Blockchain has now become part of the business lexicon, though it is mostly known for its link to cryptocurrency. However, blockchain has a variety of applications outside the crypto universe that make business processes easier.
How will blockchain affect the accounting industry? This is an obvious one: blockchain is based on accountancy.
According to Forbes: “It records and stores assets, liabilities, transactions, and provides methods of recording cash flow and reconciling accounts”. Blockchain technology allows accountants to accurately streamline their processes and audits. This could be very useful in light of recent fraudulent accounting events.
One concern is that any new technology relating to the accounting industry will leave accountants jobless. However, this is not true in the case of blockchain. Blockchain may bring about uncomfortable changes but it will still need accountants to manage it. It is important to incorporate this technology to ensure that clients’ records are safe and secure.
The accountant may have to adapt to the changes that this technology brings but the technology will not lead to the disappearance of the accountant. It will not threaten bookkeepers either, there will always be a need for someone to oversee data and enter in new information.
Blockchain technology could lead to the payment of invoices automatically if it is verified that the goods have been received. It could even make auditing easier by eliminating the need to search through paper trails.
Although it may be difficult adapting, technological improvements always require a change in the way processes are performed. Blockchain could be the fuse for some much needed efficiency detonations in the accounting sector.