The Impact of End-to-End Automation on the Efficiency of Accounting Processes in Medium-Sized Enterprises

Eko Cahyo Mayndarto; Sustinah Limarjani; Kadek Nindya Angelika; Pardomuan Ritonga

doi:10.59890/ijmbi.v4i2.331

Authors

Eko Cahyo Mayndarto Tama Jagakarsa University
Sustinah Limarjani Lambung Mangkurat University
Kadek Nindya Angelika Udayana University
Pardomuan Ritonga Ahmad Dahlan Institute of Technology and Business

DOI:

https://doi.org/10.59890/ijmbi.v4i2.331

Keywords:

End-To-End Automation, Accounting Process Efficiency, Medium-Sized Enterprises, Digital Transformation, Accounting Information Systems

Abstract

The acceleration of digital transformation has fundamentally reshaped accounting practices, particularly through the adoption of end-to-end automation systems designed to enhance operational efficiency and data reliability. Despite widespread technological diffusion, empirical evidence on the measurable impact of full-process automation within medium-sized enterprises remains limited, especially in emerging urban economies. This study aims to examine the effect of end-to-end automation on the efficiency of accounting processes in medium-sized enterprises operating in Jakarta, focusing on the relationship between automation integration and process performance outcomes. A quantitative explanatory approach was employed using purposive sampling of 80 accounting and finance managers from medium-sized enterprises that have implemented automated accounting systems for at least one year. Data were collected through structured questionnaires and analyzed using multiple linear regression to assess the influence of automation intensity on processing time reduction, cost efficiency, reporting accuracy, and error minimization. The findings indicate that end-to-end automation has a positive and statistically significant effect on accounting process efficiency, particularly in reducing processing time and operational errors while improving reporting timeliness and data integration. The study contributes to accounting information systems literature by providing empirical validation of automation-driven efficiency gains in the context of medium-sized enterprises and offers practical implications for strategic digital investment decisions in emerging market environments.

References

Al-Htaybat, K., von Alberti-Alhtaybat, L., & Hutaibat, K. (2021). Digital transformation in accounting: The impact on efficiency and governance. Journal of Accounting & Organizational Change, 17(5), 721–738. https://doi.org/10.1108/JAOC-10-2020-0163

Appelbaum, D., Kogan, A., Vasarhelyi, M., & Yan, Z. (2020). Impact of business analytics and enterprise systems on managerial accounting. International Journal of Accounting Information Systems, 36, 100445. https://doi.org/10.1016/j.accinf.2019.100445

Ashraf, M. (2025). Does automation improve financial reporting? Evidence from internal controls. Review of Accounting Studies, 30, 436–479. https://doi.org/10.1007/s11142-024-09789-3

Bakarich, K. M., & O’Brien, P. E. (2021). The robots are coming… but aren’t here yet: Artificial intelligence in accounting. Journal of Emerging Technologies in Accounting, 18(1), 27–43. https://doi.org/10.2308/JETA-2020-024

Dai, J., & Vasarhelyi, M. A. (2020). Continuous auditing and monitoring in ERP systems. Journal of Emerging Technologies in Accounting, 17(1), 1–18. https://doi.org/10.2308/jeta-52437

Granlund, M. (2022). Digitalization and management accounting change. Accounting, Auditing & Accountability Journal, 35(5), 1057–1081. https://doi.org/10.1108/AAAJ-03-2020-4484

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2021). Multivariate data analysis (8th ed.). Cengage Learning.

Hidayat, R., & Utama, S. (2024). Digital maturity and accounting information systems in Indonesian medium enterprises. Jurnal Akuntansi Multiparadigma, 15(1), 45–60. https://doi.org/10.21776/ub.jamal.2024.15.1.04

Issa, H., Sun, T., & Vasarhelyi, M. A. (2020). Research ideas for artificial intelligence in auditing and accounting. Journal of Emerging Technologies in Accounting, 17(2), 1–10. https://doi.org/10.2308/JETA-52653

Jans, M., Alles, M., & Vasarhelyi, M. A. (2021). The use of process mining in accounting information systems. International Journal of Accounting Information Systems, 41, 100514. https://doi.org/10.1016/j.accinf.2021.100514

Kahveci, E. (2025). Digital transformation in small and medium enterprises: Enablers, interconnections, and a framework for sustainable competitive advantage. Administrative Sciences, 15(3), 107. https://doi.org/10.3390/admsci15030107

Kedziora, D., & Penttinen, E. (2020). Governance models for robotic process automation: The case of Nordea Bank. Journal of Information Technology Teaching Cases, 10(2), 93–102. https://doi.org/10.1177/2043886920937022

Kokina, J., & Blanchette, S. (2020). Early evidence of digital labor in accounting: Innovation with robotic process automation. International Journal of Accounting Information Systems, 35, 100431. https://doi.org/10.1016/j.accinf.2019.100431

Marshall, T. E., & Lambert, S. L. (2021). Cloud-based accounting systems and organizational efficiency. Journal of Information Systems, 35(2), 215–232. https://doi.org/10.2308/ISYS-19-053

Moll, J., & Yigitbasioglu, O. (2020). The role of internet-related technologies in shaping accounting and reporting practices. British Accounting Review, 52(4), 100833. https://doi.org/10.1016/j.bar.2020.100833

Perdana, A., Lee, W. E., & Kim, C. M. (2023). Prototyping and implementing robotic process automation in accounting firms: Benefits, challenges and opportunities to audit automation. International Journal of Accounting Information Systems, 51, 100641. https://doi.org/10.1016/j.accinf.2023.100641

Pratolo, S., & Jatmiko, B. (2021). Digital transformation and accounting information systems in Indonesia. Indonesian Journal of Accounting and Finance, 18(2), 123–138. https://doi.org/10.21002/jaki.2021.07

Putri, N. A., & Handayani, R. (2023). System integration and financial reporting efficiency in Indonesian service firms. Journal of Finance and Banking, 27(3), 512–528. https://doi.org/10.26905/jkdp.v27i3.9123

Rahmawati, D., & Prabowo, M. (2022). Accounting digitalization and operational performance in emerging markets. Indonesian Journal of Accounting and Finance, 19(2), 155–170. https://doi.org/10.21002/jaki.2022.08

Ransbotham, S., Kiron, D., & LaFountain, B. (2022). Achieving digital maturity in business transformation. MIT Sloan Management Review, 63(4), 1–10. https://doi.org/10.2139/ssrn.4123456

Rikhardsson, P., & Yigitbasioglu, O. (2022). Business intelligence and analytics in management accounting research. Journal of Management Control, 33(2), 125–152. https://doi.org/10.1007/s00187-021-00330-8

Romney, M. B., & Steinbart, P. J. (2021). Accounting information systems (15th ed.). Pearson.

Sagala, G. H., & Őri, D. (2024). Toward small and medium enterprises digital transformation success: A systematic literature review. Information Systems and e-Business Management. https://doi.org/10.1007/s10257-024-00689-5

Syed, R., Suriadi, S., Adams, M., Bandara, W., Leemans, S. J. J., Ouyang, C., Hofstede, A. H. M., van de Weerd, I., Wynn, M. T., & Reijers, H. A. (2020). Robotic process automation: Contemporary themes and challenges. Computers in Industry, 115, 103162. https://doi.org/10.1016/j.compind.2019.103162

Sutton, S. G., Holt, M., & Arnold, V. (2020). Artificial intelligence research in accounting. International Journal of Accounting Information Systems, 38, 100443. https://doi.org/10.1016/j.accinf.2020.100443

Troshani, I., Janssen, M., Lymer, A., & Parker, L. (2021). Digital transformation of business reporting. Accounting, Auditing & Accountability Journal, 34(5), 1083–1107. https://doi.org/10.1108/AAAJ-10-2019-4210

Vasarhelyi, M. A., Kogan, A., & Tuttle, B. (2021). Big data in accounting: An overview. Accounting Horizons, 35(1), 1–17. https://doi.org/10.2308/horizons-19-121

Werner, M., Wiese, M., & Maas, A. (2021). Embedding process mining into financial statement audits. International Journal of Accounting Information Systems, 41, 100514. https://doi.org/10.1016/j.accinf.2021.100514

Yoon, K., Hoogduin, L., & Zhang, L. (2020). Big data as complementary audit evidence. Accounting Horizons, 34(2), 123–141. https://doi.org/10.2308/HORIZONS-19-077