Applying Large Language Models in Accounting: A Comparative Analysis of Different Methodologies and Off-the-Shelf Examples

Abstract

The emergence of Large Language Model (LLM) presents significant opportunities in accounting, including optimizing current processes, extracting new information, and updating accounting measurements. However, factors such as skill gaps, perceived complexity of integration, and cost constraints have limited its implementation in accounting. This study provides an overview of mainstream LLM utilization methods, including user interface and application programming interface, and introduces a novel approach via robotic process automation (RPA) integration. The advantages and limitations of each method are discussed, accompanied by a current analysis of the time, labor, and monetary costs involved in employing LLM for an accounting task. To facilitate practical applications, three off-the-shelf examples are provided. This study contributes to the literature and practice by summarizing and comparing LLM implementation methods, responding to the challenges raised by researchers and stakeholders, and bridging the gap between technology innovation and its practical application in accounting.

Keywords: ChatGPT, Robotic Process Automation (RPA), User interface (UI), Application programming interface (API), Pros and cons, Cost analysis, Large Language Model (LLM)

JEL Classification: M41, O14, O33, D61