The Development of Accounting from the Classical Period to the Digital Age

Abstract

The development of accounting from the classical period to the digital era shows a significant transformation influenced by technological advances and business efficiency needs. This study aims to analyze the evolution of the accounting profession from manual systems to the era of Artificial Intelligence (AI), Business Intelligence (BI), Big Data, and Cloud Computing using a qualitative literature review method. The results of the study show that technological transformation has accelerated the financial reporting process from weeks to near real-time, increased data processing capacity to millions of transactions, and reduced error rates through automation and system standardization. These changes have also shifted the cost structure from manual labor to a more efficient digital subscription-based investment model. Technology integration has enabled the accounting function to evolve from historical recording to predictive and recommendative analysis that supports strategic decision-making. However, fundamental accounting principles such as double-entry bookkeeping, internal control, and audit trails remain intact. The study also highlights implementation challenges such as data quality, organizational resistance, and algorithmic ethics. Overall, accounting in the digital age serves as a strategic information system that supports transparency, sustainability, and organizational competitiveness amid the Fourth Industrial Revolution.