A blockchain-like accounting world! How can blockchain in accounting be a game changer

With various sectors believed to be on the lookout for blockchain business opportunities, accounting firms also seem to have picked up the trail. From an auditor’s perspective, blockchain-based smart contracts can process transactions and generate financial reports.

According to OriginStamp, a time-stamping service for digital content, over 50% of payment infrastructure services have embedded blockchain in their business operations. Furthermore, predictions have indicated that blockchain will increase global gross domestic product (GDP) by around two billion dollars by 2030. “I believe blockchain can provide security in terms of tracking and securing transactions, ownership of assets, reducing costs and maintaining accounts that can help businesses . Transactions can also be immutable so that no one can change what has been established. Blockchain is still an evolving technology and its use in the future in the accounting sector will be beneficial,” Prashant Kumar, Founder and CEO, weTrade, a cryptocurrency-based platform, told FE Blockchain.

Industry analysis revealed blockchain-based accounting can help improve efficiency and transparency in the global monetary landscape. As stated by the Institute of Chartered Accountants in England and Wales (ICAEW), a global chartered accountants society, blockchain in accounting can help reduce the cost of maintaining and reconciling ledgers, and ensure certainty over the ownership and history of assets. It is believed that blockchain-based data analysis can help external auditing.

“Blockchain can help with money management and the administration of transfers that occur between parties. I believe that blockchain’s creation of a record of transactions enables the synchronization of shared transaction information across all locations. By eliminating reconciliations at the transaction level, such information provision makes it easier to develop continuous audit,” stated Vipin Vindal, CEO, Quarks Technosoft, an information technology (IT) and services provider.

Reportedly, companies such as Xero, Intuit, Wave, Ethereum, Chainalysis, among others, have begun adopting blockchain-based accounting practices. Furthermore, the future of blockchain-based accounting can help leverage decentralized finance platforms (DeFi) and artificial intelligence (AI) for decision-making and financial planning. Insights from FreshBooks, a software company, the government’s introduction of blockchain-oriented tax laws indicate that blockchain must be taken seriously and that blockchain-supported accounting can have an impact on businesses.

“I believe that the future of blockchain in accounting looks bright, as the technology has the potential to impact accounting practices by providing a secure, transparent and immutable record keeping system. The adoption of blockchain technology in accounting practices can help increase the safety and security of digital assets by increasing security, improving transparency and increasing accountability,” said Sathvik Vishwanath, co-founder and CEO, Unocoin, a cryptocurrency exchange.

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