Artificial Intelligence in Automated Bookkeeping: A Value-added Function for Small and Medium Enterprises

Nurul Akmar Azman - Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia
Azlinah Mohamed - Institute for Big Data Analytics and Artificial Intelligence (IBDAAI), Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia
Amsyar Mohmad Jamil - MVS Absolute Ent, Shah Alam, Malaysia

Citation Format:



Bookkeeping plays a vital role in dealing with records of day-to-day financial transactions from invoices until payment. It is also a method of documenting all company transactions in order to create a collection of accounting documents. Studies show that an evolution of bookkeeping management from manual record keeping to electronic record keeping had simplified most burden of bookkeepers as well as more reliable and accurate. Bookkeeping includes, in particular, classifying items correctly and entering financial details into an accounting system. However, with the rise of artificial intelligence, automated bookkeeping system is common to large businesses tasks at real time with hassle free. The system will function more than just journal management but also a decision-making tool to any businesses. Despite the benefits of the system, many small and medium enterprises especially in Malaysia still hesitate to implement the system. Artificial intelligence will further improve automated bookkeeping making it simpler and efficient for all levels of businesses. This paper presents an Artificial Intelligence perspective and methods used in automated bookkeeping focuses on invoices processes such as Optical Character Recognition (OCR), for document recognition, machine learning and auto journal record entries. Besides that, its challenges to be implemented in small and medium enterprise. The result of these studies highlighted benefits in the automated bookkeeping process to suit Malaysian small and medium enterprises. Future work will look at the suggested intelligence features to be implemented for a more efficient automated bookkeeping for small and medium enterprise.


Automated bookkeeping; automated invoices recognition; artificial intelligence; optical character recognition.

Full Text:



A. Çalişkan, “How accounting and accountants may contribute in sustainability?” Social Responsibility Journal, vol. 10, pp. 246-267, 2014.

M. Nyathi and O. H. Benedict, “An analysis of bookkeeping practises of micro-entrepreneurs in the retail clothing industry in cape town, south africa,” Journal of Entrepreneurship & Organization Management. vol. 06. 10.4172/2169-026X.1000216, 2017.

L. Calder, “Junior Bookkeeper: Computerised Bookkeeping Pastel Accounting,” Cape Town: Edge learning media. 2011.

L.C.K. Mwebesa, C. Kansiime, B. Asiimwe, P. Mugambe and I. B Rwego, “The effect of financial record keeping on financial performance of development groups in rural areas of western Uganda. International Journal of Economics and Finance, vol. 10, no. 4, pp. 136-145, 2018.

J. Peltier, Y, Zhao and J. Schibrowsky, “Technology adoption by small businesses: An exploratory study of the interrelationships of owner and environmental factors,” International Small Business Journal - INT SMALL BUS J. vol. 30, pp. 406-431, 10.1177/0266242610365512, 2012.

K. Leonard, “About Business. [Online]. Available:, 2019.

N. R Mohd Sallem, N. Mohd Nasir, C. Kassim, “Small and medium enterprises: Critical problems and possible solutions,” International Business Management, vol. 11, pp. 47-52, 2017.

D. O. Aladejebi and D. J. A. Oladineji, “The impact of record keeping on the selected small and medium enterprises in Lagos Metropolis,” Journal of Small Business and Entrepreneurship Development, vol. 7, no. 1, 2019.

W. Zhang, “Online invoicing system based on QR code recognition and cloud storage,” Proc. 2nd IEEE Adv. Inf. Manage., Commun., Electron. Autom. Control (IMCEC), pp. 2576–2579, 2018.

P. Cedillo, A. García, J. D. Cárdenas and A. Bermeo, “A systematic literature review of electronic invoicing, platforms and notification systems,” 2018 International Conference on eDemocracy & eGovernment (ICEDEG), pp. 150-157, 2018.

E. O. Eric and D. Gabriel, “Challenges of bookkeeping on small and medium scale enterprises (SMEs) in Kwaebibirem District: The Case of Appex Global (Ghana) Limited,” International Journal of Business and Management Cases, vol. 1, no. 2, pp. 1-12, 2012.

R. Plant, “An introduction to artificial intelligence,” 32nd Aerospace Sciences Meeting and Exhibit. doi:10.2514/6.1994-294, 1994.

P. P. Shinde and S. Shah, “A review of machine learning and deep learning applications,” 2018 Fourth International Conference on Computing Communication, 2018.

H. Lu, Y. Li, M. Chen, H. Kim and S. Serikawa, “Brain intelligence: Go beyond artificial intelligence. Mobile Networks and Applications, doi:10.1007/s11036-017-0932-8, 2017.

X. Xu, “Application research of accounting archives informatization based on big data,” DataProcessing Techniques and Applications for Cyber-Physical Systems (DPTA 2019), Springer, Singapore, pp. 55-62, 2020.

V. Gupta, A. Aggarwal and U. Ghose, “Rule based information leveraging from business invoices,” International Conference on Computational Techniques in Information and Communication Technologies (ICCTICT), 2016.

U. Abdullah, A. Ligęza, and K. Zafar, K. “Performance evaluation of rule-based expert systems: An example from medical billing domain,” Expert Systems, vol. 34, no. 6, pp.12218, 2017.

H. Rkein, Z. Issa, F. Awada, and H. Hejase, Hussin. “Saudi Journal of Business and Management Studies Impact of Automation on Accounting Profession and Employability: A Qualitative Assessment from Lebanon,” vol. 4, pp. 372-385. 10.21276/sjbms.2019.4.4.10., 2019.

K. J. Shaffer, C. J. Gaumer and K. P. Bradley, "Artificial intelligence products reshape accounting: time to re-train", Development and Learning in Organizations, vol. 34 no. 6, pp. 41-43., 2020.

A. Lupasc, I. Lupasc and C. G. Zamfi, “Impact of Intelligent Modern Technologies in Business,” Ovidius University Annals Economic Sciences Series, vol. 12, no. 1, pp. 580-585, 2012.

R. Kumar and A. Singh, “Detection and segmentation of lines and words in gurmukhi handwritten text. 2010 IEEE 2nd International Advance Computing Conference, IACC 2010, pp. 353-356, 10.1109/IADCC.2010.5422927, 2010.

Y. Sun, X. Mao, S. Hong, W. Xu and G. Gui, “Template Matching-Based Method for Intelligent Invoice Information Identification,” IEEE Access, vol. 7, pp. 28392-28401, 2019.

R. Smith. “An overview of the Tesseract OCR Engine.” Proc 9th Int. Conf. on Document Analysis and Recognition, IEEE, Curitiba, Brazil, Sep 2007, pp. 629-633.

R. Mithe, N. DIVEKAR, S. INDALKAR Optical Character Recognition. International Journal of Recent Technology and Engineering (IJRTE), 2277-3878, 2 (1) (March 2013).

H. Idota, T. Bunno and M. Tsuji, “Impact of ICT on innovation: the case of Japanese SMEs, Disruptive Technology: Concepts, Methodologies, Tools, and Applications,” IGI Global, pp. 1624-1651, 2020.

P. Everaert, S. Patricia, G. Sarens, J. Rommel, Jan. “Using transaction cost economics to explain outsourcing of accounting,” Small Business Economic, vol. 35. pp. 93-112. 10.1007/s11187-008-9149-3, 2010.

V. Mistry, U. Sharma and M. Low, “Management accountants’ perception of their role in accounting for sustainable development,” Pacific Accounting Review, vol. 26, no.1/2, pp. 112–133, doi:10.1108/par-06, 2014.

M. Ibrahim and A. Musah, “Record Keeping and the Bottom Line: Exploring the Relationship between Record Keeping and Business Performance among Small and Medium Enterprises (SMEs) in the Tamale Metropolis of Ghana,” Research Journal of Finance and Accounting. vol.5, pp. 107-117, 2014.

S. N. A Zulkiffli, “Business performance for SMEs: Subjective or objective measures?” Review of Integrative Business and Economics Research, vol. 3, no. 1, pp. 371, 2014.

I. K. Abdul Rahman, A. Z. Abdul Rahman, Y. H. Tew and N. Omar, “A survey on management accounting practices in Malaysian manufacturing companies”, Management Accounting Practices Paper 3, Concurrent session IC, International Management Accounting Conference, National University of Malaysia, Selangor. 1998.

A. Musah, “Benefits and challenges of bookkeeping and accounting practices of SMEs and its effect on growth and performance in Ghana,” Journal of Accounting, Business and Management (JABM), vol. 24, no.2, 16-36, ISSN 2622-2167, 2017.

M. Shakir, “The selection of case studies: strategies and their applications to IS implementation case studies,” Research Letters in the Information and Mathematical Sciences, vol.3, pp. 69-77, 2002,

M. Delie, L. Jian and T. Jinwen, "The design and implementation of a Chinese financial invoice recognition system", Proc. Int. Symp. VIPromCom Video/Image Process. Multimedia Commun., pp. 79-82, Jun. 2002.

C. Alippi, F. Pessina and M. Roveri, "An adaptive system for automatic invoice-documents classification," IEEE International Conference on Image Processing 2005, Genova, pp. II-526, doi: 10.1109/ICIP.2005.1530108, 2005.

S. Sharma and N. Singh, “Optical character recognition using artificial neural networks approach, 2014.

H. T. Ha, “Recognition of invoices from scanned documents,” RASLAN 2017, Recent Advances in Slavonic Natural Language Processing pp. 71–78, 2017.

H. T. Ha, M. Medved, Z. Nevěřilová and A. Horák, “Recognition of OCR invoice metadata block types,” Lecture Notes in Computer Science, pp. 304–312, 2018.

D. L. D. Anh, V. Pham and T. A. Nguyen, "Deep learning approach for receipt recognition", arXiv [cs.CV], 2019.

A. Tarawneh, A. Hassanat, D. Chetverikov and I. Lendak, Imre and C. Verma, “Invoice classification using deep features and machine learning techniques,” 10.1109/JEEIT.2019.8717504, 2019.

W. N. Lin, K. S. Yap, M. Khalid and M. Yusof, "Design of an automated data entry system for hand-filled forms," 2000 TENCON Proceedings. Intelligent Systems and Technologies for the New Millennium (Cat. No.00CH37119), Kuala Lumpur, Malaysia, 2000, pp. 162-166 vol.1, doi: 10.1109/TENCON.2000.893562.

S. Yoon, Sora. 2020. "A Study on the Transformation of Accounting Based on New Technologies: Evidence from Korea" Sustainability 12, no. 20: 8669.


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

JOIV : International Journal on Informatics Visualization
ISSN 2549-9610  (print) | 2549-9904 (online)
Organized by Department of Information Technology - Politeknik Negeri Padang, and Institute of Visual Informatics - UKM and Soft Computing and Data Mining Centre - UTHM
Published by Department of Information Technology - Politeknik Negeri Padang
W :
E :,,

View JOIV Stats

Creative Commons License is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.