Impact of Accounting Software Adoption on Financial Reporting Quality

In the evolving financial landscape, the adoption of accounting software has become instrumental in enhancing the quality of financial reporting. This study investigates the impact of accounting software adoption on the accuracy, timeliness, and compliance of financial reporting among listed companies in Nigeria. As technology increasingly drives transparency and accountability, the study evaluates how features such as audit trail functionality, real-time processing, IFRS compliance, and user interface quality influence reporting outcomes. A cross-sectional survey design was employed, and primary data were collected from 184 financial reporting professionals using a structured questionnaire. Descriptive statistics, Pearson correlation, and linear regression analyses were conducted using SPSS. Face and content validity were ensured through expert reviews from two senior lecturers and a chartered accountant. Reliability was confirmed through Cronbach’s alpha, with all constructs scoring above 0.91. The regression analysis revealed significant positive relationships between accounting software adoption and three core reporting quality indicators: accuracy (R² = 0.165, F = 36.074, p < 0.001), timeliness (R² = 0.151, F = 32.254, p < 0.001), and compliance (R² = 0.168, F = 36.770, p < 0.001). Features such as audit trails, real-time processing, and IFRS-compliant design contributed most to these improvements. The study concludes that accounting software adoption significantly enhances the quality of financial reporting in terms of accuracy, timeliness, and regulatory compliance. It recommends that firms invest in IFRS-compliant and user-friendly accounting systems, provide regular user training, upgrade digital infrastructure, and align internal policies with reporting regulations to optimize software benefits. These findings have key implications for corporate governance, audit quality, and financial transparency in Nigeria.