Blockchain Technology in Accounting


Blockchain makes a decentralized record of all exchanges where all records are upgraded and open to everybody in real-time. It records and verifies transactions without any trusted central authority. The technology itself exists as a file that maintains a continuously growing list of ordered records called blocks. Each block contains a timestamp and a link to a previous block using a “fingerprint”. Blockchains are resistant to modification of data and cannot be altered retroactively.
Here are some key points to consider about the impact blockchain technology will have on the future of accounting.
Smart Contracts
With the security of blockchain technology, smart contracts that automatically process invoices, bank balances, and other accounts are also made possible with absolute transparency.
Consolidated Bookkeeping
Rather than keeping multiple records, companies can log off their transactions into a joint registry.
Standardization in Auditing
Since blockchain creates absolute standardization in the accounting practice, auditors will be able to verify larger amounts of data much faster. Conducting audit would also be much cheaper and easier.
Security and Trust
In blockchain, every transaction is recorded as a block that contains in timestamp and a unique fingerprint. Hacking an entire blockchain means hijacking all the computers connected to the ledger network. This makes it the most secure data management system ever to be conceived.
Less Paperwork for Accountants

In theory, blockchain will reduce or eliminate the dependency on paperwork in the future. For example, since the government can theoretically peek into a public ledger at any time. Companies no longer need to file tax returns. Everyone will be automatically taxed accordingly.
Location: Singapore

Comments

Post a Comment

Popular posts from this blog

Need a Accounting Software For your Small Business

Image
Accounting software offers many features and tools that can help you manage your finances. It should cater to your business's needs, making it easy to accomplish routine accounting tasks. It should also help you see the big picture of how your business is performing. An ERP company that helps businesses manage their finances, notes that tailoring accounting solutions to a client's unique needs helps the client better understand its business and plan for the future.                           Many business owners we spoke with said that ease of use and timesaving features are the top two things they look for in a program. Here are some of the features accounting software should offer to help you save time and better manage your finances: Basic accounting features. Most small businesses can make do with accounting software that offers basic functions lik...
Read more

Mastery Solutions of Accounting Software

Image
Accounting software can help you save time and money, and offer you valuable insight into your business. It can help you to: simplify data entry – inputting data is fast, straightforward and only needs to be carried out once speed up processes – eg reduce delays between making a sale and generating an invoice automate reports and analysis - on profit and loss, debtors and creditors, customer accounts, inventory counts, sales, forecasting, etc automate tasks – such as calculating pay, producing payslips, automatically calculating VAT, etc reduce errors – by computerising calculations that would have historically been done manually support other functions, such as online banking and e-filing If you choose the package carefully, investing in accounting software can be one of the best decisions you can make for your business.
Read more

How To Improve Your Business With The Help Of Myob Accounting Software

Image
MYOB is a computerised accounting software  package that gives you the ability to handle your business finances like a professional. The benefits are many and once you use the program correctly you should start reaping them immediately. Additionally, using this (or another) computerised system can help you cut the cost of bookkeeping or accounting outsourcing fees. 1) Faster input: Manual entries can be more time consuming. This is especially so when you have to be creating headings or labels as you go alone. As a matter of fact, manual systems can require multiple entries per transaction and are likely to be more complex. The more complex the system the more time it will take. 2) Greater cost cutting: A computerised accounting software package like MYOB offers up-to-date, accurate and easy to access financial information. This means that audit and accounting expenses will be much less than they are likely to be with a complex manual system that only you can readily un...
Read more