Using Artificial Intelligence in Accounting Information

Artificial Intelligence
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Artificial Intelligence (AI)
Fordham and Hamilton researched themed their research around accounting information system in 2019. According to the findings, a significant number of small scale businesses did not have a real integrated general-purpose accounting information system. Instead, they used industry-specific software made for a specific purpose. Also, 35.6% of the sample population of 578 people did not apply computers in running their businesses (Fordham & Hamilton, 2019). These included handwritten checkbooks, inventory control systems, check registers, manual purchasing orders, and handwritten sales tickets. There was an urgent need for mass education on the incoming advantages of technology incorporated into daily operations.
Most small-scale business owners do not adopt computer-based accounting systems for various reasons, including the intensive effort to invest in the business owner, employees, and expatriates consultants' training and learning process. Some business owners also fear the continuous upgrade of the hardware and software, which will become a constant expenditure. Others do not trust their abilities to learn and apply computer technology in the business's daily operation (Fordham & Hamilton, 2019). In some instances, there is a fear of viruses and malfunctions that may distort or lead to complete business records loss. Therefore, most businesses opt for known manual methods to maintain their business records for fear of risk associated with technology adoption. Simultaneously, the cost of hardware and the expected rate of return on the investment discourages some.
None of the 578 businesses applied the concept of computer technology qualifying for classification under classic accounting processes. In most cases, the companies did not have any computer-based debit or credit, receivables management, payables scheduling, or managerial reporting using the computer (Fordham & Hamilton, 2019). Mostly, the companies lacked a general journal, ledger, and valid debit and credit entries. Also, in more than 50% of the sampled companies, both the business owner and employees had insufficient knowledge of accounting principles. Therefore, to implement information technology in a small business operation, there is a need for civic education to change the mindset on adopting the information technology in the small scale business's essential functions.
From the research, most of the businesses that used computerized applications installed industry-specific software. For example, out of the 508, 464 used software designed exclusively for their business line (Fordham & Hamilton, 2019). For instance, soap manufacturing industries installed software for the specific processes involved in soap processing. Hence, the software fundamentally tended towards the operational aspects. Mostly the business people referred to the software system as a business' information system.
Additional Reasons why small Business Owners are not Using AIS in thei...