Digitalization and the Challenges for the Accounting Profession

10 Pages Posted: 11 Dec 2019

See all articles by Danimir Gulin

Danimir Gulin

University of Zagreb - Faculty of Economics & Business

Mirjana Hladika

University of Zagreb - Faculty of Economics & Business

Ivana Valenta

University of Zagreb - Faculty of Economics & Business

Date Written: September 12, 2019

Abstract

Accounting profession is traditional profession and accounting rules and principles have been established and are the same for many years. However, globalization of business, stronger regulations and numerous technological solutions and innovations are not bypassing the accounting profession either. Challenges for the accounting profession are reflected in the need for rapid adaptation and transformation of business practice and business processes without abandoning away from basic accounting rules and principles. The aim of this paper is to analyze and systematize the key challenges that digitalization brings for the accounting profession. Research is based on the review of relevant and available professional and academic literature. The results are showing that accounting profession is faced with numerous challenges in the era of digitalization. Key challenges could be systematized in following: the use of big data in accounting and reporting, cloud computing and continuous accounting, artificial intelligence and blockchain technology. The conclusion of this research is that changes in technology and digitalization will have a significant impact on the accounting profession in the coming period. Changes are moving toward reporting on a daily basis, difference on the way of preparing business and strategic plans, implementation of digital wallet and on-line accounting as well as outsourcing of accounting in distant countries. Education system is going to change in circumstances of growing digitalization of business. Also, users of accounting information in digital era are changing; they want accounting information right away when a business event occurs, not with time lag. Those changes will influence on the way accountants carry out their job, it will be necessary the knowledge of new skills especially in engineering, and, finally, that will lead to new types of the accounting professionals.

Keywords: italization, big data and reporting, cloud computing, artificial intelligence, accounting profession, accountants’ skills

JEL Classification: M40, M41, M49

Suggested Citation

Gulin, Danimir and Hladika, Mirjana and Valenta, Ivana, Digitalization and the Challenges for the Accounting Profession (September 12, 2019). 2019 ENTRENOVA Conference Proceedings, Available at SSRN: https://ssrn.com/abstract=3492237 or http://dx.doi.org/10.2139/ssrn.3492237

Danimir Gulin (Contact Author)

University of Zagreb - Faculty of Economics & Business ( email )

Trg J. F. Kennedyja 6
Zagreb, City of Zagreb 10000
Croatia

Mirjana Hladika

University of Zagreb - Faculty of Economics & Business ( email )

Trg J. F. Kennedyja 6
Zagreb, City of Zagreb 10000
Croatia

Ivana Valenta

University of Zagreb - Faculty of Economics & Business ( email )

Trg J. F. Kennedyja 6
Zagreb, City of Zagreb 10000
Croatia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
337
Abstract Views
888
rank
97,506
PlumX Metrics