How is Blockchain used in accounting?
I’m putting together a massive financial professional round-up post. If you have just a few minutes to answer this question, it will provide some great exposure for you and your brand. Here is my query: How is Blockchain used in accounting?
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Mar 16, 2021
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Mar 1, 2021
I suppose blockchain is the most reliable technology that allows you to protect your payment operation and make your money protected. I appreciate it when companies use that in the business. When I meet an opportunity to pay with bitcoins, I always check if it will be a reliable purchase. It is also about crypto casinos. I have chosen fairspin.io. It is an online casino where I play. They have a license that makes them legal. Friends, pay attention to the level of your security, especially if you do something online.
Mar 1, 2021
Thanks for your answers!
Pretty useful implementation. I've never thought of some of the mentioned aspects of it
Nov 2, 2020
Blockchain is an accounting technology. It is concerned with the transfer of ownership of assets, and maintaining a ledger of accurate financial information. The accounting profession is broadly concerned with the measurement and communication of financial information, and the analysis of said information. Much of the profession is concerned with ascertaining or measuring rights and obligations over property, or planning how to best allocate financial resources. For accountants, using blockchain provides clarity over ownership of assets and existence of obligations, and could dramatically improve efficiency.
But blockchain has become popular in other industries as well. For example, I recently found out that even online casinos are using blockchain. And I'm not talking about platforms that accept cryptocurrency, but which use blockchain technology. It seems to me that this is a new stage of the industry that will make this area more legal and customers will feel safe.
Sep 1, 2020
Blockchain is an accounting technology. It is concerned with the transfer of ownership of assets, and maintaining a ledger of accurate financial information. The accounting profession is broadly concerned with the measurement and communication of financial information, and the analysis of said information. Much of the profession is concerned with ascertaining or measuring rights and obligations over property, or planning how to best allocate financial resources. For accountants, using blockchain provides clarity over ownership of assets and existence of obligations, and could dramatically improve efficiency.
Accountants will not need to be engineers with detailed knowledge of how blockchain works. But they will need to know how to advise on blockchain adoption and consider the impact of blockchain on their businesses and clients.They also need to be able to act as the bridge, having informed conversations with both technologists and business stakeholders.
The blockchain technology has the potential to shapeshift the nature of today’s accounting.
Aug 20, 2020
Blockchain is the golden gift of technology that helps the accounting industry in decreasing costs of reconciliation and maintenance of ledger records; it helps accountants have a history of almost all the information of assets. The technology also allows accountants to get clarity about the available resources and obligations of their businesses.
Blockchain can help reduce bookkeeping and reconciliation workload while adding value to other areas.
Blockchain's impact on the accounting industry:
• It reduces auditing effort as auditors can automate most of their functions
• Reduces the risk of fraud
• Improves regulatory compliance and offers high data security
• Reconciliation becomes easy as accountants can start using smart tools to automate reconciliation tasks
• Enhances efficiency; blockchain offers a faster and more robust database.
Hope it helps!
Aug 11, 2020
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Aug 11, 2020
When Bitcoin, the famous cryptocurrency, burst onto the scene, it promised everything that the current payment systems were incapable of. It was decentralized, open source, and highly secure - allowing payments and transfers to be made in seconds, and doing so at a fraction of the cost of the traditional banking systems.
A lot of people, however, were more interested in Blockchain - The technology underlying the Bitcoin.
Blockchain is a distributed, decentralised database technology that maintains a growing list of transactions and, through encryption and other activity, verifies their authenticity.
Essentially it means that the Blockchain can act as an immutable record of ownership and this is of massive relevance.
Accounting is concerned with recording the economic transactions of an entity in a manner compliant with the accounting standards. These records are then shared with stakeholders like the investors, governments, banks etc. This created the problem of how these stakeholders could trust the company’s books.
Thus came the independent public auditor, whose role was (and is) to serve as an independent guarantor of financial information. Stakeholders placed their trust not in a firm’s management, who had a vested interest in presenting the rosiest of pictures to all who cared to ask, but in the auditors retained by management to vouch for them.
This arrangement unfortunately creates the problem of agency. Do auditors work for the managers who hire and pay them or for the public that relies on their integrity in order to make decisions? Though there are rules governing this, the accounting scandals that occurred in the last 15 years, prove that the picture is not as rosy as it seems.
The Blockchain can help in this. Since altering the transactions/blocks in blockchain is nearly impossible, Using the Blockchain makes it possible to prove integrity of electronic files easily. One approach is to generate a hash string of the supporting evidences like Invoices. That hash string represents the digital fingerprint of that file. Next, that fingerprint is immutably timestamped by writing it into the Blockchain via a transaction. At any subsequent point in time, one can prove the integrity of that file by again generating the fingerprint and comparing it with the fingerprint stored in the Blockchain. In case the fingerprints are identical, the document remained unaltered since first writing the hash to the Blockchain.
The companies would benefit in many ways : Standardisation would allow auditors to verify a large portion of the most important data behind the financial statements automatically. The cost and time necessary to conduct an audit would decline considerably. Auditors could spend freed up time on areas they can add more value, e.g. on very complex transactions or on internal control mechanisms.
Therefore, we can see that the Blockchain has the potential to really disrupt the accounting function and the way auditing is done.
Hope this helps.
Cheers !
Aug 4, 2020
Blockchain is also known as distributed ledger technology (DLT), a digital system that records asset transactions and their details in multiple locations simultaneously. Blockchains are building blocks of interactions and transfers. These blocks can be assets of any digital kind, for example, money, securities, land titles, information on identity, health and other personal data.
Traditional accounting maintains and stores records in a centralised location, typically in the database of an accounting software application. This model is based on a double-entry accounting system, which has been around for centuries. An accountant will enter all records into the system and perform all necessary changes. When information is needed by a client or regulator, the accountant will retrieve the data – only the accountant and auditor have direct access to the centralised ledger.
However, blockchain is accessible to all relevant parties by employing a triple-entry bookkeeping model. This means all stakeholders – accountant, auditor, client, regulator – will have an identical copy of the ledger at all times, shared across a peer-to-peer network of nodes (computers) spread across multiple sites