Public Sector Accounting in a Digital Environment: Systemic Challenges

Abstract

Abstract The digitalization of accounting is a key pillar of public sector modernization. There is certainly a greater demand for transparency, efficiency and evidence-based decision-making. Digital technology has the potential to improve both fiscal and accounting processes in the public sector; however, it faces considerable obstacles to the application of the technology, such as organizational, technological and regulatory constraints. Although previous work has focused on e-government and digital governance projects, the specific issues related to the digitalization of accounting in the public sector have not been studied in detail. This paper examines the main challenges and limitations associated with the digitalization of accounting in public institutions. The study adopts a mixed-methods approach, combining a systematic literature review conducted in accordance with the PRISMA-P protocol with bibliometric analysis. The research is based on a structured review of academic literature and content analysis of institutional documents and regulatory frameworks, complemented by keyword co-occurrence mapping using VOSviewer to identify the main research directions within the field. The results of this study indicate that resistance to organizational change, insufficient digital skills of staff, data security vulnerabilities, limited interoperability of information systems and restrictive legislative frameworks represent the most significant obstacles to effective digitalization in the public sector. These challenges reduce the expected benefits of digital accounting and delay the modernization of public financial management processes. By integrating technological, organizational, and governance-related perspectives, the paper proposes a systemic interpretation of public sector accounting digitalization and highlights the institutional conditions necessary for strengthening digital accounting practices in public administration.