Adoption of new technologies in accounting firm

The Malaysian accounting industry is undergoing a significant transformation due to the adoption of Industry 4.0 technologies such as automation, artificial intelligence (AI), and cloud computing. The Malaysian Institute of Accountants (MIA), established under the Accountants Act 1967, plays a crucial role in regulating and overseeing the profession. The integration of digital technologies has improved efficiency and financial transparency, yet the transition presents several challenges. This study explores key barriers to technology adoption, including limited capital, a shortage of skilled professionals, and regulatory compliance issues. High initial investment costs and uncertain returns hinder small and medium-sized accounting firms from implementing new technologies. Furthermore, the lack of trained professionals proficient in data analytics, AI, and cloud-based solutions slows the adoption process, necessitating workforce upskilling. Compliance with evolving financial regulations, data protection laws, and cybersecurity requirements also adds complexity to technology integration. Thus, this study recommends strategic partnerships, flexible financing options, and targeted training programs to enhance accountants' digital competencies. Collaboration between accounting firms, regulatory bodies, and industry stakeholders is essential to establish clear guidelines and best practices for technology implementation. By adopting a proactive approach, Malaysian accounting firms can enhance their competitiveness, improve service delivery, and contribute to the country's economic growth in the digital era.