Matthew Caporale

Mr. Joshua Gardner

ENGL 2201

3 November 2022

The Move Towards Automation in the Field of Accounting

The field of accounting has been moving towards full automation for decades now, and

we are only starting to realize the importance of artificial intelligence in the field. With this

technology the industry can move towards high efficiency, but we could lose the human element

in the processes. Automation will always be pushed forward but comes at the cost of downsizing

the workforce and relegating high technology to the companies that can pay the most capital.

Annotated Biblography

Spilnyk, Iryna, et al. "DIGITAL ACCOUNTING: INNOVATIVE TECHNOLOGIES CAUSE A

NEW PARADIGM." Independent Journal of Management & Production, vol. 13, no. 3, 2022,

pp. S215-S224. ProQuest, www.proquest.com/scholarly-journals/digital-accounting-innovative-

technologies-cause/docview/2673383237/se-2. Accessed 3 Nov. 2022.

This source describes the basic history and events that led us to come to know digital

accounting. All the way back in the 1950s, accounting was put up as one of the prime candidates

for automation. Doing a job such as balancing the books and keeping track of every single dollar

was an incredible tedious task that required countless recounts and the sheer amount of volume

that these processes required. The move towards automation helped set an easier standard that

every company could follow, as to help solve logistical problems. Most of this also stems from

World War II, which as described in the source helped pave the way towards digital accounting
which would not been seen for the public until 1970. The source also states how digital

accounting has come so far that we could never go back to a time without it.

This source is a scholarly one, and is one of the most useful sources to help with the basic

understand of the need for automation in accounting. The authors do an excellent job in giving a

rather short, but incredibly detailed reasoning behind why these changes occurred in the past.

Rikhardsson, Pall, et al. "Artificial intelligence and auditing in small- and medium-sized firms:

Expectations and applications." AI Magazine, vol. 43, no. 3, 2022, pp. 323-336. ProQuest,

www.proquest.com/scholarly-journals/artificial-intelligence-auditing-small-medium/docview/

2722231122/se-2. Accessed 3 Nov. 2022.

This source mainly talks about artificial intelligence in terms of automatically detecting

fraud in companies’ audits. This would allow for audit firms to shift through more companies

faster than ever before, as the process of automation would take away a lot of the human aspect

and take less time. The source then goes on to describe the cost versus the efficiency of using AI

to sort through records compared to the costs that machine learning would entail. How much can

we push these ideas and profit before the costs catch up. At the end of the text they bring up 3

core questions on “how to develop AI in an auditing firm.”

The source is another scholarly one, and even includes a conflict-of-interest notation at

the end of the text, letting the reader know that none of the authors have any. This is an amazing

resource for my project as it mainly provides the bulk of information on a lot of the positives and

negatives on AI.
Hsing-Hua Hsiung, and Juo-Lien Wang. "Research on the Introduction of a Robotic Process

Automation (RPA) System in Small Accounting Firms in Taiwan." Economies, vol. 10, no. 8,

2022, pp. 200. ProQuest, www.proquest.com/scholarly-journals/research-on-introduction-

robotic-process/docview/2706146450/se-2. Accessed 4 Nov. 2022.

This specific source is based on hands on research done on smaller accounting firms in

Taiwan. Taiwan has a major employee crisis in its accounting field, as retention rate for

employees and new candidates are at an all time low. With this in mind companies look more

towards automation to help fill the extra manpower their firm requires. The research looks to

answer the question of how effective the automation system these companies use, RPA, and

concludes that the system is effective in tax and audits along with the users being satisfied with it

as well. Another thing the source touches on is the limited resources that the smaller firms have

in the face of a new move towards digital accounting compared to the Big Four accounting firms

that have the capital to pave the way in the industry.

The source is another scholarly one and does a decent job at being useful for the main

idea of the move towards automation. What it falls flat on is how this would be reflected across

the world, in situations where there is a population of workers readily available to work for these

accounting firms.

"Automation crucial to manage indirect tax lifecycle, say experts." International Tax Review,

2022. ProQuest, www.proquest.com/scholarly-journals/automation-crucial-manage-indirect-tax-

lifecycle/docview/2717541885/se-2. Accessed 4 Nov. 2022.

This source is a look towards the future and describes how experts say there is no future
in tax firms without automation. Most of this comes from arbitrary rules that a normal person

would have to know the ins and outs of to be able to handle the information correctly every time.

Automation helps by coming in and not missing a beat on any of these compliances while also

keeping the job fast. A major issue that stems from this is companies that don’t have the capital

to invest in automated standards fall behind and could possibly go out of business the more full

automation gains in the field.

The source is a scholarly one published in a journal and while brief is incredibly valuable

to my point about automation. Multiple experts stating that there is no world where automation

doesn’t take over and is crucial in taxes is very useful information to know.

Loten, Angus. "VCs target AI accounting startups as companies look to control spending in

uncertain economy." Private Equity News, Jun 20, 2022. ProQuest,

www.proquest.com/newspapers/vcs-target-ai-accounting-startups-as-companies/docview/

2678324535/se-2. Accessed 8 Nov. 2022.

This source primarily discusses the increasing complexity of accounting as a whole and

why automation can help certain companies prevail in an ever-changing economy. A lot of

artificial intelligence companies are starting to move towards accounting for the near future, as

we are expected to deal with more uncertain times than ever before. The source then also

describes how this will allow firms to better advise companies with financial advice with better

models and less of a lack of human error in calculations. More than ever companies are looking

to be as efficient as possible and tune down spending costs on labor. This will allow said

companies to have a higher profit margin.

This source is a trade one, being published in news specifically targeted towards financial

fields. The information provided in the source is not as useful for the issue my project will target
as it doesn’t get into the detail that I would like it too. However, it provides statements from

experts in the field which is incredibly useful to understand their opinions on the matter.

Mallowah, Esther. "Digital will not change accounting profession much, but risks remain." Gulf

News, Oct 03, 2022. ProQuest, www.proquest.com/newspapers/digital-will-not-change-

accounting-profession/docview/2720361889/se-2. Accessed 8 Nov. 2022.

This source describes an opposite opinion to most of the sources that have come before it,

as it talks about how the field of accounting won’t change much from the state that it is right

now. Specifically talking about the U.S., it talks about how the workforce will still grow and be

needed, as AI cannot fill important roles such as leadership or skepticism. Another thing the

article points out is how AI cannot interpret new opportunities in the economy and we still need

the human aspect to capitalize on them.

This source is a popular one is incredibly useful due to its differing viewpoint compared

to the other sources I’ve gathered. Having differing views is always important to be able to

analyze a situation to its fullest and fully understand a topic.