Blockchain is not a threat to accounting, it's an opportunity

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Blockchain and accounting Pexels.com

Blockchain is the new word of order in virtually every industry: banking, investment, healthcare, education, insurance, real estate, government, travel, etc.

Although it is best known for its support for the phenomenon of cryptocurrency, technology itself has much wider applications, and industries are ready to incorporate it into their business processes and provides an incorruptible register of identities, transactions, documents, resources, etc. and thus offers a new way to record, store and share data of all kinds.

Potential blockchain for the accounting industry

Blockchain can itself be seen as an accounting-based technology, record and store assets, liabilities, transactions and provide methods to record cash flow and reconcile accounts – a "natural" for the sector and accounting that today has been based on paper trails and is a cloud-based technology to perform accounting functions and transactions and to ensure that regulatory requirements are met. It's really cumbersome, but the auditors need these paper traces when they come in to review the "books". And "cooking those books" has always been a problem. Nobody will ever forget Enron's story.

Because blockchain provides an immutable and transparent record of all accounting-based data, it offers an opportunity for accounting and CPA companies to streamline their processes and audits, ensuring that records are accurate and truthful. This is an incredible improvement over traditional accounting procedures that can be fraught with errors and fraud. Blockchain technology has conquered the world, has been adopted by big business giants, even the legacy technology start-ups like Ibinex supplier of white label solutions for the exchange of cryptocurrencies, have started to adopt this revolutionary technology .

So, do the accountants have to fear for their work?

The short answer is no. Whenever a new technology arrives, there is concern about its danger to people with jobs that are affected. And there was some cause for concern in some industries. Consider, for example, the declining role of investment brokers, now that individual consumers have access to all the data they need to make investment decisions.

But while blockchain will certainly destroy the accounting industry, the task responsibilities of the accountants will remain largely untouched. However, by adopting blockchain technology, accountants and auditing firms will be able to offer their employers and their clients the security and security of all records, records accessible to auditors and others who "need to know "(for example, the SEC).

And so, the role of the accountant will change, but it will not be eliminated. The information has yet to be correctly interpreted and classified before being included in the blockchain, and it falls to the accountant to do so, in addition to implementing and maintaining the blockchain.

And what do you think about the accountants? Those people who need to carefully keep records of transactions? Are their jobs at risk? The answer is again. Someone must monitor the credits; someone must monitor contracts for payments of goods and services; someone has to prepare invoices; someone must track entries and exits. Even with blockchain technology, someone has to enter contracts, purchase orders and payments in those blocks. What this new technology will provide is record efficiency, permanence and transparency, and this is an accountant's dream.

Cases of early use of blockchain in accounting

The promise of blockchain technology has led to a accounting companies in its potential uses .

"Thanks to blockchain, recording and timestamping of documents will make all accounting events memorized in a permanent and unchanging way," Ricky Ng, founder and president of i-House.com [19659008]. "Documents can not be changed during their lifecycle Business processes that span multiple departments or even companies are recorded and fully traceable."

In addition, smart contracts can result in automatic payment of invoices once the receipt of goods. Audits can be much more automated without having to go through paper documents. The auditors will be able to verify the key data underlying the financial statements, thus reducing both the costs and the time for the auditor. Regulatory compliance can be verified much more efficiently.

For these reasons and even more, large accounting firms are investing in a full exploration of blockchain applications. If they can offer their customers greater speed and accuracy, they will retain their competitive edge.

And individual accountants looking for positions within smaller organizations will be much more negotiable if they have completed some of the blockchain technology courses that are now being offered by college accounting programs.

The bottom line? Embrace it and win

Blockchain technology is already destroying a number of industries, and it is here to stay. Although in its infancy, its applications will continue to increase. But will it make the accountants irrelevant? No, but it will change the way accountants do their jobs – just as computers have continued to change the way everyone works.

So, embrace this new technology. Get "educated" in it; promote it to customers and potential employers. It is not necessary to understand the complexity of the technology, which is for the developers. You need to understand how to use it for the benefit of your employer or your clients – this keeps you relevant and required.

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Blockchain and accounting Pexels.com

Blockchain is the new word of order in virtually every industry: banking, investment, healthcare, education, insurance, real estate, government, travel , etc.

While it is best known for its support for the phenomenon of cryptocurrency, the technology itself has much wider applications and industries are ready to integrate it into their business processes and provides an incorruptible register of identities, transactions, documents, resources etc. and thus offers a new way of recording, archiving and sharing data of all kinds.

Potential blockchain for the accounting sector

Blockchain can be seen as an accounting-based technology, records and stores assets, liabilities, transactions and provides methods to record cash flow and reconcile accounts.It is a "natural" for the accounting industry that until now has been based on paper traces and and even on cloud technology to perform accounting functions and transactions and to ensure that regulatory requirements are met. It's really cumbersome, but the auditors need these paper traces when they come in to review the "books". And "cooking those books" has always been a problem. Nobody will ever forget Enron's story.

Because the blockchain provides an immutable and transparent record of all accounting-based data, it offers an opportunity for accountants and CPA companies to streamline their processes and audits, while ensuring that records are accurate and truthful. . This is an incredible improvement over traditional accounting procedures that can be fraught with errors and fraud. Blockchain technology has conquered the world, has been adopted by big business giants, even the legacy technology start-ups such as Ibinex supplier of white label solutions for the exchange of cryptocurrencies, have begun to adopt this revolutionary technology.

So, do the accountants have to fear for their work?

The short answer is no. Whenever a new technology arrives, there is concern about its danger to people with jobs that are affected. And there was some cause for concern in some industries. Consider, for example, the declining role of investment brokers, now that individual consumers have access to all the data they need to make investment decisions.

But while blockchain will certainly destroy the accounting industry, responsibilities & # 39; accountants will remain largely intact. However, by adopting blockchain technology, accountants and auditing firms will be able to offer their employers and their clients the security and security of all records, records accessible to auditors and others who "need to know "(for example, the SEC).

And so, the role of the accountant will change, but it will not be eliminated. The information has yet to be correctly interpreted and classified before being included in the blockchain, and it falls to the accountant to do so, in addition to implementing and maintaining the blockchain.

And what do you think about the accountants? Those people who need to carefully keep records of transactions? Are their jobs at risk? The answer is again. Someone must monitor the credits; someone must monitor contracts for payments of goods and services; someone has to prepare invoices; someone must track entries and exits. Even with blockchain technology, someone has to enter contracts, purchase orders and payments in those blocks. What this new technology will provide will be record efficiency, permanence and transparency, and this is an accountant's dream.

Cases of early use of blockchain in accounting

The promise of blockchain technology has led to a constant interest by major accounting firms in its potential uses .

"Thanks to blockchain, recording and timestamping of documents will make all accounting events memorized in a permanent and unchanging way," Ricky Ng, founder and president of i-House.com [19659035]. "Documents can not be changed during their lifecycle Business processes that span multiple departments or even companies are recorded and fully traceable."

In addition, smart contracts can result in automatic payment of invoices once the receipt of goods. Audits can be much more automated without having to go through paper documents. The auditors will be able to verify the key data underlying the financial statements, thus reducing both the costs and the time for the auditor. Regulatory compliance can be verified much more efficiently.

For these reasons and even more, large accounting firms are investing in a full exploration of blockchain applications. If they can offer their customers greater speed and accuracy, they will retain their competitive edge.

And individual accountants looking for positions within smaller organizations will be much more negotiable if they have completed some of the blockchain technology courses that are now being offered by college accounting programs.

The bottom line? Embrace it and win

Blockchain technology is already destroying a number of industries, and it is here to stay. Although in its infancy, its applications will continue to increase. But will it make the accountants irrelevant? No, but it will change the way accountants do their jobs – just as computers have continued to change the way everyone works.

So, embrace this new technology. Get "educated" in it; promote it to customers and potential employers. It is not necessary to understand the complexity of the technology, which is for the developers. You must understand how to use it for the benefit of your employer or your customers: this keeps you relevant and required.

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