital Technology to Transform Accounting Function: Case Study of a SME

Abstract

Digital transformation is taking hold of the processes and systems in accounting at a rapid pace and in a drastic way. With its emphasis on data and analysis, accounting entity is well suited to reap the benefits digital technologies have to offer. With the rapid infusion of digital technologies in accounting entity, the accounting literature has been calling for more empirical studies to examine the way accounting function leverages digital technology to enhance its analytical capabilities so as to obtain deeper business insights. This paper conducts an empirical study to examine the process of a SME’s accounting function leveraging data analytics to enhance its financial analysis capability and revenue growth prediction in developing its future business strategy. In this study, we have used Lewin’s (1951) change theory as our analytical perspective. We have drawn on Food Co’s data analytics adoption experience by interviewing relevant internal stakeholders and reviewing secondary data extensively. Our analysis identified three stages of “unfreeze-change-refreeze” digital transformation process and several intervention actions that were instrumental in enacting the implementation of data analytics platform.