Small and Medium Enterprises (SMEs) now consider digital transformation as their main strategic goal because it helps them improve competitiveness and operational efficiency and maintain their business existence over time. The business world has undergone a complete transformation because of fast technological progress which includes cloud computing and enterprise resource planning (ERP) systems and big data analytics and artificial intelligence and digital automation. The technological advancements have transformed management accounting because it now serves as a strategic planning tool which supports organizations in their performance evaluation for their complete operational processes. This study investigates the impact of digital transformation on management accounting practices in SMEs. The research evaluates how digital technologies affect budgeting systems and cost management practices and financial reporting methods and performance assessment systems and decision support systems. The research uses a descriptive and analytical framework which collects primary data through structured questionnaires administered to SME owners and managers and accounting professionals. The researchers measured digital adoption levels and their impact on accounting efficiency and managerial decision-making through percentage-based analysis. The study found that SMEs which adopted digital technologies achieved better financial reporting results through improved accuracy and transparency and timely reporting. The ability to access real-time data improves forecasting and budgeting accuracy while automated systems minimize manual errors and cut down on operational expenses. Digital transformation empowers management accountants to become strategic partners through their capability to deliver data-driven business planning and risk management solutions. The organization faces several obstacles because it lacks sufficient funds and trained staff and it encounters cybersecurity threats. The research demonstrates that digital transformation outcomes improve management accounting practices because it strengthens internal control frameworks and improves performance assessment methods and enables tactical organizational expansion.