Historical development of IT-related innovations: From manual and paper bookkeeping to automated and digital financial accounting

This study addresses the historical development of information technology -related (IT) innovations in financial accounting in Finland. The research questions are: 1) which were the main stages and phases in the historical development of the innovations over time and 2) how accounting legislative reforms established limits to and enabled the use of innovations? These questions were examined based on articles published in two professional accounting journals in Finland between 1970 and 2019, accounting laws and regulations. The results, firstly, identify two stages and seven phases
in the historical development of IT innovations in financial accounting over half a century. Secondly, they identify several legislative reforms, which initially were more restrictive and later on more permissive about the use of IT innovations. Overall, the findings offer important insights into the historical development of IT innovations of financial accounting, particularly as Finland has been one of the chief proponents of the adoption of IT.