Abstract:

This study examined the effect of digital accounting practices on financial performance of deposit money banks (DMBs) in Nigeria. Specifically, the study investigated the impacts of data analytics, automated bookkeeping, machine learning, cloud-based accounting systems, and blockchain technology on return on assets of DMBs in Nigeria. A survey design was employed. A stratified sampling method was adopted to select 7 deposit money banks with international authorization. A self-administered questionnaire was used in collecting data from a sample size of 396 employees that was determined using the Taro Yamane formula. The data was analysed using both descriptive and linear regression methods using SPSS. The results of the analysis showed that data analytics, automated bookkeeping, machine learning, cloud-based accounting system and blockchain technology have positive and statistically significant influence on financial performance (ROA). In all, it was concluded that digital accounting practices significantly influenced the financial performance of licensed deposit money banks in Nigeria. The study recommended, among others, that DMBs should enhance their data analytics capabilities to further improve financial performance.