Exploring the automation of business processes and business successes in accounting firms of South Africa

Abstract

This study explores the relationship between business process automation and business success in accounting firms in South Africa. In manufacturing industries, business success is related to the extent to which business processes are automated. Automation of business processes in accounting firms has progressed slower than in industries such as manufacturing. Consequently, this leads us to question the nature of the relationship between business process automation and business success among accounting firms. Therefore, this study explores the nature of the relationship between the automation of business processes and business success among accounting firms in South Africa. The study adopted the mixed-method approach. An explanatory sequential design was used. The study first collected quantitative data and then gathered qualitative data to verify and authenticate the quantitative data. Qualitative data was collected using semi-structured interviews, whilst quantitative data was collected using self-administered questionnaires based on a five-point Likert scale rating. The qualitative data was analysed using the thematic approach, while the quantitative data was analysed using descriptive statistics. The study revealed several findings from the empirical data. Automation results in efficiency, lower operating costs, higher profits, satisfied clients and an enhanced capacity to service more and more prominent clients. These factors may lead to the success of accounting firms. The study also found that automation can be deployed in business processes like payroll processing, processing and capturing accounting transactions, preparing financial statements and auditing. The study also revealed that employee consultation is needed when introducing automation and that employees need information technology skills to adapt to automated environments. The study found that data security may be compromised in automated environments, and automation may be costly. The study recommends that accounting firms in South Africa implement automation in their business processes. Automating accounting firms' business processes helps them achieve efficiency, lower operating costs, increase profits, satisfy their clients and enhance their capacity to serve more prominent clients, eventually leading to their success. The study recommends that accounting firms automate payroll processing, processing and capturing accounting transactions, preparing financial statements and auditing. Accounting firms in South Africa are recommended to upskill and reskill their employees with information technology skills to work with automated systems. The study recommends that accounting firms implement cybersecurity measures to safeguard data and information processed by automated systems. Finally, it is recommended that

accounting firms in South Africa should perform a cost-benefit analysis before implementing automated systems to evaluate whether automating business will result in a profit or not.