Impact of digitalization on accounting in the transition to Industry 4.0

Abstract

The article analyzes the transformation processes in accounting. The aim of the research is to investigate the influence of digital technologies on accounting in the context of Industry 4.0. It is emphasized that modern society is on the way to significant changes in the digital sphere. It was figured out that there are benefits and drawbacks of the digitalization of accounting. The article reveals a variety of digital technologies used in modern accounting (artificial intelligence, blockchain, and cloud technologies). SWOT-analysis of accounting digitalization was performed. It has been studied that in the accounting field, artificial intelligence has great opportunities. It was discussed that the key benefit is that it is capable of processing large quantities of data in the shortest possible period. In the field of accounting, the idea of «blockchain» has become increasingly common. The benefits and drawbacks of blockchain have been revealed. It was mentioned that blockchain has a number of properties that are important for accounting work. The benefits of using cloud technology were determined, they include immediate access, regardless of time and place, to cloud information; saving financial, labor, and capital resources. The drawbacks include the need for a permanent connection to the Internet and the vulnerability of viruses. Recommendations have been provided to businesses and governments about how to facilitate digitalized accounting and address future problems related to it. The key point in different recommendations is to encourage the organizations to use digital technologies by different incentives (both financial and non-financial ones). The article emphasizes that it is important for the enterprises to develop a strategy for the company’s digitalization (including the digitalization of accounting), re-teach accountants to use special tools to work for them, and to buy high-privacy security and virus protection. It is also stated that the government needs to reduce taxes or to set up a preferential tax regime for companies with digitalized accounting and to encourage the companies to use a digitalized accounting by subsidies and other incentives. Following the results, the prospects for future research were outlined.