Developing the Iraqi Accounting System to Align with the Requirementsof the Digital Economy: An Analytical Study of Obstacles andOpportunities in Service Institutions

The study aims to explore the development of accounting system in Iraq based on digital economy requirements, challenges, and opportunities in service institutions. The study is descriptive and analytical; it uses descriptive study, based on studies undertaken in recent years concerning the question of concept, application of digital transformation, International reporting and AIS with the support of analysis indicators for the period 2018-2025. The study seeks to find solutions for the difficulties in the current state of traditional accounting process, low use of blockchain and AI and cloud that affects efficiency on the pace of transactions, the level of transparency, and internal control problems; on the other hand the opportunities (IFRS, cloud computing, digital financial inclusion) is substantial if there is a good use of the digital infrastructure, human recourses and regulatory and legal framework. The study offers solutions through; updating of accounting legislation, low implementation of IFRS, training the staff, and a good use of digital infrastructure for the benefit of service institutions in Iraq.