BUMDes institutions have an important role in improving the village economy through community-based business management. However, the results showed that the application of accounting information systems (AIS) in BUMDes is still very limited. Financial recording is only done manually in the form of cash in and cash out without producing financial reports in accordance with accounting standards. This condition causes several problems, including delays in report preparation, low recording accuracy, and lack of transparency in financial management. This study aims to analyze the application of SIA and financial reports at BUMDes and provide relevant solutions. The research method was conducted through observation, interviews, and document analysis of BUMDes financial reports. The results of the analysis show that limited human resources, lack of technology utilization, and low understanding of the importance of financial reports will be the main obstacles. The solution offered is the implementation of digital-based AIS and basic accounting training for BUMDes administrators. With the implementation of a more modern system, it is expected that financial reports can be prepared in a timely, accurate manner and in accordance with accounting standards. The conclusion of this study confirms that digital transformation in BUMDes accounting system can improve accountability, transparency, and sustainable financial performance.