Impact of digitalization on accounting: challenges and prospects

Artyukh Oksana
Doctor of Economics, professor of the Department of Accounting, Analysis and Audit, Odesa National University of Economics, Odesa, E-mail:Oksana_art_2017@ukr.net, ORCID ID: https://orcid.org/0000-0002-8845-8002

Kolosov Artem
Student, Odesa National University of Economics, Odesa, E-mail:lubovnikoaeva07@gmail.com, ORCID ID: https://orcid.org/0009-0005-2144-756X

Cite this article:

Artyukh O., Kolosov A. (2023) Impact of digitalization on accounting: challenges and prospects. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Vplyv tsyfrovizatsii na bukhhalterskyi oblik: vyklyky ta perspektyvy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 11-12 (312-313), pp. 44-50.

Abstract

The article proves that modern technological achievements in the field of digitization significantly affect the organization and management of accounting. The main goal of the work is to analyze the impact of digitalization on traditional accounting practices, to reveal the challenges and advantages of digitalization. To achieve the goal, the following was used: a combined approach, which involves both a comparative analysis of scientific sources and professional literature, as well as a study of the current practice of various types of business based on a case study; statistical analysis; survey of specialists. The application of these methods made it possible to prove that digitalization provides significant advantages for accounting, including increasing the efficiency, accuracy and transparency of accounting processes. With the help of digitization of accounting, specialists can redistribute their time and resources to activities with greater added value. Current practice shows that digitization provides better integration of information systems and a variety of the latest software products (QuickBooks, Sage, Xero, FreshBooks, Microsoft Dynamics 365, Zoho Books, Oracle NetSuite), the use of which depends on the size of the enterprise, the complexity of its financial operations, and integration needs and budget and other factors. It has also been proven that the introduction of digitization into the accounting process creates a number of problems, such as: the need for new skills and adaptation to changes in accounting standards. Such challenges necessitate changes in the accountant's professional level, requiring him to acquire new IT and analytical competencies, as well as new approaches to ethical requirements related to the confidentiality and security of accounting data. This requires continuing scientific research in a given direction.

Keywords

digitization, accounting, technological innovation, adaptation, digital change, accounting software, accounting standards.

JEL classification: М410; М480; М150; DOI: https://doi.org/10.32680/2409-9260-2023-11-12-312-313-44-50

UD classification: 339.3.657

References

1. Bardash, S. V. & Hrabchuk, I. L. (2021). Digital technologies in accounting: main opportunities and risks. Efektyvna ekonomika. 9. Retrieved from http://www.economy.nayka. com.ua /pdf/9_2021/20.pdf (accessed October 10, 2023). [In Ukrainian].
2. Karpenko, O. V. & Plikus, I. J. & Holovina D. V. (2018). The impact of digitization on the development of accounting. Materialy Mizhnarodnoi naukovo-praktychnoi internet-konferentsii [Materials of the International Scientific and Practical Internet Conference] Sotsial'no-ekonomichni ta pravovi chynnyky rozvytku natsional'noi ekonomiky Ukrainy: oblikovi, analitychni ta kontrol'ni aspekty v suchasnykh umovakh intehratsijnykh protsesiv [Socio-economic and legal factors of development of the national economy of Ukraine: accounting, analytical and control aspects in modern conditions of integration processes]. Poltava: PUET. Retrieved from https://essuir.sumdu. edu.ua/bitstreamdownload /123456789/70891/ 1/Plikus_Tsifrovoy_uchet.PDF (accessed October 10, 2023). [In Ukrainian].
3. Kohut, Yu. I. (2021). Tsyfrova transformatsiia ekonomiky ta problemy kiberbezpeky. Kyiv:Consulting company "SIDCON". [In Ukrainian].
4. Korol, S. Ya. & Klochko, A. O. (2020). Digital technologies in accounting and auditing. Derzhava ta rehiony, 1, 170-176. Retrieved from http://nbuv.gov.ua/UJRN/ drep_2020_1_31. (accessed October 10, 2023). [In Ukrainian].
5. Ratynskyi, V. V. (2021). Information technologies in accounting: prospects and problems. Ekonomika. Finansy. Pravo, 4(1), 17-20. Retrieved from http://efp.in.ua/uk/journal-item/297 (accessed October 10, 2023). [In Ukrainian].
6. Shevchuk, I. B. & Deputy, B. Ya. & Tarasenko, O. E. (2019). Digitization and its impact on the economy of Ukraine: advantages, challenges, threats and risks. Prychornomors'ki ekonomichni studii, 47(2), 173-177. Retrieved from http://bses.in.ua/journals/ 2019/47_2_2019/34.pdf (accessed October 10, 2023). [In Ukrainian].
7. Shyshkova, N. L. (2019). Perspectives of IT modernization of accounting: actualization of theory and practice. Economics Bulletin, 3, 146-159. [In Ukrainian].
8. Akbulut, D. & Kaya, I. (2018). Big data analytics in financial reporting and accounting. Pressacademia, 7, 256-259.
9. Allioui, H. & Mourdi, Y. (2023). Exploring the full potentials of IoT for better financial growth and stability: a comprehensive survey. Sensors, 19. Retrieved from https://www.mdpi. com/1424-8220/23/19/8015 (accessed October 10, 2023).
10. Berdiyeva, O. & Islam, M. & Saeedi, M. (2021). Artificial Intelligence in Accounting and Finance: Meta-Analysis. International Business Review, 3, 56-79.
11. Vagner, I. & Sarakhman, O. & Shurpenkova, R. (2023). Analysis of the development of cloud technologies in accounting. Technology Audit and Production Reserves, 5 (4(73), 21–26.