Financial Accounting in the Digital Age: Analyzing the Impact of Technology and Automation

This study explores the challenges faced by financial accountants in Nigeria in adopting digital tools amid the ongoing digital transformation of accounting practices. It investigates how cybersecurity threats, disparities in technical expertise, and inadequate infrastructure influence the adoption of technology and automation in financial accounting. A descriptive survey research design was employed, using a quantitative-dominant approach. Structured questionnaires were administered to 120 financial accountants and managers across Lagos, Ogun, and Abuja. Data were analyzed using regression analysis and independent samples t-tests, complemented by thematic analysis to support the quantitative results. The findings show that cybersecurity threats significantly hinder the adoption of digital tools. A notable disparity in technical expertise was observed between accountants in urban and rural areas, while poor infrastructure negatively impacts digital integration. The regression results indicated strong negative relationships between these variables and digital tool adoption. The study contributes to accounting literature by offering empirical, context-specific insights into Nigeria’s digital accounting landscape, especially through a rural-urban comparison of technical capacity. The study’s reliance on convenience sampling and a cross-sectional design limits the generalizability of its findings. Future research should adopt longitudinal approaches, probabilistic sampling, and advanced statistical methods such as structural equation modelling. The results highlight the need for improved cybersecurity frameworks, better infrastructure, and expanded digital training programs. These findings are particularly relevant to policymakers, accounting educators, and professional bodies. This study provides original empirical evidence from a developing economy and extends the Technology Acceptance Model (TAM) by incorporating contextual barriers to digital adoption.

Keywords: Financial Accounting, Digital Transformation, Cybersecurity Threats, Automation in Accounting, Technical Expertise.