Harnessing Artificial Intelligence in AccountiHarnessing Artificial Intelligence in Accounting: An Analytical Study on Its Role in Enhancing Efficiency, Transparency, and Decision-Making in Small Businessesng: An Analytical Study on Its Role in Enhan

The accelerating development of Artificial Intelligence (AI) has significantly transformed business operations, with accounting being one of the most affected disciplines. Small businesses, in particular, face persistent challenges related to limited resources, accounting inaccuracies, compliance risks, and inefficient decision-making processes. This analytical study aims to examine the role of AI in modernizing accounting practices within small businesses by synthesizing and critically analyzing recent academic literature. Using a qualitative analytical methodology based on an extensive review of peer-reviewed studies published between 2017 and 2025, this research investigates key AI applications in accounting, evaluates their benefits and limitations, and discusses their implications for financial governance and professional practice. The findings reveal that AI contributes substantially to improving accounting accuracy, operational efficiency, fraud detection, and strategic financial planning. However, challenges related to implementation costs, ethical concerns, and skills gaps remain significant. The study concludes by proposing practical recommendations to support effective, ethical, and sustainable AI adoption in small business accounting systems.