DIGITAL TRANSFORMATION OF ACCOUNTING PRACTICES IN SMALL SERVICE BUSINESSES IN SAMARKAND: ADOPTION LEVELS, SKILL GAPS, AND POLICY NEEDS

Abstract

This study investigates the digital transformation of accounting practices among small service enterprises in Samarkand, Uzbekistan. While national digitalization policies encourage the adoption of modern financial tools, the actual use of digital accounting systems at the SME level remains underexamined. A survey of 16 small businesses (cafés, beauty salons, photo studios, and IT service providers) was conducted in May 2025. Results show widespread use of basic digital tools such as mobile payment records (94%) and Excel-based bookkeeping (88%), but limited adoption of dedicated accounting software (only 19%) or cloud-based platforms (13%). Key barriers include lack of accounting-specific digital skills (69%), cost concerns (56%), and reliance on informal financial tracking (44%). The findings suggest that digital transformation in accounting is still in its early stages among Samarkand’s SMEs and requires targeted interventions—particularly training in digital accounting literacy and access to affordable, user-friendly software. This research fills a gap in the literature on micro-level financial digitization in Central Asia and offers actionable recommendations for local policymakers and educational institutions.