Mamarajabova Shahnoza

Denov Institute of Entrepreneurship and Pedagogy,

2nd-year student, Faculty of Accounting

Digital Transformation in Production Accounting

Annotation.

This article analyzes the theoretical and practical aspects of conducting production accounting using digital technologies such as ERP systems, electronic invoices, cloud services, blockchain, and artificial intelligence. The thesis explores the double-entry principle, financial and management accounting, and the impact of digital transformation on enterprise efficiency. Furthermore, the advantages and emerging requirements of implementing digital accounting in Uzbekistan are examined through the examples of “1C”, electronic invoicing, the State Tax Committee’s digital systems, and UzAuto Motors.

Keywords: digital technologies, accounting, production process, double-entry, blockchain, artificial intelligence.

Introduction

Accounting based on digital technologies refers to the process of collecting, processing, and analyzing information about a company’s financial condition, expenses, revenues, and cash flows using automated information systems. With digital accounting systems, financial statements such as the balance sheet, income statement, cash flow statement, and statement of changes in equity are generated automatically in real time. This enables rapid analysis of assets, liabilities, and financial stability.

Implementing digital technologies ensures transparency and accuracy based on International Financial Reporting Standards (IFRS). As a result, analyzing production costs, determining product cost, and making managerial decisions become more efficient. Modern accounting systems (such as 1C, SAP, Oracle, and ERP) integrate financial and managerial accounting, allowing manufacturing enterprises not only to record costs but also to perform planning, budgeting, and control functions effectively.

Production (cost) accounting involves collecting information on expenses incurred during enterprise operations, allocating selected costs to products, services, and other cost objects, and evaluating the efficiency of cost utilization. In addition to cost calculation methods, the following cost accounting techniques are applied by management to control expenses and make key business decisions. These techniques are not independent methods of cost calculation but can be effectively combined with any of the traditional methods.

Table 1. Cost Accounting Methods and Techniques

Marginal (variable) costing:

This method allocates only variable costs (e.g., materials, labor, direct costs) incurred in the production process, excluding fixed costs such as rent and depreciation, as they may distort results. It is useful in industries with fluctuating production volumes.

Direct costing:

This method assigns all directly related costs to a product or process, while indirect costs are covered through profits. Unlike marginal costing, some fixed costs may also be treated as direct costs under specific conditions.

Full (absorption) costing:

This approach includes all variable and fixed costs in the production process. In other words, the total product or service cost covers all expenses—wages, raw materials, rent, and others.

Uniform costing:

This method applies standardized cost calculation rules across several enterprises or organizations. Standardization includes criteria such as cost types, depreciation, taxation, and cost allocation. It facilitates comparison between enterprises, pricing policy formulation, and fair evaluation.

Main Part

In the digital economy, accounting is recognized not only as a component of financial management but also as an important factor in economic development. Modern digital accounting systems strengthen financial stability and provide reliable information necessary for strategic decision-making.

Digital technologies play a crucial role in improving accounting processes and enhancing production efficiency. Practice shows that digitalization helps regulate economic processes, strengthen control, and ensure the accuracy of financial information.

In Uzbekistan, the introduction of electronic invoicing for small and medium-sized enterprises has significantly simplified production accounting. For example, small shops and service providers can now prepare reports quickly, accurately, and without errors using automated programs such as 1C. These systems reduce human errors and save time and resources.

Large manufacturing corporations, including UzAuto Motors, have digitized their accounting systems based on IFRS standards, aligning production costs and financial results with global requirements. As a result, the company established reliable partnerships with foreign investors and strengthened its position in international financial markets.

At the state level, the implementation of digital accounting systems contributes to better economic governance. In particular, the State Tax Committee’s digital information systems allow real-time monitoring of enterprises’ financial activities, control of budget revenues, and reduction of illegal operations.

Modern ERP systems (SAP, 1C, Oracle) are widely used as leading tools for automating production accounting. These systems integrate enterprise income, expenses, and budget status on a single platform, simplifying financial analysis and control. The widespread use of 1C software in Uzbekistan has made accounting processes more transparent and efficient in manufacturing enterprises.

Moreover, blockchain technology plays a significant role in enhancing security in accounting. International production transactions and payments processed via blockchain are faster and less vulnerable to fraud. Artificial intelligence (AI) serves as a powerful tool for analyzing financial reports, optimizing costs, and improving production efficiency.

In general, the application of digital technologies to production accounting ensures speed, accuracy, and security, taking financial management to a new level.

Conclusion

The introduction of digital technologies in production accounting improves quality, reliability, and timeliness of management information, thus increasing enterprise efficiency. Simultaneously, digitalization introduces new professional requirements, such as IT competence and continuous skill development.

Digital technologies have established the necessary infrastructure and principles for conducting accounting in the production process. The integration of the double-entry principle, ERP systems, blockchain, and artificial intelligence helps enterprises maintain financial stability, transparency, and global competitiveness.

Accounting has now evolved from a reporting function to a strategic management tool. Overall, digital technologies make production accounting more convenient, accurate, transparent, and efficient. This field, however, demands continuous innovation and technological advancement.

Consequently, it promotes international recognition of enterprises, builds investor confidence, and fosters cooperation with foreign partners. Accounting conducted in compliance with IFRS accurately reflects a company’s financial condition and strengthens its competitiveness in the global market.

Practical Recommendations:

1. Implement digital accounting systems in manufacturing enterprises step by step — starting with the integration of core processes (supply, production, sales).

2. Introduce continuous training programs to enhance accountants’ digital competencies.

3. Develop and support local software (e.g., 1C modules) adapted to national standards and IFRS requirements.

4. Gradually test and apply blockchain and AI technologies in pilot projects to enhance security and analytical capabilities.

5. Encourage the creation and implementation of affordable, customized digital accounting systems for small and medium-sized enterprises through public-private partnerships.

References:

Smith, J. (2020). Digital Accounting in the Digital Economy. Journal of Accounting Research.

Coman, Elena Liliana. Digitalization of Accounting within the Concept of Cost Management. Valahia University of Targoviste.

Nazarov, Sh. (2021). The Impact of Innovative Technologies on Financial Management. Tashkent: University of Economics Press.

Karimov, M. (2020). Principles of Modern Accounting. Tashkent: Economics Publishing.

Abdukarimov, A. (2022). Development of Financial Control and Accounting Systems. Tashkent: Science and Technology.

Norton, D. (2021). Digital Accounting Systems and Transparency. New York: Oxford University Press.