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Blockchain Accounting

Blockchain in Accounting: Opportunity or Threat

With the augment of digital accounting solutions, blockchain plays an important role in the form of a distributed ledger technology. It has emerged in order to provide an upgraded accounting system in the world of digital currency (Bitcoin) and online payment system.

Blockchain emerged as a concept that got shaped depending on the roles it was dedicated to performing such as:

  1. a transaction database,
  2. a decentralized public ledger,
  3. a technology layer protocol like TCP/IP,
  4. an information technology,
  5. an asset administration and exchange tool,
  6. a registry, inventory, listing and
  7. a lot more useful for application in the stock market, banking and the list goes on….

Blockchain poses as a sequential ledger of bitcoin transactions in a decentralized mode, like a giant interactive spreadsheet wherein access to and updation can be made by all to create an authentic, unique digital credit. It focuses on merging of the most valuable resources viz. information, people and things with the help of digitization and convergence.

With the focus on ‘An internet of Value’, Blockchain innovators exercise to save billions for individuals and companies by mainly focusing on increasing the speed and anonymity of economic transactions, thereby posing as an opportunity.

However, it might prove to be a huge setback for IRS (Internal Revenue Service), credit card companies, payments processors, legions of accounting and law firms due to the use of protocols in payment options will pave way for removing the limits posted on transaction volume.

With a proposed potential for Blockchain to penetrate into digital accounting actions, right from audit to bookkeeping, certain advantages need to be considered:

  • Easy tracking of assets globally
  • Instant, time-saving transactions
  • Automated reconciliation and reporting of transactions
  • Enables compliant, cost-saving verification without a need for a trusted party like courts,       banks, tax authorities and auditors

To know more about Blockchain in Accounting: Opportunity or Threat contact Meru Accounting today!

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