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From Clay Tablets to AI: The Evolution of Accounting

  • Writer: SIMAA
    SIMAA
  • 6 days ago
  • 7 min read

From Clay Tablets to AI: The Evolution of Accounting

How Did the Language of Accounting Begin?

The earliest accounting record can be dated back to Mesopotamian civilisations of over 7,000 years ago. The record keeping was done by etching into the clay tablets (Zoraya, 2024), to record detailed transactions involving the people's agricultural products (Investopedia, 2025), specifically to track debts and inventory. Accounting evolved further during the Roman Empire, where detailed transactions ranging from public funds to military supplies were recorded. Daily journals and cash books were adopted, hence supporting the administration of the vast empire and simplified the governance of large populations and economies. (Davisson, 2025)

During the 15th century, the description on double entry bookkeeping was first published in the Summa de arithmetica (Summary of Arithmetic, Geometry, Proportions, and Proportionality) by an Italian mathematician and Franciscan friar, Luca Pacioli (Davisson, 2025). Despite being only one of the sections in the textbook, it laid the foundation for understanding the principles of double entry bookkeeping and the systematic treatise on accounting. The systemised accounting practices fostered a culture of transparency and accountability, which had a significant impact on financial literacy, business practices and education. (Owens, 2025)


Figure 1: Summa de arithmetica textbook


When Did the First Accounting Tools Appear?

In the late 18th century, the rise of factories and machinery during the Industrial Revolution led to major advancements in accounting practices to increase efficiency in financial tracking and management, especially in a rapidly growing industrial economy. For instance, columnar accounting books were adopted. The segregation of accounts provided and enabled accountants to record and categorise transactions more efficiently. Another example would be the emergence of mechanised accounting systems, such as the comptometer, which aided accountants in performing financial calculations with reduced risk of human error and time-consuming processes. (Management, 2023)


Figure 2: Early compometer


Accounting played an important role in this era by aiding managers for decision-making and resource allocation through the financial information that was gathered and analysed. On top of that, the nature of business operations changed due to the transition to industrialisation. Accountants were thus expected to play a more strategic role in evaluating the financial information of the business operations, instead of solely recording and summarising it. (Management, 2023)


Accounting Today and Its Evolution Since the Industrial Revolution

The emergence of accounting software can be traced back as early as in the 1950s, where businesses started to adopt electronic data processing and such technology was designed for mainframe computers. Later on in the 1980s, accounting and spreadsheet software applications such as Quickbooks and Microsoft Excel were introduced, with the rise of personal computers. These aided developments in automation, data handling capacity and raising work efficiency. Also, accountants are able to perform complex financial analyses and reporting with the aid of these technologies. (Riches, 2024)


Figure 3: Accountant using Microsoft Excel


As technology advances rapidly in the 21st century, accounting processes have transitioned from manual recording to digitalisation. Technologies like Artificial Intelligence (AI), cloud computing, automation and machine learning are reshaping the accounting profession. Some examples of software consisting of these technologies include Quickbooks, Xero and Sage. (Ansah, 2024)

In Singapore’s accounting profession today, some of the most common fields include Bookkeeping, Auditing and Taxation (MySkillsFuture, 2025). Let’s take a look at their significant changes and trends one by one!

Bookkeeping

As accounting has been through centuries of evolution and refinement, the role of an accountant has also evolved past its initial goal of mere record keeping. In recent years, Singapore is being significantly reshaped by technology, and professionals in the field are shifting their focus towards strategic roles such as financial planning. This includes playing a more active role, such as in developing financial plans, analysing performance metrics and discovering potential improvements for business. Moreover, the emphasis on adoption of sustainability and ethical practices is growing in financial management. Professionals in this field need to stay updated on new frameworks and standards to ensure transparency and accountability in financial reporting. (LEE&HEW, 2024)

Thus, it is important for professionals in the bookkeeping field to adapt to the changing environment and stay informed of the trends, including technological advancements, regulatory changes and shifting business needs. By embracing new technologies and responding to emerging trends, professionals in this field can add value in the industry or organisations. (LEE&HEW, 2024)

Auditing

Auditing work used to be carried out manually, such as through manual examination and sampling of physical ledger books (Schobel, 2024). However, like many other fields in the industry, it is also undergoing a digital transformation from the traditional, manual processes. Today, various technologies are becoming increasingly common in audit work, including Data Analytics, AI, Cloud-Based Platforms and Blockchain. These aid auditors in analysing large volumes of transactions, automate repetitive tasks and provide them tamper-proof records that simplify audit verification. In addition to these technological advancements, Environmental, Social & Governance (ESG) auditing is increasing in demand, as sustainability has become a growing focus in Singapore and around the world (Corporate, 2025). Audit services have also expanded beyond financial reporting to include non-financial areas, such as risk management, cybersecurity and data analytics, driven by the complexity and interconnectivity of today’s business environment (TNPL, 2023).

Meanwhile, there are rising expectations on audit services from stakeholders, as it is no longer limited to financial verification. Insights into information like company ethics, sustainability and resilience are in demand from stakeholders. To meet these demands, audit firms are providing advisory services, as well as having more detailed reporting and enhanced transparency in audit processes (Corporate, 2025). Therefore, auditors today are increasingly expected to offer insights beyond financial compliance, contributing to strategic decision-making and risk management. Also, it is essential for auditors to embrace innovation, cultivate continuous learning and uphold a strong commitment to integrity and transparency, to adapt to the evolving audit landscape. (SingaporeBizBlog, 2025)

Taxation

Just like auditing work, taxation work used to be carried out manually as well. For instance, tax professionals would go through binders and stacks of documents (JDSUPRA, 2020) as paper-based systems were adopted before digital tools came into the picture (ATI, 2023). Nevertheless, Singapore’s taxation landscape today is undergoing rapid adoption of digital technologies. The emergence of various digital technologies like GenAI (EY Global, 2025), Tax Preparation and Compliance Software, and Data Analysis and Reporting Tools (Teal, 2025) is aiding tax professionals with work efficiency while handling large volumes of data and ensuring compliance. For example, GenAI achieves tax transparency and improves efficiency and effectiveness by automating the process of raw data collection, validating and cleansing the collected data before generating rich insights. (EY Global, 2025) Besides technological advancements, the growing focus on sustainability in Singapore has pushed green tax initiatives, such as implementation of Carbox Tax in 2019 (RSM, 2023) and Green Fuel Tax in 2026 (Gilliver, 2025).

On the other hand, the role of tax professionals is shifting towards a strategic advisory role, beyond routine tax compliance and preparation, and form-filling (Belisle, 2024). This includes performing analysis and exception handling, as the manual and labour-intensive tasks are already supported by the technology (WorkforceSingapore, 2025).


Raising Concerns of AI and the Future of Accounting

Although the rapid advancement of technologies helps us greatly in our work and daily life, it raises concern among Singaporeans for the fear of job displacement. Accounting is no exception too. This is because the industry is being reshaped, with technologies like AI replacing human labour in repetitive tasks. (Zalizan, 2025)

While certain tasks may be replaced by AI, accounting roles will definitely not be replaced by them. Instead, AI is helping with work efficiency and accuracy in repetitive tasks, allowing professionals to shift focus toward higher-value work. According to the study, accountants that used AI support more clients per week and finalise monthly statements 7.5 days faster than those using traditional methods. As such, less time is spent on routine work and more time can be devoted to business communication, quality assurance and client-facing advisory work. (Murray, 2025)

Despite the rise of technologies like AI, human expertise still plays an important role in various aspects. Firstly, technologies like AI lack human judgement and context, which are crucial when facing complicated situations. Although AI can signal potential issues, it is unable to interpret ethical grey areas and make value-based decisions, unlike humans. Secondly, strategic thinking and decision-making skills require the expertise of professionals with years of experience and strong business intuition. This expertise includes a deep understanding of organisational culture and politics, and the ability to navigate uncertainty with incomplete information. Lastly, AI is unable to replace humans in handling client relationships, as these require empathy and trust. Trust plays a key role in building lasting relationships with clients, extending beyond technical work to include care, loyalty and personal connection. (Hannan, 2025)


Conclusion:

From ancient times to today, accounting practices have continuously evolved, with major developments periodically reshaping the industry. Accounting today is moving priorities towards innovation and sustainability, as the environmental impacts are increasingly valued and analytical skills are in high demand in society. Although the emergence of technologies like AI are significantly impacting the profession, they are not replacing accountants. Instead, they are transforming how accountants work, redefining and expanding the focus of their roles. Therefore, to remain relevant in this evolving landscape, accountants and prospective accountants should embrace changes, stay informed about industry trends and upskill themselves when necessary.




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