What is the 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. In particular, it digitally documents each piece of valid information about a product in real-time and maintains transparency.
Do you have a networking environment? Does this environment demand share records to be transferred in a convenient yet secure way? Then, blockchain helps you to bridge communication and acts as an intermediary between various interacting units. It provides space for the creation of a data ledger that is authentic and is non-duplicated records.
Specifically, the digital data chain forms a block sealed in a way that cannot be altered and remains concealed. How does blockchain come to your rescue?
- Optimised business activities
- Creating authentic and efficient business models
- Reduced risk
How does blockchain affect accounting
With online transactions gaining momentum, Blockchain works as the key to creating a networking web between accounting personnel. So, 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 the financial platform, as played by banks, courts, tax authorities and auditors.
It also fulfils your auditing of transactions in a full-proof and automated form. This serves to display notarized 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 the 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. Also, Add-ons that will cut-short on accounting focuses on a decentralized control on accounting activities with operations like ‘hashing’ and ‘time stamping’.
Accounting for cryptocurrency
With virtual accounting glueing the cracks that traditional accounting proved to fall back upon, ‘cryptocurrency’ is making rounds in accounting platforms. Why is cryptocurrency fascinating for accounting? Well, nothing can tamper digital currency with the intervention of cryptography.
However, transactions, recorded through blockchains, need digital currency exchange. So how does it benefit and work in the present day accounting scenario? These digitized transactions take place in the 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 that of a stock. Yes, you have heard it right, accounting for the cryptocurrency reflects stock shares.