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March 22, 2019
April 4, 2019
Blockchain in Accounting

Blockchain in Accounting

1. What is blockchain effect

You can use blockchain as a transaction method to encapsulate your transaction information. It acts as a ledger of transactions shared within the parties. It digitally documents each piece of valid information of a product in real-time and maintains transparency.
Do you have a networking environment? Does this environment demand shared records to be transferred in a convenient yet secured way? Blockchain helps you to bridge communication and acts as intermediary between between various interacting units. It provides for creation of a data ledger that is authentic and non-duplicated records.

The digital data chain forms a block sealed in a way that it cannot be altered and remains concealed. How blockchain comes to your rescue?

  • Optimised business activities
  • Creating authentic and efficient business models
  • Reduced risk

2. How does blockchain affect accounting

With online transactions gaining momentum, Blockchain works as the key to create a networking web between accounting personnels. If you are an accounting professional intending to upgrade your accounting work, Blockchain works flawlessly!

Get rid of hiring extra accounting professionals, interference and expenditure incurred on redundant factors! Blockchain takes into account multiple roles, in financial platform, as played by banks,courts, tax authorities and auditors.

It fulfils your auditing of transactions in a full-proof and automated form. This serves to display notarised transactions for settling deals between financial companies. What’s more? It functions based on ‘double entry bookkeeping’ to ‘triple entry accounting’ principle. It follows an encrypted and interlocking system of transaction process. How your company will benefit?

These functionalities enable Blockchain to conceal, maintain records and data of financial statements in the most coded and authentic way. Add-ons that will cut-short on accounting focuses on a decentralized control on accounting activities with operations like ‘hashing’ and ‘time stamping’.

3. Accounting for cryptocurrency

With virtual accounting gluing the cracks that traditional accounting proved to fall back upon, ‘cryptocurrency’ is making rounds in accounting platforms. Why cryptocurrency is fascinating for accounting? Well, nothing can tamper digital currency with the intervention of cryptography.

Transactions, recorded through blockchains, need the presence of digital currency exchange. So how does it benefit and work in the present day accounting scenario? These digitized transactions take place in technologically-equipped accounting systems. The carriers are cryptocurrencies with varied names such as bitcoin, ethereum, XRP, EOS, Litecoin and the list continues….

While business transactions come into play using cryptography, the exchange in terms of payment and receipt in crypto matches to that of a stock. You have heard it right, accounting for cryptocurrency is a reflection of stock shares.

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