© 2019 |Published by Scholars Middle East Publishers, Dubai, United Arab Emirates 372
Saudi Journal of Business and Management Studies
Abbreviated Key Title: Saudi J Bus Manag Stud
ISSN 2415-6663 (Print) |ISSN 2415-6671 (Online)
Scholars Middle East Publishers, Dubai, United Arab Emirates
Journal homepage: http://scholarsmepub.com/sjbms/
Original Research Article
Impact of Automation on Accounting Profession and Employability: A
Qualitative Assessment from Lebanon
Hassan Rkein, Zeinab A. Issa, Farah J. Awada, Hussin J. Hejase
*
Faculty of Business Administration, Al Maaref University, Beirut, Lebanon
*Corresponding author: Hussin J. Hejase* | Received: 20.04.2019 | Accepted: 26.04.2019 | Published: 30.04.2019
DOI:10.21276/sjbms.2019.4.4.10
Abstract
Technology advancement is considered the most aggressive among business external forces. A fact that will impact
negatively numerous job categories, among these are accounting jobs. This paper aims to assess the impact of automation
on the profession of accounting by conducting a qualitative research using semi-structured interviews with a convenient
sample of employees, employers, instructors and students who were willing to participate and offer their insights.
However, a literature review is conducted exposing historical development of the accounting profession followed by
pinpointing what researchers have contended about the impact of automation. Findings of this research suggest that
respondents were aware of the fact that specific accounting jobs will disappear though new jobs may substitute the
aforementioned specially jobs that necessitate skills such as critical thinking and consultancy. Findings are used as
recommendations for management and policy makers in private and public institutions.
Keywords: Automation, accountancy, unemployment, Lebanon.
Copyright @ 2019: This is an open-access article distributed under the terms of the Creative Commons Attribution license which permits unrestricted
use, distribution, and reproduction in any medium for non-commercial use (NonCommercial, or CC-BY-NC) provided the original author and source
are credited.
INTRODUCTION
The new global economy brings with it
concerns related to the impact of automation on the job
market as it has become a central issue. Very recent
literature highlights that accounting is on the top of the
list of those jobs that are highly susceptible to
automation. According to Dennin [1], Accounting,
Bookkeeping and Payroll Clerks jobs are ranked second
from ten job categories among 70 million jobs that will
be lost by 2022. While it is always proposed that
technology develops mainly to shrink the use of labour
along with creating new opportunities at more strategic
and advanced levels, in reality however, technology
seems to be developing at a much faster speed than the
alternative anticipated job creation. As a result
unemployment rates continue to rise, and competencies
and the need for hybrid skills are becoming a must to
secure a job.
Since accounting has been over the past
decades impacted heavily when computers substituted
the functions of bookkeepers and cashiers to a large
extent, this paper raises awareness and sets an early
wake up call. It suggests the need for accounting
professional bodies and academic institutions to work
along with researchers to set strategies in order to
mitigate the side impact that automation will have on
accounting job market. This topic becomes significantly
crucial in a country like Lebanon as well as all other
third world countries, where governments (that are
assumed to work for the public interest) are often
regulated and captured by the industry, and eventually
they act in the industries‘ interest. Authors of this paper
draw on the capture theory to support their recent claim.
This issue becomes of greater concern after noting that
history proved that employers, managers, directors, and
shareholders, are mainly concerned with cutting down
on costs and increasing profitability. That is as asserted
by Watts and Zimmerman [2], the founders of the
Positive Accounting Theory, who state that people are
driven by self-interest towards wealth maximisation. No
one doubts that automation will aid in accomplishing
the employers, managers, directors, and shareholders‘
cost reduction target and eventually increase their profit
share.
While studying the factors behind the
continuously increasing high unemployment rates, there
will always continue to be disagreement about the
driving forces, nevertheless automation stands out.
Recent survey by the McKinsey Global institute [3],
asserted that 44% of the organisations that had managed
to reduce their employees as a result of the 2008
financial crisis did so through different means of
automation.
On the other hand, history also shows that the
adoption of technological innovation can act as a
powerful stimulus on the economy, employability, and