Blockchain has evolved into a disruptive technology leaving other record-keeping technologies in the dust. Initially designed for the mining of digital currency, blockchain technology was later applied to several other potential domains like banking, investment, voting and more. And now, it’s bringing a paradigm shift in the face of accounting with its reliable features.
Simply put, blockchain and accounting is a perfect mix to bring effective financial operations. Now being in the incubation period, unleashing the full potential of blockchain can revamp the accounting management in the upcoming years. Let’s see how the integration of blockchain with accounting can bring leaps and bounds to businesses.
Blockchain is a digital record-keeping system that records and distributes assets in different places at the same time. Blockchain can only be updated by consensus between users in the system, and once new data is recorded it can never be removed.
As accounting demands for reliable distribution of ledger, blockchain becomes the mechanism for achieving the same. Accounting demanded something like blockchain technology and blockchain serves as an ideal for accounting. Let’s cut to the chase, it had to be for accounting that this revolutionary blockchain technology needed to be discovered rather than cryptocurrencies.
The blockchain is the financial challenge of our time. It is going to change the way that our financial world operates.
– Blythe Masters, Executive
Though there were disputes that the advent of blockchain could replace accountants, in another sense it is actually a blessing in disguise for the accountants. It allows them to hit the nail on the head when something goes wrong.
There is a plethora of solutions by which blockchain technology can contribute to accounting,
Blockchain can be a binding component that enables the data to be distributed securely along with different points. The cutting-edge technology as it contains ‘blocks’ makes it almost impossible to tamper the data in any way. Each block makes sure that they verify the data stored and shared. Also ensures that no invalid data enters, or no existing data loses.
As it is cryptographically stored and shared through systems, it promises high-level security without being handed over to a third-party. Thus, your accounting data is as secure as in a locker.
Keeping track of data
A prominent feature of blockchain is its traceability. Each time an activity takes place, blockchain records an audit trail of it. This helps users to keep track of their activity or data, detect frauds, and experience security. Blockchain determines the validity or authenticity of the source of data, preventing any kind of duplicity.
It’s not surprising to think that blockchain, such a bleeding-edge technology may cost a fortune to get deployed, well in fact, it’s just the opposite. Blockchain actually cut costs by serving all the purposes in one place. Blockchain service saves your money by disabling third-party interference, keeping track of your data, giving better data analytics, and more
Time saving and Efficiency
Not to mention the speed and efficiency of blockchain integrated accounting. The faster it is, the more efficient it is. Enabling smart contract can replace traditional ledgers by automated multiple processing, including payments, reconciliation, tax filings, etc. The traditional way of auditing by collecting, organizing, validating, and evaluating data is over and done with. You save time as you have a minimal number of documents to go through. Blockchain offers real-time reports for the users and the auditors to take effective decisions.
Let’s wait and watch blockchain taking over the accounting empire to give a user experience like never. Every business is on a pursuit to adopt blockchain technology and integrate with their systems, especially in the financial domain.