The Future of Accounting in Malaysia: Navigating Digital Disruptions and Innovations for Professional Growth

Digital Disruption, driven by Digital Transformation, is reshaping the value proposition and business models across various sectors, including accounting. The impact of this disruption has led to debates on whether it represents a threat or an opportunity, but there is limited academic research on the topic within the accounting field. This thesis investigates how Digital Transformation, especially in accounting software, has influenced the profession through the lens of Disruptive Innovation Theory, focusing on three research perspectives. This thesis employs a comprehensive mixed-methods approach with a strong qualitative focus. The study includes a comprehensive literature review on how Digital Transformation affects the roles of accounting professionals and their professionalism, revealing a shift toward greater IT knowledge and soft skills. It also explores how professionals are adapting to digital changes and examines a Malaysian accounting software company’s use of AI technology, considering its potential impact on SME accounting services. The findings indicate that accounting professionals possess unique advantages, such as social capital and the ability to build trust through client interactions, alongside creative and integrated thinking that is difficult for AI to replicate. The research concludes that while digital disruption poses challenges, the future extent of this disruption will depend on professionals’ ability to think critically, focus on strategy, and adapt to client needs.