BLOCKCHAIN & CRYPTOCURRENCY: ASSET FOR THE ACCOUNTING INDUSTRY

18 Sep 2020  |  733
BLOCKCHAIN & CRYPTOCURRENCY: ASSET FOR THE ACCOUNTING INDUSTRY

Blockchain is an associate degree accounting technology. It's involved with the transfer of possession of assets, and maintaining a ledger of correct money data. The accounting profession is generally involved with the measuring and communication of monetary data. 

Blockchain is an associate degree accounting technology. It's involved with the transfer of possession of assets, and maintaining a ledger of correct money data. The accounting profession is generally involved with the measuring and communication of monetary data. For accountants, mistreatment blockchain provides clarity over possession of assets and existence of obligations, and will dramatically improve potency. Blockchain has the potential to boost the accounting profession by reducing the prices of maintaining and adaptive ledgers, and providing absolute certainty over the possession and history of assets. 

The power of blockchain and crypto are really how that's the future of finance and transaction and kind of transactional rails, payment rails and accounting going forward so once I really understood that and the understood the implications that it actually is going to have on accounting going forward.so right now today there's no business applications out there where if you're a business trying to transact in crypto utilize the advantages of digital currency for payment the speed transparency and and low cost as you're sending payments to remote teams, if you have remote payroll you know vendors across the world as you're kind of you know global business now right operating globally, if you want to utilize the kind of digital currency payment rails again to take advantage versus the older traditional payment rails and not pay your $40 hour not pay all your fx fees utilizing digital currency we make that super easy for business to be able to implement that into their existing kind of operating structures. 

 

Blockchain is one giant open general ledger that anybody can participate in and transactions that occur or transferring a value whatever you want to call it an in and out right a transaction transfer of value, anything that occurs on the blockchain is immutable it cannot be reversed it cannot be like hacked into can't be changed etc so a good way to think of it is like a giant for like us are there's accountants that are familiar with like internal control structures etc think of it as like a black box of transactions that can't be changed black box  and if you have the proper controls of the transactions going in right going into the transaction to the black box so like payroll processing right same thing if you have the controls over transactions going into the blockchain to verify that you have good data going in so you have like a turn, like somebody that has access to a wallet to send bitcoin to vendor xyz you know they're not doing it fraudulently etc.

 

Accountants have begun to use cloud-based technology furthermore, however paper trails still dominate the planet of accounting. When reviewing “the books,” auditors ought to see these paper trails.  And, “cooking the books” is associated with an old drawback, thus it's going to be time for a replacement resolution. Blockchain offers accountant corporations and accountants a chance to contour their audits and processes since it provides a clear and immutable  record of all knowledge. It helps make sure that the info is truthful and correct.
Auditing will be quick and straightforward due to the inherent traceability of everything that's recorded on the blockchain. And, since everything is automatic, blockchain will scale back the time the associate auditor has to pay checking “the books.” Blockchain makes things higher, however it still needs some work. somebody should enter payments, orders, and contracts into the blockchain. Blockchain can build the bookkeeper’s dream come back true—it can offer transparency, efficiency, and record duration.

 

“The massive Four” as Early Adopters

Because of its potential uses, the massive four corporations have started to work the attainable applications of blockchain in line.

KPMG

To help monetary corporations explore the potential of blockchain, the firm launched the “Digital Ledger Services” program back in 2016.

They are conjointly a member of the Wall Street Blockchain Alliance. Moreover, KPMG has teamed up with Microsoft to spot new blockchain applications.

Ernst & Young

The firm launched the “Blockchain Analyzer” in Apr 2018 to assist their auditors analyze and review blockchain applications. They were conjointly the primary to start out acceptive Bitcoin as payment.

PwC

The firm is one amongst the foremost active skilled services enterprises within the world of blockchain technology, having started an obsessive program to coach over 1,000 workers within the use of blockchain and cryptocurrency. PwC has conjointly declared a blockchain validation and auditing resolution for cryptocurrency.

Deloitte

Deloitte was one amongst the primary massive brands to induce on board with blockchain. Last year, they unveiled  a mobile platform “Blockchain in an exceedingly Box” to assist businesses demo blockchain solutions.

The Bottom Line

Applications of blockchain can solely still increase, it'll amendment the manner accountants operate. Accounting won’t become irrelevant; it'll become additional economical.
The same manner computers and also the web have modified workplaces across all industries, blockchain can offer solutions to industry-wide problems. Businesses are presently re-evaluating their business models and assessing the necessity to implement a blockchain resolution. On the contrary, a blockchain resolution tackles pre-existing problems across a spread of sectors in accounting industries, proving to be very powerful in those cases. 


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About The Author
Director, Marketing

Patrick uniquely combines three vital traits: He sees the future of the profession clearly; he discovers or creates supremely practical ways to move the profession toward that future; and he generates tremendous enthusiasm for the move in everyone he meets. He is on a mission to help CPAs, Finance and Accounting Professionals thrive in these times of exponential change. He firmly believes that what got us here, won’t get us there as the Profession faces unprecedented changes and opportunities. Patrick's expertise helps businesses and firms navigate the turbulent waters of business with training, strategic planning, and other tools.Patrick joined team Entigrity in 2015. He has his core expertise in the field of technology but holds very special place for accounting. He has been rigorously doing efforts to find out ways how accounting firms can make the most out of modern information technology.

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