Digitalization of control and accounting processes of agricultural enterprises: Risk assessment and management
The digitalization of control and accounting processes is a requirement of the present day due to the wide opportunities to increase competitiveness and efficiency of activities that it provides to enterprises of any industry. The aim of the study was to analyse the effectiveness of digitalization of control and accounting processes to ensure the achievement of the main objectives of agricultural enterprises. The present study used the method of statistical analysis, descriptive and comparative methods, as well as SWOT and PEST-analysis. The study found that the market for software products for agricultural enterprises continues to grow, with a growth rate of 13.5% per year. It was noted that agricultural enterprises can gain significant advantages with the use of new software products, which will increase the speed, accuracy, transparency, and accessibility of control and accounting processes. The paper examined the capabilities of Enterprise Resource Planning systems, which have a wide range of functionality and mostly meet the needs of large agricultural enterprises. The study also covered the consideration of alternative control and accounting tools that may be more suitable for small and medium-sized enterprises due to their simplicity, targeted focus and low implementation costs. Through an assessment of Ukraine’s agricultural sector, the paper proves the importance of agriculture for the state, which explains the need for close attention to digitalization processes in the sector. BAS AGRO. ERP is considered as an effective system for implementing control and accounting at national agricultural enterprises. As a result of the study, the opportunities and threats, weaknesses and strengths of the digitalization of control and accounting processes in general were noted. It also identified political, economic, social and technological factors that influence these processes in Ukraine
[1] Agostino, D., Saliterer, I., & Steccolini, I. (2022). Digitalization, accounting and accountability: A literature review and reflections on future research in public services. Financial Accountability & Management, 38(2), 152-176. doi: 10.1111/faam.12301.
[2] Agriculture, forestry, and fishing, value added (% of GDP). (n.d.). Retrieved from https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS.
[3] Agriculture, forestry, and fishing, value added (current US$). (n.d.). Retrieved from https://data.worldbank.org/indicator/NV.AGR.TOTL.CD.
[4] Alam, M.S., & Hossain, D.M. (2021). Management accounting in the era of digitalization. The Journal of Industrial Distribution & Business, 12(11), 1-8. doi: 10.13106/jidb.2021.vol12.no11.1.
[5] Alkan, B.Ş. (2022). How blockchain and artificial intelligence will effect the cloud-based accounting information systems? In S.B. Kahyaoğlu (Ed.), The impact of artificial intelligence on governance, economics and finance (pp. 107-119). Singapore: Springer. doi: 10.1007/978-981-16-8997-0_6.
[6] Bellucci, M., Cesa Bianchi, D., & Manetti, G. (2022). Blockchain in accounting practice and research: Systematic literature review. Meditari Accountancy Research, 30(7), 121-146. doi: 10.1108/MEDAR-10-2021-1477.
[7] Bergmann, M., Brück, C., Knauer, T., & Schwering, A. (2020). Digitization of the budgeting process: Determinants of the use of business analytics and its effect on satisfaction with the budgeting process. Journal of Management Control, 31(1), 25-54. doi: 10.1007/s00187-019-00291-y.
[8] Bradford, M., Henderson, D., Baxter, R.J., & Navarro, P. (2020). Using generalized audit software to detect material misstatements, control deficiencies and fraud: How financial and IT auditors perceive net audit benefits. Managerial Auditing Journal, 35(4), 521-547. doi: 10.1108/MAJ-05-2019-2277.
[9] Capterra. (n.d.). Retrieved from https://www.capterra.com/.
[10] Cho, O.H. (2024). Analysis of the impact of artificial intelligence applications on the development of accounting industry. Nanotechnology Perceptions, 20(1), 74-83. doi: 10.62441/nano-ntp.v20iS1.7.
[11] Damerji, H., & Salimi, A. (2021). Mediating effect of use perceptions on technology readiness and adoption of artificial intelligence in accounting. Accounting Education, 30(2), 107-130. doi: 10.1080/09639284.2021.1872035.
[12] Desplebin, O., Lux, G., & Petit, N. (2021). To be or not to be: Blockchain and the future of accounting and auditing. Accounting Perspectives, 20(4), 743-769. doi: 10.1111/1911-3838.12265.
[13] Dovgal, O., Potryvaieva, N., Bilichenko, O., Kuzoma, V., & Borko, T. (2024). Agricultural sector circular economy development: Agroecological approach. Ekonomika APK, 31(4), 10-22. doi: 10.32317/ekon.apk/4.2024.10.
[14] Dubinina, M., Syrtseva, S., Cheban, Y., Dubinin, V., Luhova, O., & Khomiak, N. (2022). Organization of accounting in the countries of the European Union: Current problems and prospects of improvement. Financial and Credit Activity: Problems of Theory and Practice, 2(43), 271-277. doi: 10.55643/fcaptp.2.43.2022.3759.
[15] Estep, C., Griffith, E.E., & MacKenzie, N.L. (2024). How do financial executives respond to the use of artificial intelligence in financial reporting and auditing? Review of Accounting Studies, 29(3), 2798-2831. doi: 10.1007/s11142-023-09771-y.
[16] Garanina, T., Ranta, M., & Dumay, J. (2022). Blockchain in accounting research: Current trends and emerging topics. Accounting, Auditing & Accountability Journal, 35(7), 1507-1533. doi: 10.1108/AAAJ-10-2020-4991.
[17] Gherman, M.B., Molociniuc, M.H., & Grosu, V. (2021). Digitalization of accounting – Trends and perspectives. Journal of Information Systems & Operations Management, 15(1), 104-113.
[18] Goi, V., Ahieieva, I., Mamonov, K., Pavliuk, S., & Dligach, A. (2023). The impact of digital technologies on the companies’ strategic management. Economic Affairs, 68(2), 1291-1299. doi: 10.46852/0424-2513.2.2023.33.
[19] Gonçalves, M.J., da Silva, A.C., & Ferreira, C.G. (2022). The future of accounting: How will digital transformation impact the sector? Informatics, 9(1), article number 19. doi: 10.3390/informatics9010019.
[20] Han, H., Shiwakoti, R.K., Jarvis, R., Mordi, C., & Botchie, D. (2023). Accounting and auditing with blockchain technology and artificial intelligence: A literature review. International Journal of Accounting Information Systems, 48, article number 100598. doi: 10.1016/j.accinf.2022.100598.
[21] Hasan, A.R. (2021). Artificial intelligence (AI) in accounting & auditing: A literature review. Open Journal of Business and Management, 10(1), 440-465. doi: 10.4236/ojbm.2022.101026.
[22] Hnatieva, T., Yakovenko, A., & Kotyk, N. (2023). Use of artificial intelligence technology for accounting of agricultural enterprises. Economic Herald of the Black Sea Region, 4, 16-28. doi: 10.37000/ebbsl.2023.04.02.
[23] Ihnatenko, S., & Tomashuk, I. (2024). Current trends in automation and digitalization of management accounting in agricultural enterprises: Economic aspect. Economic Space, 191, 465-472. doi: 10.32782/2224-6282/192-3.
[24] Iorgachova, M., & Kovalova, O. (2023). Directions for increasing the efficiency of the company's cash flow management. Scientific Bulletin of Mukachevo State University. Series “Economics”, 10(4), 20-31. doi: 10.52566/msu-econ4.2023.20.
[25] Krassowska, T., Becker, J., Becker, A., & Ziemba, P. (2022). Multi-criteria evaluation of financial and accounting systems intended for small and medium-sized enterprises. Procedia Computer Science, 207, 3553-3562. doi: 10.1016/j.procs.2022.09.414.
[26] Kumar, V.S., Praneetha, Y., Kumar, S., & Choudhary, A. (2020). Front accounting: An ERP for small and medium Agri enterprises. International Journal of Current Microbiology and Applied Sciences, 9(3), 3287-3294. doi: 10.20546/ijcmas.2020.903.377.
[27] Kurhan, N., Fartushniak, O., & Bezkorovaina, L. (2023). Improvement of organization and automation of commercial enterprise electronic money accounting in conditions of economy digitalization. Economics of Development, 22(3), 8-20. doi: 10.57111/econ/3.2023.08.
[28] Lei, M., Liu, S., Luo, N., Yang, X., & Sun, C. (2022). Trusted-auditing chain: A security blockchain prototype used in agriculture traceability. Heliyon, 8(11), article number e11477. doi: 10.1016/j.heliyon.2022.e11477.
[29] Lomachynska, I., Maslennikov, Y., Poberezhets, O., Shebanina, O., & Plets, I. (2023). Management of the financial potential of innovative development of the national economy in the context of digital transformation. Economic Affairs, 68(Special Issue), 797-803. doi: 10.46852/0424-2513.2s.2023.23.
[30] Maiti, M., Kotliarov, I., & Lipatnikov, V. (2021). A future triple entry accounting framework using blockchain technology. Blockchain: Research and Applications, 2(4), article number 100037. doi: 10.1016/j.bcra.2021.100037.
[31] Martaseli, E., & Maragita, M. (2023). The impact of artificial intelligence on the accounting profession in the era of industry 4.0 and society 5.0. Journal of Accounting for Sustainable Society, 5(1). doi: 10.35310/jass.v5i01.1053.
[32] Mökander, J., Morley, J., Taddeo, M., & Floridi, L. (2021). Ethics-based auditing of automated decision-making systems: Nature, scope, and limitations. Science and Engineering Ethics, 27(4), article number 44. doi: 10.1007/s11948-021-00319-4.
[33] Munz, J., Gindele, N., & Doluschitz, R. (2020). Exploring the characteristics and utilisation of Farm Management Information Systems (FMIS) in Germany. Computers and Electronics in Agriculture, 170, article number 105246. doi: 10.1016/j.compag.2020.105246.
[34] Novykova, I., Chornyi, R., Chorna, N., Malik, M., & Rybak, A. (2023). Ensuring of financial stability of the enterprise by financial management tools. In B. Alareeni & A. Hamdan (Eds.), Sustainable finance, digitalization and the role of technology. ICBT 2021. Lecture notes in networks and systems (Volume 487). Cham: Springer. doi: 10.1007/978-3-031-08084-5_56.
[35] Nugrahanti, T.P., & Pratiwi, A.S. (2023). The remote auditing and information technology. Journal of Accounting and Business Education, 8(1), 15-39.
[36] Petchenko, M., Fomina, T., Balaziuk, O., Smirnova, N., & Luhova, O. (2023). Analysis of trends in the implementation of digitalization in accounting (Ukrainian case). Financial and Credit Activity Problems of Theory and Practice, 1(48), 105-113. doi: 10.55643/fcaptp.1.48.2023.3951.
[37] Pimentel, E., & Boulianne, E. (2020). Blockchain in accounting research and practice: Current trends and future opportunities. Accounting Perspectives, 19(4), 325-361. doi: 10.1111/1911-3838.12239.
[38] Poppe, K., Vrolijk, H., & Bosloper, I. (2023). Integration of farm financial accounting and farm management information systems for better sustainability reporting. Electronics, 12(6), article number 1485. doi: 10.3390/electronics12061485.
[39] Potryvaieva, N., & Palieiev, А. (2023). Accounting outsourcing as a modern effective tool of enterprise management. Ukrainian Black Sea Region Agrarian Science, 27(3), 18-30. doi: 10.56407/bs.agrarian/3.2023.18.
[40] Qasim, A., & Kharbat, F.F. (2020). Blockchain technology, business data analytics, and artificial intelligence: Use in the accounting profession and ideas for inclusion into the accounting curriculum. Journal of Emerging Technologies in Accounting, 17(1), 107-117. doi: 10.2308/jeta-52649.
[41] Oklander, M., Yashkina, O., Petryshchenko, N., Karandin, O., & Yevdokimova, O. (2024). Economic aspects of Industry 4.0 marketing technologies implementation in the agricultural sector of Ukraine. Ekonomika APK, 31(4), 55-66. doi: 10.32317/ekon.apk/4.2024.55.
[42] Ramteke, B., & Dongre, S. (2022). IoT based smart automated poultry farm management system. In Proceedings of the 10th International conference on emerging trends in engineering and technology-signal and information processing (pp. 1-4). Nagpur: IEEE. doi: 10.1109/ICETET-SIP-2254415.2022.9791653.
[43] Rață, A., Alboaie, S., Ștefan, G., & Tudoran, A.S. (2022). Transforming auditing and control in agriculture with blockchain and AI. Scientifical Papers, 65, 195-198.
[44] Rocha, G., de Oliveira, L., & Talamini, E. (2021). Blockchain applications in agribusiness: A systematic review. Future Internet, 13(4), article number 95. doi: 10.3390/fi13040095.
[45] Saiz-Rubio, V., & Rovira-Más, F. (2020). From smart farming towards agriculture 5.0: A review on crop data management. Agronomy, 10(2), article number 207. doi: 10.3390/agronomy10020207.
[46] Schrijvers, J. (n.d.). ERP for agriculture: Industry specific benefits and features. Retrieved from https://rsult.one/erp-per-industry/erp-for-agriculture-industry-specific-benefits-and-features/.
[47] Semenenko, O., Minochkin, A., Vasylenko, S., Klepikov, V., & Pravdyvets, O. (2021). Assessment of the impact of the armed conflict in Ukraine on the development of the agricultural sector and price setting. Scientific Horizons, 24(7), 68-80. doi: 10.48077/scihor.24(7).2021.68-80.
[48] Shepel, I. (2023). Modern possibilities of organizing the accounting of production costs and finished products in the conditions of complex automation. Economy and Society, 55. doi: 10.32782/2524-0072/2023-55-7.
[49] Shukor, S.A., Sheikhi, A., & Nashir, A.H.M. (2020). Enterprise resource planning (ERP) adaptation in Malaysia agricultural SME: Issues and trends. Journal of Theoretical and Applied Information Technology, 98(12), 2046-2062.
[50] Sokil, O., Zvezdov, D., Zhuk, V., Kucherkova, S., & Sakhno, L. (2020). Social and environmental costs: The impact of accounting and analytical support on enterprises' sustainable development in Germany and Ukraine. Economic Annals-XXI, 181(1-2), 124-136. doi: 10.21003/ea.V181-11.
[51] Spanò, R., Massaro, M., Ferri, L., Dumay, J., & Schmitz, J. (2022). Blockchain in accounting, accountability and assurance: An overview. Accounting, Auditing & Accountability Journal, 35(7), 1493-1506. doi: 10.1108/AAAJ-06-2022-5850.
[52] Stender, S., Tsvihun, I., Balla, I., Borkovska, V., & Haibura, Yu. (2024). Innovative approaches to improving the agricultural sector in the era of digitalization of the economy. Scientific Horizons, 27(3), 154-163. doi: 10.48077/scihor3.2024.154.
[53] Syrtseva, S., Burlan, S., Katkova, N., Cheban, Y., Pisochenko, T., & Kostyrko, A. (2021). Digital technologies in the organization of accounting and control of calculations for tax liabilities of budgetary institutions. Studies of Applied Economics, 39(7). doi: 10.25115/eea.v39i7.5010.
[54] Thottoli, M.M., Ahmed, E.R., & Thomas, K.V. (2022). Emerging technology and auditing practice: Analysis for future directions. European Journal of Management Studies, 27(1), 99-119. doi: 10.1108/EJMS-06-2021-0058.
[55] Trichkova-Kashamova, E., & Paunova-Hubenova, E. (2021). Integrated software solutions in animal husbandry. In Proceedings of the international conference automatics and informatics (pp. 248-251). Varna: IEEE. doi: 10.1109/ICAI52893.2021.9639487.
[56] Trusova, N., Tanklevska, N., Synchak, V., Prystemskyi, O., & Tereshchenko, M. (2020). State support of agro-insurance of agricultural risks in the market of goods derivatives of Ukraine. Industrial Engineering and Management Systems, 19(1), 93-102. doi: 10.7232/iems.2020.19.1.093.
[57] Verbivska, L., Zhuk, O., Ievsieieva, O., Kuchmiiova, T., & Saienko, V. (2023). The role of e-commerce in stimulating innovative business development in the conditions of European integration. Financial and Credit Activity Problems of Theory and Practice, 3(50), 330-340. doi: 10.55643/fcaptp.3.50.2023.3930.
[58] Visconti, P., de Fazio, R., Velázquez, R., Del-Valle-Soto, C., & Giannoccaro, N.I. (2020). Development of sensors-based agri-food traceability system remotely managed by a software platform for optimized farm management. Sensors, 20(13), article number 3632. doi: 10.3390/s20133632.
[59] Zhang, C., Thomas, C., & Vasarhelyi, M.A. (2022). Attended process automation in audit: A framework and a demonstration. Journal of Information Systems, 36(2), 101-124. doi: 10.2308/ISYS-2020-073.
[60] Zhang, Y., Xiong, F., Xie, Y., Fan, X., & Gu, H. (2020). The impact of artificial intelligence and blockchain on the accounting profession. IEEE Access, 8, 110461-110477. doi: 10.1109/ACCESS.2020.3000505.