This present conceptual paper examines the extent to which digital accounting systems create transformations in financial practices across small and medium-sized enterprises (SMEs). With the increased infusion of technology in various dimensions of business practices, such as SMEs starting to recognize the need to utilize digital accounting and finance, the focus remains on efficiencies and decision support. Using a technology-organization-environment (TOE) framework and research grounded in resource-based view (RBV) theory, a conceptual model of the relationship between the adoption of digital accounting systems and financial transformation among SMEs will be proposed. Literature reviewed for the paper occurred between 2019 and 2025 and shared information corresponding to factors influencing the transition to digital tools and systems (drivers and barriers) as well as key outcomes. The results provide insights for SME managers, government and policy makers, and systems developers who are interested in facilitating this transition to digital accounting and finance for the purpose of sustainable business practice.