The Impact of Digital Accounting Systems on Financial Performance in the Banking Sector

The digital revolution has reshaped financial management, with digital accounting systems (DAS) emerging as game-changers for enhancing organizational performance. This study examines the transformative impact of DAS on key financial performance indicators—cash flow (CF), profitability (P), and return on investment (ROI)—within the banking sector, with a focus on Yemeni banks. Using a quantitative research approach, the study analyzes how system quality, information quality, service quality, perceived usefulness, and DAS usage influence financial outcomes. The findings reveal a strong positive correlation between the adoption of DAS and improvements in CF, P, and ROI, underscoring the role of digital tools in enhancing operational efficiency, accuracy, and strategic decision-making. This research provides financial practitioners, policymakers, and system developers with valuable insights by offering evidence-based strategies to optimize performance and design sector-specific digital solutions that support more effective financial management in an increasingly digitalized environment.