Author:- Careers of Tomorrow
Many headlines about Blockchain lead the technology news for over a year. Only few could handle the most critical question that accounting firms would be asking today: "How will Blockchain affect the accounting industry?"
Blockchain is the basis of the cryptocurrency, bitcoin. Gartner, the research and advisory company, characterizes the technology as the growing list of permanent transactional records that is cryptographically signed and shared by all participants in a network. It lays the foundation for an inventive way to repetitively update and confirm records without the risk of a security breach.
This technology is filled with potential. It is attracting the interest of famous financial services businesses such as Bank of America, HSBC, Morgan Stanley, Citi and more; and for a good reason: having one de-centralized ledger decreases or removes a lot of redundancies and postponements that come in the financial systems.
How will accounting organizations profit from the potential blockchain technology offer?
More companies will embrace Blockchain payment
Businesses catering to customers are increasingly trying different things with accepting payment by means of cryptographic currency; bitcoin standing out as newsworthy for as far back as two years. Companies Microsoft, Shopify, Overstock, accept payment in bitcoin.
B2B companies are getting enthusiastic about blockchain technology; accounting firms can hope to see account tools and products accept and track bitcoin payment. Ernst and Young and PricewaterhouseCoopers - two of the largest accounting firms take bitcoin payment.
Blockchain-enabled tools will remove the need for double entries
Deloitte takes note of that astoundingly high regulatory requirements have restrained the technological progression of accounting programming because of the technology’s dependence on common control mechanisms for balances. Going about as a decentralized ledger, blockchain could avoid duplication of efforts and ease a lot of physical work and intensive tasks from the procedure.
Improved transparency will enable faster transactions
Financial services transactions require a lot of time and money to process. With the help of blockchain’s smart contract, it is possible to lessen – or even automate – the work and enable firms to work precisely and fast. As per John Plansky, a tech writer, banks will be able to settle transactions in real time as opposed to waiting for the trade to clear which takes more time.
Ability to fight fraud authoritatively
Blockchain can settle records and track and measure resources. We see an "indestructible ledger" that enables for prompt verification of any records from a customer's tax audit to business records. This will spare your team a great deal of time and resources from having to search through paper trails and other verification procedures.
Offering advanced Blockchain services to others
Few companies will embrace blockchain more than the others. For example PricewaterhouseCoopers now offers to review blockchain implementation and ongoing transactions. More companies providing services like this will come up, leaving small and medium-sized businesses with selecting which company to choose.
Make sure your accounting firm stays updated with the latest developments by working with an informed partner.
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