There’s no doubt that blockchain is one of the most discussed technologies of 2021. And, it has a prominent reason.
Blockchain is a reliable and unchangeable ledger. It offers you a new way of storing and sharing data. It helps accountants to consolidate and validate the data. They don’t need to keep it in disparate locations.
Some accountants claim blockchain is an accountancy-based technology. And, partially, it is true.
Blockchain mostly underpins bitcoin and other cryptocurrencies. And it underpins them by reconciling accountants. It also helps the users track ownership of assets and values of the sales.
That’s why blockchain works as an influential factor in the accountancy industry. It offers us a transparent and durable framework to ease tracking and measuring assets.
Blockchain helps to understand what assets are available in real-time. It makes it easier for you to measure how your assets’ value affects cash flow in the future. Outsourcing accounting work to India helps avoid stress and get the job done in time by the experts.
How Does a Blockchain Work?
The purpose of blockchain is to authorize digital transmission to be documented and distributed but not revised. That means a blockchain is a basis for immutable ledgers or documents of trades that cannot be changed, deleted, or whipped. It is also one reason why blockchains are also known as distributed ledger technology (DLT).
The largest and best-known blockchain networks, such as Bitcoin and Ethereum, are public and allow anyone with a computer and an internet connection to partake. Currently, tens of thousands of projects are looking to execute blockchains in various ways to help the community other than just recording trades—for example, voting securely in democratic elections.
Is Blockchain Disrupting Accountancy?
Finally, we reached that million-dollar question. And, the good news is that the answer is a big “NO.”
The first thing that you should worry about is disruptive technology is, it snatches people’s jobs. On the other hand, blockchain hugely impacts everything related to accounting.
It might look scary for an accountant when they see blockchain is controlling everything from auditing to cybersecurity. But, it only takes care of the way you store, access, and interpret data. That’s all.
Blockchain presents an opportunity. Both the accountancy firms and the accountants that work with blockchain are the ones who are more highly sought after shortly. All we can say is, the day is not that far when the accountancy industry will embrace the blockchain-based future.
Generally, accountants are great at record-keeping. Blockchain helps a lot to keep the records on an interoperable system.
So, the auditors and the third parties can access it more quickly and safely. In this intervening period, accountants should oversee the implementation and maintenance of all the new technologies, including blockchain.
A History of Disruption
Well, blockchain has a certain amount of history with the accounting industry. Specialist accountancy firms are already there to deal with cryptocurrency assets.
Many countries are developing laws and regulations to apply tax on the income from cryptocurrency. Several accountancy firms are taking a crucial part in developing the new rules.
They are actively campaigning for those regulations. It is happening for both blockchain technologies and cryptocurrency.
That is a wise move as it increases the odds of those accounting firms.
It expands the opportunity for them to get more business. Blockchain ledgers increase transparency and help them fight fraud. So, it is a piece of good news for everyone.
What Is the Role of Accountants In Blockchain Technology?
Are you worried about learning more to deal with the programming languages and APIs? Then, we have one more good news for you. That is: you can completely outsource the technical and implementation parts to a team of expert developers.
But, we have bad news for you as well. You will still need to understand blockchain and how it works thoroughly.
Many accountancy schools pop up worldwide that offer courses and certification on blockchain technology. The demands and supply of blockchain technology are growing slowly but surely.
More and more business owners involve blockchain-based systems every passing day. You might think that a certain amount of discussion over a blockchain has already been done. It is typical for every new coming technology. But, only a few predictions about the latest technologies have come true.
Still, we must say that you can only compare blockchain’s impact on the accounting industry with the development of the personal computer. It is going to change the way that you carry out individual tasks. But, it will not let an accountant get rid of their day-to-day responsibilities.
Wrapping Up
Blockchain technology is going to influence everything related to accounting, literally. You can use blockchain everywhere you store data. So, blockchain will find its room to come along and take over every small and big thing in the accounting industry.
It is ever truer wherever the accountants need interoperable data. Blockchain comes in handy in the healthcare sector as well. A blockchain-based patient record paves the way to a fair system that lets all the providers access patient data. The patient can have access to it as well.
Now let’s come to the point of accountancy. Blockchain-based records systems keep an accountancy firm on its toes by developing transparency and making it easier for everyone to switch providers at the drop of a hat.
Blockchain technology also helps the auditors step in and ensure that everything is in order. The increased transparency lets both clients and providers work at ease.
So, the people who love to adopt new technologies like blockchain quickly will come out on top. Additionally, you are never too late to start knowing blockchain technology.
Although it doesn’t seem relevant now, you have to embrace it shortly. It would be beneficial if you invest half an hour a week to read the latest stories on the blockchain. It will work great to give you a head start. And, you are going to thank that article in future.
Hope now you got a clear idea about blockchain technology in the accounting industry
