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Financial reporting is still important in decision-making, accountability, and governance and gives the stakeholders, such as investors, regulators, and managers, a clear view of the financial standing of an institution. Nevertheless, the conventional approach to financial reporting including manual data entry, consolidation of spread sheets, and inflexibility in disclosures have proved inefficient in the world of fast globalization, growth in regulatory requirements, and digital progression.The use of digital transformation technology, including Artificial Intelligence (AI), Blockchain, Robotic Process Automation, Cloud Computing, Big Data Analytics, and Machine Learning, became a necessity and not just a form of supplementation. The technologies have a radical impact on the collection, processing, analysis, and presentation of financial data by financial institutions by providing considerable gains in automation, accuracy, real-time reporting, security, predictive analytics and regulation compliance.There are a variety of motivators behind the study: the growing complexity of international regulatory frameworks, the necessity of improved compliance and transparency, the proliferation of financial data, the growing pressure on stakeholders to report in real-time, the necessity to ensure cost and efficiency, the ability to prevent fraud, and improved strategic decision-making potential. It is worth noting that the research fills the gap in the literature since it is unique in that it dwells on the direct effects of digital transformation on the financial reporting practices of international financial institutions.The study will use descriptive and analytical research design as it will merge both primary data (a structured survey of 100 financial professionals) and secondary data (scholarly journals, industry publications, annual reports, and regulatory publications). Strategy The respondents that were actively engaged in financial reporting processes were the target of purposive sampling. The analysis was conducted based on quantitative (frequency analysis, percentage distribution and cross- tabulation) and qualitative (thematic analysis) data analysis, complemented by the comparative analysis of the traditional and digitally transformed reporting practices.Some of the most important finding are that digital technology are very important in improving the speed, reliability, and accuracy of financial reporting processes. AI and RPA help to automatize repetitive processes such as journal entries, reconciliations, and report consolidation to decrease errors and speed up the reporting process. The blockchain technology enhances audit and prevention of frauds by ensuring unchangeable records of the transaction, and predictive analytics provide the ability to analyze scenarios and make a forecast assisting in strategic decision-making.The study highlights that the use for cloud computing facilitates real-time distribution of the reports among the offices located all over the world, which enhances cooperation and reaction to the changes that occur in the market. Moreover, digital dashboards have user-friendly and interactive interfaces, which enable stakeholders to dive deep into financial information, beyond the Figurehead annual reports of the past.Even with these advances, the research finds a number of challenges. The prohibitive cost of implementation, the difficulty of connecting digital systems to a legacy system, territorial fragmentation of regulations, and the lack of skilled workers became major obstacles to implementation. There is also similar issue related to cybersecurity and algorithmic biases, which pose questions about the reliability of the automated decision-making systems. Additionally, survey respondents self-reported information that employee resistance and lack of training is an obstacle to full adoption of the technology.The theoretical models of the study combine the Agency Theory, the Technology Acceptance Model (TAM), the Information Systems Success Model, and the Regulatory Compliance Theory. All of these frameworks set out the way digital transformation leads to less information asymmetry between principals (shareholders) and agents (executives), better user acceptance due to perceived usefulness and ease of use, better system quality and user satisfaction, and better adherence to changing regulatory standards.To sum up, digital transformation of financial reporting is incredibly advantageous, as it brings not only automization and cost savings, but also more compliance and strategic goals. Nevertheless, to ensure a successful implementation, there are major challenges to overcome such as high costs, integration issues, cybersecurity threats, and workforce adapting

Copyright © 2025 Kaivalya M. This is an open access article distributed under the Creative Commons Attribution License.