Many innovative accounting technologies and automation trends have been surfacing off-late, challenging the conventional methodologies in the financial value chain. Companies are often on the hunt for advanced technologies to increase efficiency of the processes of accounting in aspects such as bookkeeping, transfer of asset ownership and maintaining accurate transactions. Blockchain is primarily an accounting technology also known as the distributed ledger technology and has the capability to multiply the efficacy of the accounting procedures.
Accounting Industry was typically dependent on paper trails and then came the cloud-based accounting to ensure the regulatory requirements were met. Blockchain technology archives and collects the transaction history, records cash flow, assets and liabilities. As an alternative to maintain the transaction receipts in separate records, companies can now save their transactions into a joint register establishing an interlocking system of accounting entries.
Blockchain technology implementation is a breakthrough opportunity to reorganize the accounting and auditing processes as well as ensure the accuracy of the records. Currently, blockchain methodology is a remarkable improvement and can provide immutable and candid records of all the accounting related data. As all data entries are scattered and cryptographically sealed duplicating them or destroying them is next to impossible. Many companies from big business giants to small startups have started to embrace this revolutionary technology and would gain an advantage in a few ways such as:
• Standardization would permit the auditors to automatically authenticate important data hidden in the financial statements.
• The cost and time to conduct the financial audit would drop substantially.
• Auditors have more time to focus on those core areas that have a higher add-on value
rather than mundane tasks.
Comparing the latest automation trends in accountancy such as Artificial Intelligence, Machine Learning and Blockchain technology; Blockchain has the capability to boost the accounting profession with more of transactional level accounting and slicing the costs of reconciling and maintaining ledgers. These circumstances might bring up certainty over rights and obligations to enhance the accountant’s potential and multiply their scope to record more types of financial activity and magnify the underpinning economic reality. Blockchain could lend a hand to the accountants to gain clarity over resource availability and certain obligations of their organizations. Now accountants are focusing more on planning and valuation rather than just recordkeeping.
Blockchain adoption is a perfect alternative for bookkeeping and reconciliation work. The first real-time application of the Blockchain has emerged in 2009 and popularly known as Bitcoin, a cryptocurrency. Bitcoin and many other digital currencies have been developed but early abuse of bitcoin by various enterprises delayed the evolution of Blockchain technology. Blockchain technology might completely shapeshift the nature of present-day accounting practices sooner or later. Spectrum can lead you effortlessly through the cascade of new technological automation with unprecedented services.