Digital Transformation of Accounting Systems and Challenges of Inventory Control in Georgia
Keywords:
Accounting, Digital Transformation, Inventory Control, ERP Systems, Artificial Intelligence (AI), Cloud Accounting, Blockchain, Financial TransparencyAbstract
The digital transformation of accounting systems has become one of the most significant determinants of financial information quality and business process efficiency in the modern economic environment. This issue is particularly relevant in the area of inventory control, where delayed information, incomplete system integration, and fragmented accounting models generate substantial operational and financial risks.
The purpose of this study is to evaluate the impact of the digital transformation of accounting systems on the effectiveness of inventory control in Georgia. The research is based on a mixed methodological approach that incorporates the analysis of international academic literature, the assessment of the functional capabilities of modern digital technologies — including ERP systems, Artificial Intelligence (AI), cloud-based platforms, and blockchain technologies — as well as the examination of practical challenges within the Georgian business sector.
The findings indicate that a significant number of Georgian enterprises still rely on partially integrated accounting systems, which complicates real-time inventory control, accurate cost determination, and the timely processing of financial information. The study demonstrates that the integrated implementation of digital technologies substantially reduces information asymmetry, improves the accuracy of financial data, and enhances operational transparency.
The article develops recommendations for the modernization of accounting systems, the integration of ERP platforms, the development of digital competencies, and the implementation of modern inventory control mechanisms. The results of the study may be utilized by business entities, regulatory bodies, and professional institutions to improve financial management systems and strengthen economic transparency.
The scientific contribution of the study lies in linking inventory control challenges with the level of digital integration of accounting systems in the context of the Georgian business environment.
References
Appelbaum, D., Kogan, A., Vasarhelyi, M., & Yan, Z. (2017). Impact of business analytics and enterprise systems on managerial accounting. International Journal of Accounting Information Systems, 25, 29–44;
Bhimani, A. (2020). Digital Data and Management Accounting: Transformation, Myth, or Reality? Management Accounting Research;
Christensen, C. M. (2016). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review Press;
Dai, J., & Vasarhelyi, M. A. (2017). Toward Blockchain-Based Accounting and Assurance. Journal of Information Systems, 31(3), 5–21;
Davenport, T. H. (2019). The AI Advantage: How to Put the Artificial Intelligence Revolution to Work. MIT Press;
Deloitte. (2023). The Future of the Finance Function in the Digital Era;
Gartner. (2024). Top Strategic Technology Trends for 2024;
ICAEW. (2023). Blockchain and the Future of Corporate Reporting;
Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2022). Intermediate Accounting. Wiley;
Kokina, J., & Davenport, T. H. (2017). The Emergence of Artificial Intelligence in Accounting and Auditing. Accounting Horizons, 31(3), 115–122;
Lacity, M. C. (2018). Addressing Myths about Blockchain Business Solutions. MIS Quarterly Executive;
Marr, B. (2022). Future Strategy: AI and the Automation of Professional Services;
McKinsey Global Institute. (2023). The Promise and Challenge of the Age of Artificial Intelligence;
Moffitt, K. C., Rozario, A. M., & Vasarhelyi, M. A. (2018). Robotic Process Automation for Auditing. Journal of Emerging Technologies in Accounting, 15(1), 1–10;
OECD. (2024). Tax Administration in the Digital Age;
Porter, M. E., & Heppelmann, J. E. (2014). How Smart, Connected Products Are Transforming Competition. Harvard Business Review;
PwC. (2024). Global Economic Crime and Fraud Survey: The Digital Evolution;
Rom, A., & Rohde, C. (2007). Management Accounting and Integrated Information Systems: A Literature Review. International Journal of Accounting Information Systems, 8(1), 40–68;
Schwab, K. (2017). The Fourth Industrial Revolution. World Economic Forum;
Sutton, S. G. (2006). Enterprise Systems and the Re-shaping of Accounting Services. International Journal of Accounting Information Systems;
World Economic Forum. (2023). The Future of Jobs Report;
Yermack, D. (2017). Corporate Governance and Blockchains. Review of Financial Studies;
Zuboff, S. (2019). The Age of Surveillance Capitalism. PublicAffairs;
საქართველოს ბუღალტრული აღრიცხვის, ანგარიშგებისა და აუდიტის ზედამხედველობის სამსახური (SARAS). (2024). წლიური ანგარიში;
საქართველოს ეროვნული ბანკი. (2024). ღია საბანკო სისტემის განვითარების ანგარიში;
საქართველოს ფინანსთა სამინისტრო. (2024). ფინანსური სექტორის ციფრულიზაციის სტრატეგიული მიმართულებები;
საქართველოს სტატისტიკის ეროვნული სამსახური. (2024). საწარმოთა საქმიანობის სტატისტიკური ანგარიში;
საქართველოს კონკურენციისა და მომხმარებლის დაცვის სააგენტო. (2024). ფასების მონიტორინგისა და ბაზრის შეფასების ანგარიში.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Business and Legislation
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
