Operational risk of accounting digitalization

Abstract

Automation of accounting is a trend which requires deep research to mitigate possible risks and to make legal background for standardization. On the real sample of 10 SMEs from Slovakia, we have investigated possibilities of implementation of automatic processing of received invoices including automatic AI solutions capable to withdraw relevant data from an invoice and import withdrawn data into accounting software for further processing. There are several available solutions capable to perform the task. By evaluation of possibilities for small SMEs we came to the conclusion that such solutions are possible and may be viable even for SMEs. As automation of processing received invoices may be viable for SMEs, it can become an industry standard. This research also shows that in Slovakia current accounting act prevents implementation of accounting automation based on AI due to not considering possible error rate caused by such automation.