Implementation of modern information systems for automating accounting processes in the public sector: The experience of Albania
Year: 2025
Type: article
Abstract: This study examined the potential impact of integrating modern accounting software in Albania’s public sector, focusing on financial automation, cost efficiency, and transparency. Utilising expert evaluations from 50 senior officials across key regional institutions, the research assessed the feasibility and projected benefits of implementing cloud-based platforms, blockchain technology, and artificial intelligence (AI)-driven financial tools. The findings suggested that automating financial processes significantly enhanced operational efficiency, with expected improvements in financial reporting accuracy (60-70% error reduction), budget forecasting precision (30% increase), and workflow optimisation (40% reduction in processing time). Beyond efficiency improvements, the study highlighted the broader benefits of automation, including increased fiscal transparency, minimised manual transaction errors, and enhanced interdepartmental collaboration. Experts also identified potential economic gains, projecting USD 1.2-1.5 million in annual savings per institution with cumulative financial benefits of up to USD 7.2 million over five years. Despite these advantages, the study also acknowledged key barriers to full-scale implementation, including cybersecurity risks, workforce resistance (63% of employees hesitant to transition from manual processes), and the need for technical training investments (estimated at USD 150,000-200,000 per institution). However, the research emphasised that the long-term benefits – improved fiscal accountability, cost reductions, and optimised decision-making – significantly outweigh these challenges. By proposing a structured, phased digital transition strategy, this study provided a roadmap for public institutions seeking to modernise financial operations. The findings contribute to the broader discourse on public sector digitalization, demonstrating how AI-driven analytics, blockchain security, and cloud-based accounting solutions can revolutionise financial governance, enhance transparency, and improve overall public sector efficiency in Albania
Authors: Eriola Hoxha, Anastas Angjeli, Florjan Bombaj
Language: English
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4410039069