Accounting for Humanity

On re-reading Wootton and Kemmerer’s (2007) paper this week, I am once more drawn to the exploration of gender in accounting, and the question of where humans and technology fit in the profession. Wootton and Kemmerer (2007) provide a fascinating analysis of the introduction and adoption of ‘Mechanical Accounting’ in the US during the industrial era.
The mechanical era in technology was one that saw the rise of steam, coal and manual powered labour, a time where lives lived amidst rapid change, mass production, pollution, industry, slavery and colonialisation (not quite the romanticised vision of history we like to link to nostalgia, but reality is the more important vision to render if we are to understand it).

From a high-level, generalised perspective, this paper demonstrates the influence of technology upon accounting practice; an important acknowledgement that can often be overlooked however, underlying this is a questioning of how one perceives this influence. Throughout the paper the findings shared appear to contradict and confuse, rendering one unable to reach a clear conclusion. It should be highlighted that this contradiction is not a criticism of the authors nor the reliability and accuracy of their analysis. The contradiction lies in the ambiguity of the findings, the discovering that “a man’s not all good nor all bad” as Roy Orbison* once sang, although in this analysis ‘man’ (putting aside the gendered language…for now) would change to ‘outcome’. In this study, Wootton and Kemmerer (2007) show that the introduction of accounting and business ‘machinery’ brought many positives to accounting however, it also brought a number of negatives in tandem.

Beginning with the ‘humans vs machines’ concept, a notion that may seem to be an entirely 21^st century, AI and Robotics-induced fear, but can be traced back into history, arguably to even earlier than the period we explore now. Before mechanisation Wootton and Kemmerer (2007) note the accountant as the predominant actor in the financial realm. He was a white, knowledgeable and skilled gentleman, embarking on a profession that would see him rise into the elite of society. By his side we also find the bookkeeper. He did not possess the same pedigree as the accountant however, by securing this sought-after skilled transitional position, he too was embarking on a journey that could see him one day make it to the realm of accountant.  But then it all changed, the machines arrived.

With the introduction of the mechanical type/book-writer, the calculator, the tabulator and even the seemingly innocuous carbon paper, bookkeeping, costing, and clerical work became centralised and thus, ‘easier’ to conduct within companies. Tasks that once required skilled professionals such as accountants, could be replaced by lower-paid clerks and a machine and further, multiple clerks could be employed for the cost of 1 accountant. From the positive perspective, this led to an increase in the number of individuals employed in accounting departments and overall, the number of people employed into general business function roles would also increase. From a ‘human-replacement’ view of technology this presents a contradictory finding, technology was creating more and new employment opportunities rather than replacing humans however, these roles were considered ‘dead-end’ in terms of career advancement. While low-skilled employment was increasing, this presented less opportunities for skilled professionals and this introduces the negative view, it was the professional roles being de-skilled and substituted for clerks and machines. Such a realisation presented a threat to the accountant, the profession risked losing legitimacy and status and thus, the role had to evolve to survive. Interestingly however, technology would also contribute to finding the solution. With more machinery and clerks to process data, businesses were amassing more data than ever before and, they needed someone to help them interpret and put this information to use thus, in steps the accountant. Accountants who Wootton and Kemmerer (2007) note, were intent upon distancing themselves for the perceived ‘menial’ tasks related to bookkeeping, it was the profession’s desire to focus upon the more mentally challenging tasks of financial management. With machines removing the mundane from the accounting task-list, the accounting role developed into a managerially-aligned position, the accountant would now be the one who controlled an entire accounting department (Wootton and Kemmerer, 2007). Although both creation and replacement by technology is evident in Wootton and Kemmerer’s (2007) study, the key finding is arguably the need to be adaptive, to be aware of innovation and how humanity can adapt to it to remain relevant in the world of work. This is an area of great interest and thus, there is scope for future research here.

The second area of confused conclusions is that of technology and genderisation. As noted, technology transformed bookkeeping. What was once a specialised skill-set and transitional role became a ‘dead-end trade’, an occupation that required minimal training and effort (though in contrast most trades arguably require highly specialised and extensive training), the bookkeeper was transformed. She was an unskilled, white, lower-paid employee, one of many in a ‘dead-end’ job, trained only to master and operate her ‘accounting machine’,  and this is where our perceptions of technology, accounting and gender become lost in the thick industrial smog of 19th century America.
Throughout their analysis, Wootton and Kemmerer (2007) highlight that the number of women working in the bookkeeping trade dramatically increased, reaching the point where women would dominate it. This undoubtedly is a triumph; women were finally being permitted entry into the accounting realm and (while far lower-paid than male counterparts) were being paid more than they had in other previous fields of employment. However, women were still being actively excluded from the profession. Women (regardless of class and/or colour) were not permitted to study accounting and thus, were denied entry into the still gentleman (many lower class men and men of colour would also be excluded) dominated realm. This reality dampens the accomplishment felt in the initial observations, highlighting further the gender divide and women’s struggle to obtain equal rights.

What this conflicting response does inspire though is a possibility to explore how this small step led to the eventual inclusion of women into the accounting profession. There are many contributors noted in the women’s rights journey however, technology may be the one that has been overlooked.

References

Wootton, C.W. and Kemmerer, B.E. (2007) ‘The Emergence of Mechanical Accounting in the U.S., 1880-1930’, The Accounting Historians Journal, 34(1), pp. 91-124.

*Roy Orbison’s ‘Best Friend’ an excellent song