Document Type : Original Article
Authors
1
Master of Accounting, Islamic Azad University, Hamedan, Hamedan, Iran
2
Bachelor of Accounting, Islamic Azad University, Gilan-e Gharb, Kermanshah, Iran
3
Bachelor of Accounting, Islamic Azad University, Borujerd, Lorestan, Iran
4
Master of Accounting, Islamic Azad University, Tuyserkan, Hamedan, Iran
zenodo.org/ajmhss.2025.535695.1018
Abstract
Municipalities face growing demands for improved financial efficiency, transparency, and accountability in the face of limited resources and complex urban challenges. Modern financial and accounting technologies—such as Enterprise Resource Planning (ERP), Business Intelligence (BI), and block chain-based solutions—offer transformative potential for optimizing budgeting and cost control processes. This study investigates the impact of such technologies in selected Iranian municipalities through a mixed-methods approach, combining five-year financial data analysis with in-depth interviews of financial managers. The results show that the implementation of modern financial systems led to a significant reduction in average budget deviations (by 23%) and shortened the time required for closing annual accounts (by 37%). Furthermore, qualitative insights reveal that these tools enhance transparency, improve monitoring efficiency, support timely decision-making, and reduce opportunities for fraud. However, the study also identifies barriers such as inadequate technical training and infrastructure limitations in smaller cities. The findings underscore the strategic importance of digital transformation in local government finance. The paper concludes with practical recommendations for municipal leaders aiming to improve fiscal governance through technology adoption. Emphasizing scalability, training, and integration, these recommendations aim to support more data-driven and accountable municipal budgeting systems in the digital era.
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