International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue VIII, August 2020 | ISSN 2454–6186

Automation of Accounting Processes: Impact of Artificial Intelligence

Dr. Chukwuani, Victoria Nnenna¹, Dr. Egiyi, Modesta Amaka²

 ¹Department of Accountancy, Enugu State University of Technology
²Department of Accountancy, Godfrey Okoye University, Nigeria

Abstract: Artificial intelligence (AI) is rapidly bringing change to the way financial institutions are operated and this change is expected to take over the core aspects of the accounting industry. The accounting profession has changed its focus from paper and pencil era to software and computer era. The aim of this study is to examine the impact of artificial intelligence on the accounting industry and the level of advancement of the accounting industry in automating the accounting process. Also, to understand the concept known as Artificial Intelligence, Robotic process automation, and how the 21st-century accountant can adapt to automation in the accounting industry.

Keywords: Artificial Intelligence; Accouting Automation; Accounting Processes

I. INTRODUCTION

Accounting has undergone several developments over the years with the last major innovation being the creation of double-entry bookkeeping over 500 years ago. The 21st century heralds Information and Communications Technology (ICT) – based technologies that have changed ways of doing business in many industries. Accounting is transcending traditional ways of entry and preparation of accounting books to automation. The 21st century is the age of automation and accounting happens to be one of the industries at the forefront. Accounting automation addresses the total lifecycle of accounting, not just as part of a firm’s financial management department. This implies that the whole accounting process, the recording, manipulation, and interpretation of transactional data, is done by software, with minimized reliance on manual transactional entries by people. Accounting today is handled by a system called, ‘Robotic Process Automation (RPA)’. According to AIIM (2018), Robotic process automation (RPA) is a term that denotes software tools that partially or fully systemize human activities that are repetitive, manual, and rule-based. Boulton (2018) sees RPA as an application of technology, directed by business logic and arranged inputs, aimed at automating business processes.