How Blockchain has influenced the Accounting Profession?

Blockchain has been regarded as a disruptive technology that has influenced a host of industries including the accounting profession. Blockchain growth has generated both problems and benefits for the accounting profession. The question then arises is whether accounting and blockchain will have a symbiotic relationship or if accounting professionals need to explore other avenues of work?​


What is the difference between accounting and blockchain?

​The blockchain is essentially a DLT or distributed ledger technology. In traditional accounting the records will be kept in one centralized place whether it is a database or spreadsheet within accounting software. Here, the accountant will type in a record and does whatever is needed to cater to his client’s requests. When such data is requested for by clients the accountant will have to retrieve this information and provide it to them.​

So, only auditors and accountants will enjoy access to this ledger. However, in a DLT, the records are entered and stored in a shared or distributed ledger that can be accessed by all parties. So, all accountants, auditors, clients, and regulators have a copy of this ledger always. Every record here is encrypted and all entries are time stamped automatically. The collection of such records forms a block and that is why this network is called a blockchain. Cryptocurrencies are traded using the blockchain technology and bitcoin is the pioneer and popular cryptocurrency that has huge investors. However, blockchain technology is used in other flourishing industries like textile, entertainment, health care and more.​

cyber-esque background with a gold bitcoin


Benefits of Blockchain for Accounting:

​For accounting professionals, the blockchain offers some key advantages, like immutability and transparency. For any accounting firm it is very advantageous if their records are accessible to all authorized personnel. There however should be rules regarding how such authorized people get to access the records. Blockchains have smart contracts to include these rules. So, according to experts, the blockchain is the next step forward for the accounting industry.​

Big names in accounting like Ernst & Young, Deloitte, KPMG, etc have already started putting in money for the DLT and Deloitte even has 30 active blockchain prototypes. Companies like IBM and Amazon are also providing robust and scalable blockchain platforms; so, accounting companies are likely to follow in their footsteps before you know it.​

What Advantages Can The DLT Offer Accounting?

⇒ To start with, well-designed blockchains are powerful and fast databases; so extraction of data from these is done more efficiently than with traditional accounting software.

⇒ You can only make mistakes when entering data on the blockchain. But once data is correctly entered, smart contracts will ensure that there are no more human errors.

⇒ By using smart contracts an accountant can automate multiple tasks making reconciliation of data is a far less tedious task.

⇒ When there is improved efficiency and fewer errors there are lower costs.

⇒ Blockchains are immutable and this makes it very hard to perpetuate frauds. To change any record that change would have to be replicated across all copies of the DLT at one time and this is not feasible.

⇒ Because of the security provided by DLT a company will experience fewer problems in satisfying regulatory demands.

⇒ Perhaps the biggest positive influence for accounting professionals is the power of the blockchain to lessen audits. Because of smart contracts several auditing functions are automated and this means an auditor will need to spend less time to study the records.

The main drawbacks of the blockchain as far as auditing profession goes is that many of the accounting software is not yet compatible with the blockchain technology. Another key drawback is that companies that wait too long to adopt the blockchain may end up becoming redundant.​

About ja-bd-info


  1. What i don’t understood is actually how you’re not really much more well-liked than you may be now. You’re so intelligent. You realize therefore significantly relating to this subject, made me personally consider it from a lot of varied angles. Its like women and men aren’t fascinated unless it is one thing to do with Lady gaga! Your own stuffs great. Always maintain it up!

  2. Hello there! I could have sworn I’ve been to this website before but after browsing through some of the post I realized it’s new to me. Anyways, I’m definitely glad I found it and I’ll be book-marking and checking back frequently!

  3. I like the valuable information you provide in your articles. I will bookmark your weblog and check again here frequently. I’m quite certain I will learn many new stuff right here! Best of luck for the next!

  4. Hi there very nice site!! Guy .. Excellent .. Amazing .. I will bookmark your site and take the feeds additionally厈I am glad to seek out so many helpful information right here within the post, we’d like work out more techniques in this regard, thanks for sharing. . . . . .

  5. Hello.This article was extremely fascinating, particularly since I was investigating for thoughts on this topic last Wednesday.

  6. I definitely wanted to write down a small remark in order to express gratitude to you for the fantastic advice you are writing here. My incredibly long internet look up has finally been rewarded with brilliant knowledge to go over with my best friends. I would admit that we readers are truly fortunate to exist in a magnificent place with many wonderful professionals with very helpful things. I feel rather blessed to have seen your webpages and look forward to so many more enjoyable moments reading here. Thanks a lot again for everything.

  7. Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your blog? My blog site is in the very same niche as yours and my users would certainly benefit from some of the information you present here. Please let me know if this alright with you. Cheers!

  8. The things i have seen in terms of laptop memory is that often there are requirements such as SDRAM, DDR and so forth, that must go with the technical specs of the mother board. If the personal computer’s motherboard is fairly current while there are no main system issues, improving the memory literally normally takes under a couple of hours. It’s among the easiest laptop or computer upgrade types of procedures one can picture. Thanks for expressing your ideas.

  9. You need to take part in a contest for probably the greatest blogs on the web. I’ll suggest this site!

  10. I was recommended this web site by means of my cousin. I am no longer positive whether this publish is written via him as nobody else recognize such distinct about my difficulty. You’re wonderful! Thanks!

  11. Nice post. I learn one thing tougher on completely different blogs everyday. It is going to all the time be stimulating to learn content material from other writers and follow a little bit one thing from their store. I抎 choose to use some with the content material on my blog whether or not you don抰 mind. Natually I抣l give you a hyperlink on your net blog. Thanks for sharing.

  12. I’d like to find out more? I’d love to find out more details.

  13. How can I find out more about it?

Leave a Reply

Your email address will not be published. Required fields are marked *