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Information technology and the accountant today: What has really changed?

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DOI: 10.5897/JAT2019.0358

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 Vol. 12(1), pp. 48-60, January-March 2020
DOI: 10.5897/JAT2019.0358
Article Number: 0F5E6B663319
ISSN 2141-6664
Copyright © 2020
Author(s) retain the copyright of this article Journal of Accounting and Taxation
http://www.academicjournals.org/JAT

Full Length Research Paper

Information technology and the accountant today: What

has really changed?
Friday Imene1 and Japhet Imhanzenobe2*
1
Department of Accounting, Faculty of Management Sciences, University of Lagos, Nigeria.
2
Department of Accounting, School of Management and Social Sciences, Pan-Atlantic University, Lagos, Nigeria.
Received 27 August, 2019; Accepted 21 February, 2020

One of the major advancements in information technology (IT) is the use of IT tools to perform
accounting functions and processes. In this paper, we provide discussions on how IT has affected the
accountancy profession. We argued that the traditional duty of accountants is the preparation of
financial statements, and consequently, several tasks are carried out throughout that function. In the
pre-IT era, accountants were faced with delays in transaction processing and reporting, continuous
errors and misstatements, and difficulty in storing large data on papers. However, following the
emergence of sophisticated IT tools, accountants in the IT era are now able to prepare and present
financial statements more timely and accurately. The availability of the internet has also increased
access to financial reports by external users. This paper further argues that in light of the continuous
advancements in IT, future accountants and accounting processes are likely to; be cloud-based,
communicate with and through Artificial Intelligence machines; invest in Big Data and cyber-security,
and explore the potentials of Virtual Reality and Augmented Reality in meeting users’ information
needs. Hence, accountants and accountancy firms are advised to embrace new IT skills and tools, and
keep up with technological trends.

Key words: Accountant, information technology, accountant, information technology, cloud computing,
artificial intelligence and the big data.

INTRODUCTION

It is not debatable to say that a lot has changed in the periods into an entirely new IT-based model that gets the
accounting profession in the past few decades, especially job done more effectively, efficiently and timely. Today,
following the emergence of information technology (IT). In technology has successfully penetrated the business
fact, the use of modern IT tools to perform accounting world and there is hardly any aspect of business that is
and financial reporting functions is one of the most recent not automated- such that, as simple as placing an order
breakthroughs in technology that has really affected the for materials required for production, the use of IT in this
profession. Technology has changed the traditional aspect has automated the inventory control system and
accounting system which was previously characterized hence, machines now independently place (Ghasemi et
by series of paper-based processes that required longer al., 2011) orders at certain re-order levels even without

*Corresponding author. E-mail: jimhanzenobe@pau.edu.ng.

Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution
License 4.0 International License
 Imene and Imhanzenobe 49

frequent intervention from management. This and many storage of financial information.
more file-related worries of accountants have been Today‟s accountants are exploiting emerging
completely erased by technologies today- and these technologies to help them complete their tasks more
technologies are still evolving, which raises a lot of effectively, efficiently, accurately and timely or simply:
questions about the position of accountants in this IT era. from the incised clay tablets of the Sumerian scribes,
Traditionally, accounting is the art of recording, through the adding machines of the 19th century, to the
classifying and summarizing and reporting information (in calculators and computers of the 20th century. However
terms of money, transactions and events), and all of these technological developments were simple
interpreting the results in a manner that will facilitate propositions by comparison with the well sophisticated
decision making by users (Dandago and Rufai, 2014). current technologies that are now rapidly reshaping the
Accounting as a profession has also been conceptualized accounting profession in general, and accountants in
as an organized system of activities that collects, particular. Accountants in practice are now changing the
measures, recognizes, processes and reports financial ways in which they communicate and collaborate with
information about an economic entity (Ballada and stakeholders they work with and for, shaping new
Ballada, 2011). The accounting system works in cyclic working patterns that are technologically driven, and
manner- collecting information on transactions and redefining their knowledge to cope with new demands
events through various documents issued and received. (ACCA, 2013).
These documents are traditionally referred to as source Many studies (Salehi and Torabi, 2012; Dandago and
documents,-carrying information that accountants collect Rufai, 2014; Shirzad and Nikzad, 2014; Al-Zoubi, 2017)
and compile into the year-end- financial statements that have provided evidences on the significance of these
are useful to internal users (that is, management and technologies in the accounting profession and a lot has
employees) and external users for the purpose of been said of the benefits of these technologies to
decision making (Hall, 2012). However, traditionally, the accountants in practice. However, not much has been
accounting process encompasses a lot of tasks that said about how these technologies have really affected
require time to complete, and given that organizational accountants in practice today- in terms of the specific
operations are continuous- the responsibilities changes that these technologies have made in the
accountants have become demanding. Furthermore, accounting profession and how these changes affect
apart from providing information for external users, accountants in practice. This paper however applies
accountants are also obligated to provide information for theoretical approach to the concept of information
internal consumptions. One can begin to imagine how technology, how these technologies have affected the
cumbersome the traditional or file-based accounting routine of accountants today, and how accountants
system would have been. around the world are trying to cope with the significant
However, advancements in IT have undeniably changes in their tasks. The remainder part of this study
improved the accounting system, and in turn transformed will be organized into discussions on the implications of
economic life. Computers and other digital IT tools have information technologies for practicing and aspiring
increased office productivity, facilitating quick exchange accountants.
of information, enabling collaboration with distant
business partners, and the collection and analysis of
data. Now, every part of the accounting process has LITERATURE REVIEW
been automated. From the point of transaction,
recordings and processing of periodic information to A number studies have provided evidence on
preparation of final financial reports, accountants now transformational effect of information technologies (IT) on
depend on these technologies to provide the required the accounting profession and the way accountants
information that will facilitate the reporting process (Lim, discharge their responsibilities. However, for the purpose
2013). of this study, we will review few of these studies as they
When we talk about technologies, it is important we relate to the current discourse.
demystify the concept to facilitate its contextual usages. Al-Zoubi (2017) provided evidence on the title “The
Technologies may be in form of hardware (physical Effect of Cloud Computing on Elements of Accounting
devices through which accountants input data, process Information System”. The paper employed a descriptive
the data and obtain information in form of reports), or approach implemented through the collection of prior
software (computer programs installed into the hardware, literatures on cloud computing and information
to enable accountants perform their tasks effectively and technology, and their impact on the accounting
efficiently). Accountants today depend on both hardware information system. However, based on the literatures
and software technologies to carry out major accounting reviewed, he concluded that cloud computing reduces the
functions and also ensure timely reporting, and this has size of the enterprise in terms of the building and the
also inspired the creation of highly sophisticated offices because they allow property anywhere without
technologies deployed for collection, processing and management commitment to a specific location; improves
50 J. Account. Taxation

operational performance in terms of facilitating the access provided by cloud computing makes room for
completion of operations and accurate accounting continuous reporting (and possibly continuous auditing)
operations; and it the use of software and physical Some evidences were also provided by Sacer and oluic
equipment without necessarily buying the software and (2013) in their study titled “Information Technology and
install it on their computers. Accounting Information Systems Quality in Croatian
Nwakoby et al. (2015) also did a study titled Middle and Large Companies” which revealed through
“Information Communication Technology (ICT): A findings that IT influence the way accounting information
Panacea for Accounting Practice in Nigeria”. The paper system operates, contributes to preparing, processing,
investigated the application of Information and presenting, and delivering accounting information. It
Communication Technology (ICT) in efficiency and significantly contributes the accuracy and timeliness of
speeding up of the accounting process, and how these accounting reports and the quality of such reports.
technologies have ensured efficient delivery of Moghaddam et al. (2012) also provided evidence on
accounting works. Survey method was adopted and “The Impact of Information Technology on Accounting
questionnaire was the major source of data collection. Scope in Iran”. The findings of the study reveal that
Data collected were analyzed with five point Likert scale information technology increases accuracy in the
and ANOVA was used to test the formulated hypotheses accounting process and decreases cost of gathering
with the aids of SPSS version 20.0. From the results information. It has affected accountants, as they now
obtained, it was discovered that ICT application has a require new skills in such areas as applied accounting
positive effect on the efficiency of accounting practice, software, excel and access (among others). Furthermore,
specifically in the areas of ensuring timely delivery of the study reveals that IT is set to provide the necessary
accounting works in Nigeria. Hence, the authors atmosphere for improving the accounting profession and
encouraged accountants and accounting firms to the role-creating more suitable accountants in
incorporate ICT in all aspect of accounting practices for organizations".
effectiveness. Finally, Salehi and Torabi (2012), in their study titled
Also, Dandago and Rufai (2014) did a study on “The Role of Information Technology in Financial
“Information Technology and Accounting Information Reporting Quality: Iranian Scenario” examined the role of
System in the Nigerian Banking Industry”. In this paper, information technology in financial reporting process and
the authors argued through findings that the use of the quality of financial reports produced. To achieve this,
information technology can improve performance by a questionnaire was designed and distributed to a sample
reducing operational cost, facilitating transactions, of respondents. For the purpose of testing the
relevant in simplifying issues and in the provision of hypotheses, T-Test, ANOVA and Duncan‟s Test were
quality information, and thereby recommends that employed. Finally, it revealed the information technology,
Nigerian banks should invest more in IT tools for efficient the financial reporting process as well as the relevance of
service delivery and profitability. This finding conforms to the resulting financial reports. It was also discovered that
the arguments of Moorthy et al. (2012) in their study titled information technology enhances the comparability, and
"Application of Information Technology in Management diminishes the negative impact of the dominant limitations
Accounting Decision Making”. This study also indicates on the qualitative characteristics of financial statements.
that IT has major impact on operational costs, and
reveals that IT can improve the efficiency of the
accounting department, thereby producing result MATERIALS AND METHODS
effortlessly, timely and accurately". This study adopts a qualitative design. A comparative analysis was
Ebenezer et al. (2014) also carried out a study titled done by collecting prior literatures on various areas of information
“Accounting in the Cloud: How Cloud Computing Can technologies (IT) and how these technologies have transformed the
Transform Businesses”. The study shows that cloud accounting profession in general and the way accountants (in
computing can still be applied successfully for accounting particular) carry out their tasks. The aim is to provide qualitative
purposes. Though cloud accounting may seem not too evidence on the interaction between accountants and IT through a
comparative analysis between accountants in the pre-IT era and
different from a desktop accounting in nature, but in accountants in the IT era, as well as predicting what may be
practice, cloud computing has a lot of ways by which it expected of accountants in the nearest future. To this end, we
can enhance accounting. The goal of an accounting reviewed several literatures to support our discussions and also
information system is to conveniently collect and store provide the basis for our conclusion.
data about transactions and events; process such data
into useful information for the purpose of decision
making; and ensure adequate controls are in place to The accounting profession and what accountants really do
safeguard the organization„s assets. So, given the
In practice, accountants are either involved in preparing and
availability of cloud computing, accountants now have the
presenting financial statements or auditing already prepared
opportunity to be mobile with everything they do; financial financial statements to ensure that they reflect a true and fair view
information can no more be delayed as the easy real-time of the economic reality being measured and reported. It is important
 Imene and Imhanzenobe 51

Figure 1. The Pre-I.T Accountant.

Source: Modified from Whatshappening (2018).

to note that either of these activities requires different processes emphases on revenue, expenses and other core financial items,
that accountants have to go through in order to provide the required ensure appropriate review of budgets and expenditures for external
information for internal and external usage. The argument here is funding purposes, prepare the core financial statements at the end
that, using numbers and financial statements, accountants describe of each financial year, interact with auditors (internal and external)
the health of an organization (as a whole) or the various parts of the in order to complete audit tasks, compile other significant
organization. Accounting numbers and ratios tell the story of the information to prepare off-balance sheet engagements, monitor the
business, just like a picture tells a thousand words (Imhanzenobe, input and handling of financial data, ensure and supervise the
2020) Accountants analyze revenue and profits/losses; supply establishment, maintenance and coordination of accounting and
owners and other users with the required information to make internal control procedures, and recommend and work with IT
informed decisions overtime. This information forms the basis of a experts to maintain financial data bases, computer software
company's year-end financial report and legal filing reports. systems and manual filing systems among others.
Accountants usually operate within the organization by gathering
information on transactions and events within a specific period and
recognizing the costs relating to these transactions and events in Accountants in the pre-IT era: what ‘was’
the appropriate books of accounts. This process continues on a
daily basis to enable accountants keep track of the financial Prior to the information technology age, the accounting process
condition of the business, and evidence of these transactions and was simply manual-based. At this point, accountants were charged
events are kept. The accumulated information relating to with the responsibility of obtaining and keeping record (in files) of
transactions and events facilitates the preparation of periodic financial transactions and events. These files were often revisited
reports by accountants, upon management requests to facilitate from time to time, and updated manually as changes in business
decision making. transactions and events may warrant. This process continues until
the end of the accounting period when all books will be closed and
“The totality of what accountants do within and outside the the financial statements are prepared and made available.
organization has to do with information. The argument centers on The accountant in Figure 1 is an example of pre-IT accountants
the fact that accountants work with information on a daily basis. who are compelled to implement tasks manually. Most tasks may
They receive information from transactions and events, record require the review of several files to be completed and this (among
these information in the appropriate books, process the information other factors) made the manual accounting system a dilemma for
into specific reports to meet internal (management) or external (that accountants (in particular) and organizations (in general). Other
is. other stakeholders) needs” (Imene and Egbe, 2018). facts about accountants in the Pre-I.T era include the following;
At the end of the financial year, all books of accountants are closed
and the aggregate figures are compiled into the year-end financial
statements. These financial statements are first audited by the RESULTS AND DISCUSSION
internal auditors in line with the established internal control system
of the organization, and then the external auditors will audit the Manual recognition of transactions and events
financial statements to ensure that they show a true and fair view of
the economic reality being measured before such financial
statements are released for public consumption. The major tasks of
In the pre-IT era, accountants were required to manually
accountants within an organization are simply to; process monthly recognize transactions and events on papers in the
payrolls, demystify billing invoices and accounting policies to appropriate books. This means that the transactions or
affected staff and clients, ensure the preparation of budgets, with events must meet the measurement and recognition
52 J. Account. Taxation

criteria of any element of accounting were recorded the pre-IT era, financial statements were prone to errors
manually (Lim, 2013). Accountants were also required to and material misstatements. This can be traced to the
reflect periodic adjustments which were also made point of recognizing transactions and events in the
manually. As much as transactions and events were appropriate books and making subsequent adjustments
manually recognized in the appropriate books, periodic manually.
adjustments for entries were also manually carried out by Larger number of people to adequately meet the
accountants in the pre-IT era. Here, accountants were information needs of management and external users.
forced to manually record and carryout arithmetical In the pre-IT era, the effectiveness and efficiency of the
adjustments for entries as required by the daily accounting and financial reporting process was directly
operations of the organization. linked with the staff strength of the accounting
departments and their skills. Hence, the accounting
departments were often run by the accountant and other
Delay in preparation of periodic reports accounting personnel in charge of various aspects of
Generally, one of the major tasks of accountants is to financial reporting such as payroll, asset management
continuously provide management with periodic reports and internal control (among others). This was necessarily
on internal operations- to enable management make achieved by large organizations in order to facilitate the
strategic decisions. In the pre-IT era, these reports were accounting and financial reporting process.
often prepared manually, and hence, these reports were
always delayed due to delayed access to the required Accountants in the IT era: what ‘is’?
information and subsequent verification of this
information. Today, the entire accounting and financial reporting
process has been automated. Technologies have been
designed to enable accountants carry out major tasks
Complicated record keeping due to large number of and execute complex operations more effectively,
files efficiently and timely (Shanker, 2013). The numerous
tasks completed by accountants in the pre-IT era which
The traditional Accountant is known for “book keeping”, a
required a rigorous process, more personnel and much
term that connotes custodian of papers and files. This is
time have been simplified into technologies that
because business transactions and events are often
accountants can easily operate. These technologies
evidenced by documents such as invoices, receipts,
today are in two forms; the software technologies and the
credit notes and debits notes among others. Hence, this
hardware technologies (Abadi et al., 2013). The simple
made record keeping by accountants a very complex
difference between these technologies is that while the
task, especially for big organizations where large volume
accountants interact with the later directly and physically,
of data are received and processed on a daily basis.
their relationship with the former is only through the later.
It was somewhat difficult for accountants in the pre-IT
Figure 2 shows an I.T accountant working with a
era to process transactions, as access to documents
computer in an automated office environment. The
required to process these transactions were not often
technologies are further explained in subsequent
readily available. For example, as it may require
paragraphs.
accountants to determine the credit worthiness of a
customer before a credit sale is granted, this transaction
may be delayed until the accountant is able to access all Hardware technologies
credit record of the customer with the organization- a task
which may take quite a tussle to be completed effectively Hardware technologies are the “physical, tangible devices
and efficiently. When it comes to preparation and that form the computer” (Hejase and Hejase, 2011).
presentation of financial statements, this task was often Accountants are required to effectively perform and
delayed due to the tedious process of verifying all complete tasks by directly interacting with these
transactions and events, and closing all books of technologies (Ballada and Ballada, 2011). These
accounts before drawing out the final accountants (Salehi technologies range from simple devices like smart
and Abdipour, 2011). Accountants would have to take phones to computers and other more complex devices
enough time to verify entries from the point of initiation to such as input devices, processing devices and output
the closing figures in order to ensure that information in devices that accountants use in the preparation and
the financial statements are error-free and without preparation of financial statements, and auditors also use
material misstatements. in auditing. These hardware technologies will be
discussed in further paragraphs of this paper.

Continuous errors and misstatements Software technologies

As a result of the complex nature of accountants‟ tasks in These are “program essentials for the startup, control,
 Imene and Imhanzenobe 53

Figure 2. The IT accountant.

Source: Shutterstock (2017).

and management of the computer system” (Hejase and elimination of files, preparation and presentation of
Hejase, 2011). These programs actually enable financial statements to users. Today, the accountant has
accountants to perform specific tasks or group tasks the opportunity of meeting the information needs of all
through the hardware technologies. Some examples of stakeholders in the financial reporting process more
such software technologies are accounting software for effectively and efficiently. Furthermore, the connection of
payroll, inventory management, enterprise resource computers through an information system within and
planning (ERP) and others. outside the organization gives the accountants exclusive
access to the right information at the right time.

Accounting software
Internet, intranet and extranet
It is important to note that the combination of software
and hardware technologies in the IT-era has changed the The intranet is a type of network built to facilitate
routine of accountants and also simplified the accounting communication between computers and other electronic
and financial reporting process. From the point of devices within an organization. This type of network
recognizing transactions and events to the preparation of enables communication and transfer of information
the financial statements, the numerous process involved between users within a single organization- so
as experienced in the pre-IT era has been simplified with accountants are able to get access to information on
just a click of the button. Today, accountants are able to transactions and events from any part of the organization
get access to any information or prepare any form of with just a click of the button. The extranet unlike the
internal or external report with just a click of the button. former connects computers and other electronic devices
The IT-Accountant is now aware of the following; between two or more organizations. Extranet is built to
facilitate communication and corroboration between
organizations- so accountants are able to get access to
Personal computers (PCs) information on third-party transactions and events. The
internet, unlike the other types of network is a network of
This consists of devices ranging from desktop computers computers around the world. It gives accountants
to laptops, tablets and smart phones which accountants unrestricted access to external information and also
now use to collect and process and also report facilitates preparation and presentation of financial
information to users. The emergence of computers and statements (Dandago and Rufai, 2014). The internet has
other electronic devices have simplified the tasks of made it possible for accountants to implement digital
accountants especially in the area of transaction financial reporting, and it has also facilitated distribution
processing, recording, storage of large information, of financial reports to all stakeholders.
54 J. Account. Taxation

Accounting software customer‟s files, select a statistical sample of the

accounts, and print a working paper sheet.
This is an application computer program designed to
execute, manipulate and manage (Hejase and Hejase,
2011) the basic accounting functions through a simplified Word processing
3-stage process of input, processing and output. All the
processes involved in the accounting and financial Word processing is computer-assisted creation, editing,
reporting process have been built into the software, and correcting, manipulation, storage, and printing of textual
therefore, accountants only need a computer device data (Ghasemi et al, 2011). Today‟s Accountants use
through which the software will work, and the skill word processing software to prepare reports, billings,
required to execute tasks through the software. memos, and financial statements.
Furthermore, accounting software can be classified as
low-end or high-end. The low-end software is “all-in-one”
software, such that all functions of an accounting system Graphics software
are performed within the software- hence, it is mostly
used by accountants in small firms. On the other hand, The use of graphic software enables accountants to
the high-end software creates a separate module for aestheticize the financial report. The graphical outputs
each accounting function, and each module checks data can be printed on paper or displayed on slides,
for correctness, processes it, and updates all relevant transparencies, and photos. It is important to note in
accounts, and finally, produces outputs such as practice today, auditors and managerial accountants use
documents and reports. The high-end software is often the graphics software to analyze financial reports into
used by large organizations because it enables separate graphs and tables to facilitate decision making by users.
modules such as payroll, fixed assets management,
inventory and so on to be handled by separate individuals
in the accounting department Database management software

One aspect of accountants‟ task is called record keeping.

Tax preparation software This means that accountants are custodians of
information on transactions and events, and as a firm
One of the most demanding aspects of accountants‟ job expands, so does the volume of transactions processed
is tax planning and preparation. The continuous and stored by accountants. The emergence of database
adjustment in tax laws in Nigeria makes it an exceedingly software systems has significantly reduced the rate of
difficult task for accountants to deal with. Manually, the inefficiencies and redundancies in information handling.
process has become more difficult and time consuming. In fact, relational database systems such as enterprise
Hence, with the availability of tax preparation software to resource planning (ERP) depart from the accounting
accountants, this task can be performed easily and faster equation method of organizing data- such that it enables
through the computer. As a result, even complex accountants to captures both financial and non-financial
calculations can be performed via computers in a short data, and also, it facilitates storage of large files in
period of time. It is important to note that some highly simpler forms.
sophisticated high-end accounting software provides a
separate module for this task.
Payment technologies

Auditing software The emergence of payment technologies (such as

Remita) has enabled firms to connect to banks and
Like the accounting software, technology has also implement electronic transfer of funds. Hence, firms are
facilitated the auditing process through the creation of able to execute receipts and payments functions
auditing software. This is because if auditors perform electronically, thereby reducing the risks that accountants
auditing functions manually, it takes a lot of time and face by holding cash (Shanker, 2013). The accountant
energy. However, audit software packages are currently today has been relieved of the burden of carrying
available for auditors in low-end (for auditing small firms) physical cash or keeping cash (a function which
and high-end (for auditing larger firms). For example, the accountants are traditionally known for).
trial balance software is a module under the high-end The adoption of computerized database systems has
audit software that enables auditors to input the working also facilitated the automation of accounting information
trial balance, handles all adjusting entries, and system. Accounting information systems equipped with
automatically computes the adjusted trial balance. such technologically advanced tools as mentioned above
Furthermore, these audit software packages can access can now perform accounting functions more effectively
 Imene and Imhanzenobe 55

and efficiently and at reduced costs. Hence, accountants while accountants in large firms are able to access all
are now required to work in a digitalized environment with information required for compiling the final accountants
exclusive access to information with the click of a button. easily and faster.
As a result of interactions between accountants and
technologies (hardware and software), valuable
opportunities became available to improve the services Improved accuracy and financial reporting quality
delivered to their business clients as a result of reducing
and possibly eliminating those repetitive, time-consuming, The emergence of IT has helped accountants to reduce
and menial tasks (Rkein et al., 2019). The following can or eliminate completely the problem of material errors
be observed of accountants in the IT era; and misstatements in financial reporting (Salehi et al.,
2010). The problems of inaccuracy that are peculiar with
the file-based accounting system have been completely
Digital recognition and adjustment of transactions taken care of (Shanker, 2013). However, one limitation of
and events the IT-based based system is that output depends on
input. Hence, accountants must ensure that correct and
Accountants today recognize transactions and events accurate information are put into the system.
digitally as opposed to the traditional file-based method.
The recognition of transactions and events digitally has
also enhanced fast and easy adjustments in accounting Increased access to financial reports by external
figures due to subsequent events. users

The existence of special IT tools has enabled accountants

Timely preparation of financial reports to effectively and efficiently make financial reports
available to external users such as shareholders,
Today, the combination of hardware and software creditors, the media and regulatory institutions. This has
technologies enables accountants to easily generate been facilitated through the use of internet and social
financial reports with a simple click of the button on the medial channels such as emails, twitter, and Facebook
computer. However, this simplified task required a very page and so on (Moradi et al., 2011).
long process that involves review of numerous files and a
long period of time to achieve generate.
Enhanced auditing and investigation

Record keeping and data storage has been simplified The existence of special IT tools for auditors (e.g. the
audit software) has helped to simplify the auditing
One of the obvious benefits of IT adoption by accountants process, and in turn enabled auditors work effectively and
is the enhancement of record keeping and storage. IT efficiently. Today‟s auditors are IT-based accountants
has made it easier for accountants to store large data in that execute tasks using computer languages.
simpler forms by converting most documents from paper
to electronic forms.
Accountants in the post IT era: what ‘will be’?

Faster transaction processing While accountants around the world have witnessed a
dramatic change in the ways of doing things in practice,
Transaction processing is now easier and faster for we cannot but imagine what the future holds for
accountants in the IT era. For example, the credit accountants in practice. Technologies are evolving every
worthiness of customer can be determined by retrieving day, and by implication, accountants in practice will
the customer‟s information through the click of a button continue to witness new technologies that can do more
(Sacer and oluic, 2013). than the existing ones. However, for the purpose of this
study, we have gathered evidences on possible
expectations for accountants in practice, in relation to
Timely preparation and presentation of financial technological advancements. This is expected to give
statements accountants a sense of what is to come and how they
can prepare towards it (Figure 3).
When it comes to preparation and presentation of
financial statements, IT has enhanced the entire financial
reporting process (Moscove et al., 1999). Accountants (in The cloud-based accountants
small firms) are now able to generate final reports quickly
and easily with just the click of a button on their computer, This is one of the current technological trends and it has
56 J. Account. Taxation

Figure 3. The future IT accountant.

Source: iStock (2017).

enjoyed wider acceptance in the business world due to the prospects of an agile and competitive service
the numerous opportunities accompanying its adoption. delivery. Also, with the increasing reach of the internet,
Cloud computing has been defined as a technological cloud computing is edging closer to ubiquity. In Australia,
platform that facilitates available, convenient and on- most accountants have started embracing these
demand network access to a shared pool of configurable technologies; this is also the case for CPAs in the U.S.
computing resources (such as networks, servers, furthermore around the world, organizations of all sizes
storage, applications, services) that can be rapidly and accountancy firms are beginning to recognize its
provided and released with minimal management effort or benefits, as increased adoption allows them to reduce
service provider interaction (Wang, 2011; Mell and their technology infrastructures and move away from
Grance, 2011). It is simply a computing resource expensive hardware storage solutions. Hence, it is
procurement and deployment model which enables an expected that in the nearest future, accountants will be
organization to obtain its computing resources and fully cloud-based and accounting services will also be
applications from any location via an Internet connection fully cloud-based.
(Chan et al., 2012). The unique feature of cloud
computing is its ability to provide a three-dimensional
cloud services model, namely: Software as a service Accountants and the big data
(SaaS), Platform as a service (PaaS), and Infrastructure
as a service (IaaS). This means that users of cloud One thing is certain of the business world, this is the fact
computing will be able to reduce costs by eliminating that in the nearest future, following the converging
physical infrastructures, and tasks can be executed from technological trends, the shift from analogue to digital,
any part of the world. Hence, we can boldly say that widespread mobile device adoption, internet-connected
accountants in the future may be able to perform systems and „exhaust data‟ from physical objects (the
accounting functions on cloud without being limited by internet of things), a vast amounts of structured and
physical structures. unstructured data will be created. Hence, this will place
more responsibility on future accountants as they attempt
“We foresee that accountants and the organizations they to collate, manage and analyze it effectively, for better
work with and/or for will be exploiting the cloud as a result decisions and to generate a competitive advantage for
of the opportunities that comes with it. Accounting business. It is also important to note that the technology
systems were among the first software to become to achieve this is becoming more accessible and
available online, and joined by a growing range of affordable.
business „software (ACCA, 2013).”
“Vendors of software for business intelligence, enterprise
Cloud-based accounting systems are capable of raising resource planning, sales management and more are
 Imene and Imhanzenobe 57

adding the capability to analyze vast amounts of data „in- demands. This is because AI will drive greater product
memory‟, and cloud-based platforms are emerging to variety, with increased personalization; attractiveness
provide on-demand access to the tools that “accountants” and affordability over time (PwC, 2019).
need to tap into the „internet of things‟ and unlock the EY is set to launch its first AI Center in India. This center
power of big data in the nearest future (ACCA, 2013).” will bring together teams of multi-disciplinary practitioners,
combining expertise in AI, Robotics etc. along with
It is important to note that the “big data” is undeniably domain experience in sectors to achieve more in the
gaining popularity, as the vast amount of data being accountancy profession (Electronics Media, 2017).
collected and stored is reshaping the business world in KPMG is said to have been using innovations from
general. Firms are now creating data-driven goals, McLaren Applied Technologies (MAT) in its audit
measuring these goals accurately through analytics, processes since 2015. The firm also has an alliance with
while many firms are now listing data as an asset. Hence, IBM‟s cognitive computer known as “Watson”. This
where accountants can make their mark is with distilling means that the firm has already introduced AI into its
data - that is turning information into actionable insights. operations (O'Neill, 2016).
Deloitte on the other hand already uses an AI platform
called “Kira Systems” to enhance its assurance services
Accountants and Artificial Intelligence (AI) (O'Neill, 2016).

Artificial intelligence (AI) describes a machine or software

that can demonstrate behaviour indistinguishable from Accountants and cyber security
that of the human brain. Also, according to Hejase and
Hejase (2011), “Artificial intelligence is the sciences of As the world is moving to a small global village and more
making machines imitate human thinking and behaviour”. data are made available as discussed earlier (the big
This is not yet possible but there are many examples of data), we cannot over-emphasize the importance of cyber
software that can demonstrate limited „intelligence‟ security to accountants. Cyber security is the protection
(depending on how you define this). Most of us have of computers, networks, programs, and data against
used software that can emulate the decision-making unauthorized access or attack. Accountants are, by
processes of an expert: lots of software now has expert nature, custodians of information, and by implication, they
knowledge built in and the capacity to „learn‟ how to are expected to ensure that such information are
improve its own processes and performance. The internet secured. Therefore, it is evident that accountants and
is awash with software agents (bots) that mimic human accountancy firms in the future will be investing in cyber
behaviour as they make independent decisions, learn security to protect their interests and the interest of their
and interact with each other. clients.

“It is predicted that by 2030, accountants will increasingly “Individuals charged with the responsibility of securing IT
rely on the expert knowledge built into software in a systems often face a daunting challenge in today‟s world
range of scenarios. Given that auditors use smart full of unguided rapid technological advances,” says
software to automate parts of the auditing process, and Frank Colantonio, CPA, CA, CITP, and a director with
there are other specialist applications to help with CPA Canada. Furthermore, a security breach can trigger
compliance in areas ranging from financial reporting to unpredictable costs, so it is not surprising to see
international tax (Yanian, 2018).” professional accountants wanting companies to dedicate
resources aimed at protection” (AICPA, 2015).
AI systems are improving quickly. They are capable of
providing results that can be very accurate, and so, Security is the number one issue facing accountants in
superseding human efforts in most cases. However, AI this IT-era, and it is evident that as accountants‟ use of
has not been able to replicate the human intelligence technology increases further, investment in cyber security
(Institute of Chartered Accountants of England and will become inevitable; and in fact, some accountants will
Wales, 2017). Notwithstanding, it is important that we be forced to specialize on cyber security, especially for
appreciate the strengths and limits of these various forms digital reporting purposes. Hejase et al. (2015) argue that
of intelligence, as this will help build our understanding of as information technology companies are improving the
the best ways of combining humans and computers to vulnerability of their software and hardware products,
work together effectively. Hence, Yanian (2018) noted hackers, malicious intruders, and above all cyber warriors
that there have been recent emphases on AI by the big-4 are targeting the weakest link of the chain: the operating
accountancy firms as revealed below; people. Hence, it will be a bad idea if accountants and
accountancy firms ignore cyber security and its potential
PwC, in their global AI study, discovered that 45% of the danger. If accountants don‟t have a plan in place, in all
world‟s total economic gains by 2030 will be attributed to likelihood, their services may be breached at some point
product enhancements and stimulating consumer in the future.
58 J. Account. Taxation

Accountants and Virtual Reality (VR)/Augmented today. There is need for accountants or accountancy
Reality (AR) firms to invest in acquiring IT knowledge and skills, for
the purpose of being relevant in this IT-era, and to be
Accounting and financial reporting has been about able to withstand the wave of the post-IT era. The
representing reality with numbers for the purpose of accountant of the future will need to know more about
enhancing the decision of those affected by such reality. technology. In fact, ACCA in 2013 revealed that unless
This means that accounting numbers have been the accountants embrace technology they will follow the
closest measure of reality prior to this time. However, the dinosaur into extinction – individually and as a profession.
existence of virtual and augmented realities and their
potentials can be seen as a promising ground for
accountants to improve financial reporting. Virtual reality Investment in IT Tools
(VR) is simply a computer-generated simulation of a
three-dimensional environment or image where a person The accountant today needs more than just the ability to
can interact in what seems like a real or physical way by get the work done, but the right tools that will enhance
using special electronic equipment, such as a head- the working process. Along with acquiring IT skills,
mounted display (HMD) helmet or sensor gloves. A accountants will also need to invest in IT tools that will
space flight simulator is an example of VR (Bellini, 2016). enhance their work, in order to remain competitive and
While VR places a person in an artificial, computer meet the demand of clients and expectation of users in
generate world, AR technology combines the real world the future (Salehi and Huisi, 2011). In fact, according to
with images, video and information that enhance or ACCA (2013), it will be no surprise that accountancy
supplement the person‟s experience. firms will begin to give clients mobile applications to
access their services and engagements.
“As virtual experiences become more immersive and
interactive, accountants will face new opportunities and
new challenges.“ (ACCA, 2013). Be open to IT ideas

With the existence of VR and AR as emerging The traditional accountant is known to be a very strict and
technologies, it is certain that users‟ expectations will forward person, not really open or friendly due to the
increase in the nearest future, and one of the resulting nature of their job and the need to maintain
effects will be demand for more disclosures (something confidentiality. However, the emergence of IT and its
more than just numbers). Accountants can explore these importance to accountants have compelled accountants
technologies to provide users of accounting information a in theory and practice to rely on relationships with IT
closer touch to the economic reality being measured by experts and their supports to get tasks completed
reporting numbers. Special VR and AR reports can be effectively and efficiently. Accountants need to be open to
prepared to facilitate users‟ understanding of what is, why ideas from IT experts and software designers in order to
and what will be- in relation to the reporting entity. solve on-the-job technological challenges.

Implication for accountants Be cyber-security conscious

Early accountants were awakened by new technologies As explained earlier, one of the challenges of IT adoption
that reshaped clients‟ demands and users‟ expectations, by accountants is the existence of cyber threats. Hence,
and as a result, many were forced to retirement (to pave accountants must become increasingly aware of this
way for the new generation “technology-driven” threat and how to ensure maximum data security. This is
accountants), while others were forced to embrace IT a very important responsibility, as accountants are now
knowledge in order to cope in the industry. This is custodians of sensitive information that must be proposed.
because as much as accountants cannot control the pace
of technological advancements, there is always a way
out. The implication of technology for accountants today Accountants must be trendy
and those who wish to be relevant in the future is that
accountants need to; Today‟s accountants need to be trendy technologically,
keeping touch with latest technological advancements
that affect their jobs. This is because staying on the job
Investment in IT knowledge and skills and being competitive requires accountants to do so. For
example, it is assumed that by 2020, audits may well be
Following the growth in technology and its capabilities, it real-time and as a result, accountants will be required to
has become evident that accounting and finance pull data in from business systems and sensors
knowledge and skills are not enough for the accountant embedded in everything (including from stock to livestock
 Imene and Imhanzenobe 59

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