Paper Details

Digital payments have transformed the financial ecosystem of small businesses. The rapid adoption of Unified Payments Interface (UPI), mobile wallets, internet banking, and card-based transactions has significantly influenced accounting practices, bookkeeping methods, financial transparency, and business efficiency. This research paper examines the impact of digital payments on accounting systems of small businesses, focusing on operational efficiency, accuracy of accounting records, taxation compliance, and financial decision-making. The study also highlights challenges such as cybersecurity risks, digital illiteracy, and infrastructure limitations. The paper concludes that digital payments positively influence accounting systems by improving transparency, reducing manual errors, and facilitating real-time financial reporting.

Keywords: Digital Payments, Accounting Systems, Small Businesses, UPI, Financial Technology, GST Compliance, Digital Accounting.