Name : Ardzyka Raka Ramadhan

Npm : 1910631030065

Class : 3G / S1 Accounting

Subject : Accounting Information System

Lecturer : Prof. Dr. Sri Mulyani Ak., CA.

Mr. Alam Mauludina

Task : 1. Will an accountant be replaced by an automation system? Explain if you don't

agree!

Answer :

Will An Accountant Be Replaced

By An Automation System?

The answer is, not at all. Automated accounting software simply helps businesses and
financial professionals to do their job more efficiently. Instantly, many parties justified the
publication because in fact part of the role of accountants has been replaced by the role of
technology (information). For some others it does not necessarily justify the publication. For
example, Barclays mentions Jobs are changing, not disappearing
This statement can have a double meaning. The first is the changes that have occurred
in the profession from the number of clerical jobs to jobs that are more discretionary and more
strategic or discretionary in the accounting profession itself.
The second is the changes that have resulted in the decline in the roles and needs of
accountants in the world of work and so that they have to move to other fields of work or
industries. This article discusses changes in the role of accountants over time along with the shift
from previously clerical accountant jobs to jobs that require more judgment, discretion,
innovation or creation, and more strategic ones.
Before we can understand how the trends in the professional accountant workforce are,
it is necessary to understand the areas in which the accounting profession plays its role. Areas in
accounting include financial accounting, management accounting, public accounting and non-
profit entities, auditing, accounting information systems, and tax accounting. Is it true that in the
future jobs in every accounting field will require less and less labor? The following is an
explanation of the types of work inherent in each field in accounting. Discussions related to
technology and socio-economic demographics are provided to provide an overview of trends
between the time of work or the accounting profession.
Financial Accounting. The main role played by professional accountants in financial
accounting is related to the preparation and analysis of financial information in reporting to
external parties. Currently, the generally accepted practice related to financial reporting is to
base it on financial accounting standards or commonly referred to as the Statement of Financial
Accounting Standards (PSAK).
In an international context, financial statements are prepared based on International
Financial Reporting Standards (IFRS). IFRS is implemented using a principle-based approach.
PSAK, the accounting standard in Indonesia, mostly adopts IFRS. This means that IFRS and PSAK
use a principle-based approach. A fundamental advantage of principles-based accounting is that
broad guidelines can be practical for a variety of circumstances, so that it better fits the idea of
IFRS as a globally adopted standard. An inherent characteristic of principles-based accounting
standards is the potential for different interpretations of similar transactions. The problem with
principles-based accounting standards is the lack of guidelines which often have comparability
issues. Existing requirements can sometimes force managers to make judgments and policies
(discretionary) in the process of preparing financial statements. This will increase in line with the
increasing complexity of global business.
This aspect is not possible to be replaced by technology, so that the work of accountants
cannot be replaced by information technology. From a demographic perspective, considering
that the current accounting standard tends to be only one and is used globally, the possibility of
business expansion out of domicile increases.
The increasing business globally, the increasing need for accountants because every
company (including subsidiaries) needs an accountant who is responsible for preparing financial
statements. Global mutation of experts (professional accountants) is likely to occur. This will
affect the variation or shift in the needs of accountants in various countries. A country that does
not have or is unable to produce professional accountants, its needs will be met by accountants
from other countries.
Auditing. In line with developments in financial accounting, auditing also follows a
principle-based approach. This occurs because the audit is carried out to ensure that the
financial statements have been presented in accordance with generally accepted accounting
principles or according to IFRS (in the narrow sense). The need for auditors to make judgments
and policies (discretionary) in the process of auditing financial statements increases with
increasing complexity in business.
Management Accounting. The main role played by professional accountants in
management accounting is related to the preparation and analysis of financial information in
reporting to internal company parties. For example, management accountants are responsible
for producing information on product costs, the budgeting process. Matters that are more
strategic in nature, such as the formulation of company strategies, making strategic planning /
company's blue print, and compiling a compensation system are also part of the responsibility of
a chief financial officer or often referred to as a controller.
Accounting information system. In the field of accounting information systems,
technological developments have driven advances in financial reporting, such as integrated
reporting, extendible business reporting language (XBRL), sustainability reporting, etc. One
possibility that occurs is only a shift in the role of professional accountants in the accounting
information system field.
This is due to the availability of sophisticated software for companies. For example,
Enterprise Resource Planning (ERP) is a business process management software that enables
organizations to use integrated application systems to manage business and automate many
back office functions (including accounting information systems) related to technology, services,
and human resources. The roles of data entry and journaling jobs tend to be replaced by this
technology.
Public Accounting and Non-Profit Entities. Public and non-profit entities have a similar /
similar pattern to private companies (publicly listed firms). As a consequence, changes in the
labor requirements of public and non-profit entities will have a similar impact to what happens
to private entities. As the economy grows and the number of non-profit entities increases, the
need to manage public funds and donors is increasing.
This increases the need for financial reporting and public accountability. The need for
financial reporting and public accountability for non-profit entities, both government and non-
government, is greater than for private entities because providers of funds do not get direct
feedback from fund managers (Hofmann and Mc Swain 2013).
Learning from the changing trends in the workforce over time from various industries
and the various causes of changing labor requirements, this article discusses the changing needs
of professional accountants in financial accounting, management accounting, auditing,
accounting information systems, public accounting and non-profit entities. Indeed, repetitive,
mechanistic, predictable, and uncomplicated work has been and will be replaced by the role of
machines, computers and robots. Some of the accountants work which is closely related to
these characteristics has been replaced by machines and computers.
However, the development of principle-based accounting standards (IFRS) opens up
space for human judgment. Likewise for the context of auditing. Machines, computers, or robots
that have used artificial intelligence will not be able to do the job as well as professional
accountants.
Increased business competition (socio-economic demographic aspect), requires
management accountants to be more innovative or creative and make strategic decisions based
on discretion. It cannot be replaced by technology. Accountant jobs shift to matters that are
closely related to judgment and discretionary and the accounting profession must improve their
skills. The need is increasing in line with global business growth and competition (WEF 2018;
Manyika et al. 2017).

Reference
https://www.accountingseed.com/2019/07/11/when-will-accounting-be-automated/#:~:text=In
%20addition%2C%20will%20accountants%20be,do%20their%20job%20more%20efficiently.
https://feb.ugm.ac.id/id/penelitian/artikel-dosen/2886-benarkah-peran-akuntan-digantikan-
oleh-teknologi-informasi