This document provides a summary of the impacts of increasing automation and artificial intelligence on the accounting industry. It begins by outlining the concerns about how technology may replace certain accounting jobs in the short run while not being able to fully replace the profession in the long run of 50-100 years. The paper then discusses how technology is currently impacting young accounting students and professionals by requiring additional technical skills. While some efficiencies have been gained through technology, there is a threat that routine tasks may be automated or outsourced. Overall, the paper hypothesizes that technology will replace many but not all accounting jobs over the next 50-100 years based on current trends and expert opinions that view technology as a tool rather than a threat.

1. Running Head: A TALE OF TWO ACCOUNTS
A Tale of Two Accounts
Eric W. Taylor, Jr.
Purdue University

2. A TALE OF TWO ACCOUNTS 2
Abstract
This paper attempts to address a growing concern within the United States over the proliferation
of artificial intelligence and automated systems which have increasingly altered standard
business processes. The prevailing notion of maximizing productivity and eliminating
inefficiencies stands as both an immediate threat to professionals in all industries and resides as a
hindrance to the prosperity of the human race. While such a broad concern deserves the utmost
attention, it is appropriate to initially analyze a specific industry, such as the accounting field in
the short run to effectively construct a hypothesis for future outcomes. It is with thorough
research, objective analysis, and information derived from various professionals, that a better
understanding will be reached on the subject and that improvements will be made.

3. A TALE OF TWO ACCOUNTS 3
A Tale of Two Accounts
Charles Dickens once described the late eighteenth century as the best of times and the
worst of times. The verisimilitude of this statement describes the tumultuous era of the French
revolution, but can equally be applied to the twenty first century and the birth of a technological
revolution. In the modern age, the United States of America enjoys one of the highest standards
of living and GDP per capita than any other nation in the world. While social and political issues
continue to divide the nation, one element that unifies this collection of great states is the
prevailing mindset of constant improvement and the advancement towards a more promising
future. The society of the twenty first century has not only been forged by the hard work and
fortitude of this nation, but has primarily been influenced by the growth and development of
technology. The Accounting Industry represents but a fraction of the market that has
implemented technology in its daily processes. This will be the fundamental idea reiterated
throughout this paper and the basic point used in the discussion of other topics.
Problem/Statement
Technology has always resided as a basic element in the lives of human beings. When
referring to technology in the societies of past civilizations, it is crucial to define technology as a
method for improving a process or objective. Technology is not simply an electronic system or
an automated machine. While the discussion of Technology throughout this paper will mostly
center on the electronic format, it is essential to discuss Technology from a historical perspective
in order to gain a better understanding of the subject. The earliest forms of technology were not
computers or machines hardwired with coding, however can be found evident in some of the
earliest advancements of intelligent life forms. The construction of tools by Homo Habilis which
made completing difficult tasks easier represents one of the earliest forms of a technological

4. A TALE OF TWO ACCOUNTS 4
change. Furthermore, the invention of the printing press commonly symbolizes one of the
greatest technological inventions in the course of human history (Lerner, 2016).
In the example previously mentioned, a crucial point must be identified and discussed.
Prior to the invention of books, many individuals who even possessed the ability to read had to
derive their knowledge from scrolls made out of sheep skin that were located in monasteries.
Knowledge and unique ideas were very limited to those who indulged in such a rare luxury as
reading. Following the invention of books, ideas began to spread more rapidly than ever and
humans now possessed a more effective ability of communicating. The importance in referring to
technologies of the past is to highlight how technology has historically contributed to the human
race and the number of possibilities. By eliminating inefficiencies and constructing more
effective methods of accomplishing tasks, the human race benefited as a whole and thus
advanced to the next stage of improvement.
One of the main issues that human beings must evaluate as a collective species is the
threat level of a technological movement that is growing exponentially. As previously described,
technology up until this point has represented a step towards more efficiency and maximum
effectiveness. Technology in prior decades and centuries, have aided human beings in daily tasks
and have in fact augmented the capabilities of humans. A major concern that has recently been
expressed in a major show such as sixty minutes, is identifying the line between Technology
acting as an assistant to humans and technology actually completing certain processes on its
own. In economic terms, when does technology exceed the equilibrium of benefits and happiness
and becomes more of a liability to certain members of the population. This question precisely
captures the worry that many individuals are starting to express and is the main problem that will
be looked into for this research experiment.

5. A TALE OF TWO ACCOUNTS 5
Significance of the Problem
It is with the utmost relevance in discussion to the growth of technology, as to how the
world is changing and how humanity is being impacted. The very fact that millions of lives are
being affected by technology establishes one of the key arguments in evoking the urgency
needed to properly address this issue. Every time a human mind is subsequently affected by a
technological influence, society as a whole must conduct a comprehensive examination as to the
specific effects of such influence. Technology represents not simply a mild influence on the
development of society, such as a temporary increase of crime or drug use, but is applicable to
the long term development and prosperity of the human race.
With specific regard to the Accounting industry, many notable changes have already
started to occur in relations to the growth of technology. Incoming Accounting majors can
initially be analyzed as to the specific effects that technology is having on the industry. Ten to
twenty years ago, a typical characterization or stereotype existed about Accountants: Isolated,
socially introverted individuals who were proficient in math and who loved working with
numbers (Yu Hsin, Chang, & Chun Fu, 2015). Such a broad and outdated stereotype can no
longer be applied to Accountants in an age where the professional environment is rapidly
changing. The growth of complex programs such as expert systems and artificial intelligence are
not only a part of the modern age but will continue to be integrated into the lives of every
American in the coming decades (Brown, Baldwin-Morgan, & Sangster, 1995).
A more important issue that becomes apparent is the immediate and short term effects
that automation may have on human beings. The possibility of Artificial intelligence replacing a
human being may be comparable to a senior citizen being forced to retire. The senior citizen not
only loses a source of income, which may be problematic if retirement funds are insufficient, but

6. A TALE OF TWO ACCOUNTS 6
more importantly the individual loses a sense of purpose in life. Not too long after, they will
often die or become severely ill. Such a theme may be reiterated in cases of unemployment,
where people who have been laid off begin to experience depression and lack of morale. Mass
automation would simply equate to a significant decline in morale for the human race. The very
possibility that technology may negatively limit human beings in the professional environment
and in other sectors of life proves to be one of the greatest threats in the pursuit of prosperity and
proves to be one of the biggest challenges that humanity must face and overcome.
Hypothesis
It is with appropriate analysis upon the subject that a very accurate hypothesis can be
reached on the research question. The debilitating effect that technology is expected to have on
United States workers in the coming decades is one of the primary concerns in the
formulation/construction of this hypothesis. In any market or economy based situation, future
expectations play a significant role in how decisions are made today. Such reasoning has not
only functioned as a basis for many economic policies implemented throughout the history of
this country, but will subsequently be a basic element in the deliverance of an effective
hypothesis.
As is the case in many areas of applied statistics, the concept of a null hypothesis will be
utilized. While a question that evaluates the chances of accountants being replaced by technology
usually adopts a more qualitative approach, for the sake of future reference and ease of
understanding the final conclusion, a quantitative approach will be taken. With this entails the
possibility of an alternate hypothesis being developed towards the later part of the paper and
further explanations of type errors and levels of significance that may arise during the course of

7. A TALE OF TWO ACCOUNTS 7
the experiment. It is with the greatest intentions that a meaningful and highly accurate
experiment is conducted.
In better reference to the research question previously raised, technology in the short run
will initially be evaluated. More than ever, a society currently exists that is characterized by
increased automation and the development of complex programs that take expertise out of the
hands of professionals and places it into the hands of average consumers. Already, programs
such as QuickBooks and TaxWise Online are simplifying tasks commonly associated with the
Accounting Industry. In a broader perspective, organizations such as H&R block and TurboTax,
are standardizing many Accounting processes in a way that individuals who have not even
received training or education in the field, are quite capable of accomplishing many of the same
tasks that trained accountants can.
Technology proves to be an even greater hindrance to the Accounting Industry especially
when combined with threats that arise on a global spectrum. A program such as the H-1B visa
initiative exemplifies the eminence of a competitive strategy that primarily centers on cheap
labor, easy to obtain human capital, and the propaganda of maximizing profits by any means
necessary. This threat already undermines the success that many American accountants hope to
obtain, however tallied with the immeasurable challenges presented by the growth of technology,
the outlook for the Accounting industry appears to be more dismal than ever before.
To provide a more accurate assessment of the topic, the time reference for the hypothesis
will be narrowed down. The question is not whether the Accounting industry will be eradicated
with the growth of technology but more so when and how. The previous statement does not
necessarily imply or state that the Accounting Industry ever will be replaced by technology, but
in an attempt to avoid ambiguity in future expectations, a short to moderate long analysis will be

8. A TALE OF TWO ACCOUNTS 8
taken. It would be appropriate to conduct an analysis that spans a time period of perhaps fifty to
one hundred years. Will professionals in the Accounting industry be replaced by technology fifty
to one hundred years from now? The best answer to this question and the stated hypothesis for
the experiment is that it cannot rationally or logically be assumed that technology will have the
capability of replacing the accountant in the foreseeable future. The best hypothesis that can be
derived from data trends available to the public is that technology will most certainly replace and
automate a majority of the Accounting Profession but will not entirely master every component
of the profession in the fifty to one hundred year timeline. It is with a reasonable and objective
evaluation of the subject that the growing threats present in both domestic and international
frontiers and the immeasurable challenges presented with the exponential growth of technology
will leave the Accounting Industry as a dying profession and a sector of the workforce coupled
with high unemployment and a low opportunity for upward mobility.
Methodology
It is imperative to establish the critical reasoning behind either the rejection or support of
the Hypothesis later in the paper. While many exploratory documents utilize theoretical
reasoning based entirely on abstract principles and concepts, the following research takes a more
practical approach. Reasoning within this paper utilizes three concepts: Data and information
that is already available to the public, testimonies of professionals both within and outside of the
Accounting industry, and philosophical concepts that attempt to predict human behavior.
Methods for obtaining research were also entirely objective based and ignored subjective
reasoning and personal biases.
Research Design

9. A TALE OF TWO ACCOUNTS 9
Before a proper investigate campaign could even be conducted about the impact of
technology on the Accounting field in the future, a better understanding of the current impact had
to be initially analyzed. The question of whether technology is a hindrance to accountants in the
field today prevailed as one of the early questions that guided the research design. A meticulous
evaluation of the benefits associated with Technology and the detrimental effects of Technology
was essential in trying to construct an outlook of a future society that is only based on the events
of the present. The possibility of a completely automated society emerging is far less likely to
occur if the present society greatly values human accountants. In simpler terms, a negative
portrayal of the future may only occur if the present establishes such a negative viewpoint.
Similar to the description of the French revolution, the twenty first century with regard to
technology represents both a time of admirable change and a time of disastrous consequences.
Many of the negative side effects felt by increased technological growth are directed towards
young accountants and students pursuing a career in the industry. Those who are well
established within the industry such as CFO’s and corporate management are more resistant to
the changes in the sense that greater job security occurs the farther up you move in a company.
Accounting students are presented with immeasurable challenges in the twenty first century
because they must now learn additional skills in order to survive. This statement is directly
supported by the fact that many incoming freshman are unprepared for the technological
challenges presented within an Accounting curriculum (Yu Hsin, Chang, & Chun Fu, 2015). As
one expert states, “In this age of information and increasing use of technology, market
expectations for accounting graduates are changing rapidly. Training future accountants who are
fit for the technology-based work market is more challenging for academia than ever before,”
(Ahadiat, 2008).

10. A TALE OF TWO ACCOUNTS 10
The previous information is very alarming if one were to simply analyze the difficulty of
learning Accounting in its introductory phases. Many students become confused simply in
identifying an Account on the balance sheet as a debit or a credit. Completing an accurate journal
entry is another task that many individuals, not just students, have trouble with. There is also the
issue of avoiding transcription and transposition errors and not adding too many zeros to a
particular amount. Accounting requires fine attention to detail, common sense, and the ability to
think critically during challenging circumstances. The fact that young accountants must learn all
of these processes, interpret information, and now present this information via new technological
formats proves to be a very formidable goal. Technology simply represents yet another challenge
in trying to become proficient in the industry.
The current outlook of the Accounting Industry proves to be even more dismal when
approaching the subject from a more competitive standpoint. Many experts have already
concluded that based simply on the current rate of growth of technology, many standardized
process will be automated in the coming decades (Timm, 2008). Such expert states, “Routine
tasks can easily be replaced by software or outsourced to lower labor cost locations,” (Timm,
2008). This is especially alarming in the sense that outsourcing today typically consists of
shipping manufacturing and labor jobs overseas. Rarely does an American based company ship
an Accounting or Finance related job overseas to save money, and rarely does an employer pick
an automated system to accomplish a major accounting job instead of hiring a human being. The
concerns that arise from technological growth are constantly growing.
As one would like to believe, the detrimental effects of technology must be balanced out
by some positive benefits. This is certainly the case when looking at efficiency and maximizing
effectiveness. Already in some companies that utilize the ERP system, SAP, an increase of

11. A TALE OF TWO ACCOUNTS 11
efficiency and effectiveness may clearly be demonstrated. SAP has the capability of three way
watching the procurement process in an attempt to make the jobs of accountants easier. Other
examples have also been documented in which bottlenecks are quickly identified and eliminated
to quicken the pace of common business processes (DeFelice, 2011). The ability for an
accountant to accomplish a task in an accurate and timely fashion has a direct relationship with
the level of technology that is being used.
When conducting interviews with professionals both inside and outside of the accounting
industry, a common theme resonated in all of their responses: a positive viewpoint on the effects
of technology in the future. One of the most notable answers that came from a professional
within the Accounting Industry is that technology, at least from his perspective, is not viewed as
a threat to what he and his co-workers could accomplish but is instead a vital tool that leads to
improved Accounting services. He highlighted the point that technology has only augmented the
proficiency of accountants and raises questions and concerns that accountants without
technology would not have identified. Another professional outside of the accounting industry,
verified the fact that although systems such as SAP are increasingly automating standard
business processes, the jobs of accountants are becoming easier and allow greater time to
complete more difficult processes. He emphasized his professional opinion that employment
within the Accounting Industry will be very minimal in response to technology. Such positive
statements from adroit and seasoned professionals elicits a more optimistic viewpoint on the
subject.
While the growth of technology is an inevitable change for society, the way in which
Accounting professionals respond is imperative to the longevity of the industry. As previously
established, many Accounting professionals today adopt a more optimistic opinion of

12. A TALE OF TWO ACCOUNTS 12
Technology and how it is impacting their jobs. The negativity that is associated with
technological growth is more so a fear for the future than a fear of current employment
conditions. In proper evaluation of any professional service, the concepts of supply and demand
must be utilized. As one expert states, “The function of Accounting is to give financial
expression to business facts” (Zebley Jr, 1956). This definition is an accurate representation of
the supply of the Accounting field and to some extent depicts the Accounting field as a timeless
industry. As long as businesses exist in America, then some Accounting process must
subsequently occur. The only issue is who will fulfilling the demand for such a valued service:
Technology or human beings?
Every business in the history of Capitalism has started on the premise of fulfilling a
demand. Technology as identified in many areas of this paper has already functioned as a
supplier of services that is demanded by this nation. Many of these services have been routine
and basic in nature and subsequently have no impact on the complex components of the
corporation or the economy as a whole. This is crucial in understanding how humans may still
have an impact on the Accounting Industry in the current decades.
In the wake of technology impacting the execution of basic and routine services within
the Accounting Industry, humans still possess the ability to complete more complicated tasks.
Even in better reference to the tasks that technology is capable of completing, a human element
is still needed: ethical analysis. As discussed with one professional who has had a life-time of
experience in the political science department, a program or automated system is not instilled
with the same mental capacity that drives ethical behavior in humans (Lerner, 2016). Social
conditions, religious beliefs and various other factors lead humans to behave ethically and to
have a genuine concern about the well-being of others. Technology in comparison, is entirely

13. A TALE OF TWO ACCOUNTS 13
objective based and functions off of coding or in simpler terms a series of numbers and letters
that produce a desired outcome. To a very basic extent, Technology can be programed to follow
the laws of the land but is harder to be instilled it with a rationalizing process that leads to unique
and dynamic ethical behavior. It is also important to mention that Computers do not base
reasoning off of ethical behavior but instead primarily concerns itself with completing a task,
whether that task may be ethical or unethical.
An appropriate example is to reference IBM’s expert system, Watson. Watson can easily
process thousands of books which subsequently leads to a greater array of knowledge. IBM even
went as far as to teach Watson the English language and to express its ideas in a constructive
manner. Such technology resides as a huge threat however is still largely in testing and will
probably not be a mainstream daily product that the American people will use for quite some
time. There also arises the concept of humanity and how it will thrive in changing and
threatening circumstances. If a person desired a particular service, and they had two choices: An
automated or expert system and an actual human being, it can theoretically be concluded based
on philosophical reasoning that such individual would chose the human being. Despite that fact
that the automated system can process more information quicker, as long as the human being is
qualified for the position then he/she resides as a viable option for completing a professional
service. There is also the underlying and timeless cognitive bias, that people many times without
even realizing it associate themselves with people that resemble their appearance, beliefs, and
outlook on life. Such may be the case when looking at artificial intelligence. A human is more
inclined to pick another human for a service not simply because they belong to the same species
but also because of the fact that the human will have a greater regard to ensure the prosperity of
his/her client more so than the Artificial intelligence.

14. A TALE OF TWO ACCOUNTS 14
The hypothetical situation presented above only depicts an extreme situation. Anything
less will still leave American accountants an opportunity to thrive and to pursue employment. In
order to combat the growth of technology, accountants must convert the pernicious attributes of
the situation into an advantage. Increased automation creates an added business opportunity in
the sense of presenting and utilizing data not only in an effective method to accomplish a
business process but also to make sure that it is ethical and serves the best wishes of society.
Making sure that technology does not function improperly as its own separate entity must be a
desired service in the future. Technology should only thrive in accordance with human input and
checks and balances.
Educational opportunities may further be enhanced to combat the threats of technology.
As one expert states, “Accounting Education has been on the decline for years despite the high
demand for careers in Accounting” (Buckhaults & Fisher, 2011). In any occupation that is
becoming more competitive whether domestically, internationally, human versus human, or
human versus technology, the only path to success is education. Technology, particularly expert
systems and artificial intelligence, are only going to become more prevalent and standardized in
the global environment (Brown & Baldwin, 1995). If competition is increasing and growing
stronger, then the only way to survive is to improve proficiency in the industry and to augment
the skills necessary to thrive in the coming decades. Such a vision is not only imperative but
highly realistic in how humans can improve in the professional environment.
Conclusion
Despite the challenges that currently appear on the horizon of the twenty first century, a
future filled with hope, prosperity, and growth still lies ahead. The accounting industry will not
only continue to be a high-demand profession in the coming decades, but will be a source for

15. A TALE OF TWO ACCOUNTS 15
new and bright minds as current CPA’s retire over the next fifteen years. Similar to historical
calamities such as the Ice Age, Black Plague, and turmoil of the 1940’s, humanity must earnestly
devise a plan in order to remain competitive and to see the light of a brighter future. The
hypothesis for this experiment may appropriately be supported in the sense that Technology will
certainly continue to advance in an ever more threatening way, however not in a manner that will
entirely eradicate the possibility of success for the human accountant.
Despite certain biases exhibited throughout the course of this experiment, what is certain
is that greater efforts must be taken to ensure the possibility of success for those entering the
Accounting industry. There will certainly be challenges in the future, however there will equally
be matched opportunities for growth and the advancement towards new possibilities. It is with
the greatest hope and optimism of the future, that Americans, despite growing threats, will
experience an era of prosperity and success unlike anything in the history of this nation. As
President Ronald Reagan once stated, “There are no great limits to growth because there are no
limits of human intelligence, imagination, and wonder.” Humans will always arrive to the distant
shores of hope and prosperity as long as the obstacles of today are surmounted and the resiliency
of the mind is unyielding.

16. A TALE OF TWO ACCOUNTS 16
Works Cited
Ahadiat, N. (2008). Technologies Used in Accounting Education: A Study of Frequency of Use
Among Faculty. Journal Of Education For Business, 83(3), 123-134.
Brown, C. E., Baldwin-morgan, A. A., & Sangster, A. (1995). Expert systems in accounting
education--a literature guide. Accounting Education, 4(3), 283.
Buckhaults, J., & Fisher, D. (2011). Trends in Accounting Education: Decreasing Accounting
Anxiety and Promoting New Methods. Journal Of Education For Business, 86(1), 31-35.
doi:10.1080/08832321003720692
DeFelice, A. (2011). Survey Highlights: Emerging Tools for Firms of All Sizes. Journal Of
Accountancy, 211(4), 28-32.
Lerner, Saul. Personal Interview. 17 October 2016.
Timm, J. A. (2008). The Global Vision and Local Focus of Accounting Skills in the 21st
Century. Journal For Global Business Education, 829-40.
Yu Hsin, H., Chang, R. I., & Chun Fu, L. (2015). Survey of software literacy, behavior and
personal traits of freshmen accounting majors. British Journal Of Educational
Technology, 46(5), 1064-1069. doi:10.1111/bjet.12333
Zebley Jr., J. H. (1956). CHALLENGES TO THE ACCOUNTING PROFESSION. Accounting
Review, 31(2), 173.