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How Blockchain has influenced the Accounting Profession?

Bitcoin Challenges to the Financial Institutions

How Blockchain has influenced the Accounting Profession : Blockchain is considered a barrier to technology that affected many industries including the accounting profession. The growth of blockchain has created both problems and benefits for the accounting profession. This then raises the question of whether there will be a symbiotic relationship between accounting and blockchain, or whether accounting professionals need to explore other job opportunities.

How Blockchain has influenced the Accounting Profession

What is the difference between accounting and blockchain?

Blockchain is basically DLT or distributed laser technology. In traditional accounting the record will be kept in a centralized location, whether it is a database or a spreadsheet within accounting software. Here, the accountant will type a record and do whatever is necessary to fulfill their client’s requests. When such data is request by customers, the accountant must retrieve and provide this information.www.eduinfobd.net

Thus, only auditors and accountants can enjoy access to this account. However, in a DLT, records are recorded and stored in a shared or deliverable account that access by all parties. Therefore, all accountants, auditors, clients, and regulators always have a copy of this ledger. Each record here is encrypted and automatically stamp at all entry times. Such record collections form a blockchain and hence this network is call a blockchain. The so-called cryptocurrency is trad using blockchain technology and Bitcoin is a leading and popular cryptocurrency with huge investors.

Benefits of Blockchain for Accounting:

For accounting professionals, blockchain offers some major benefits such as immutability and transparency. This is very convenient for any accounting firm if their records are accessible to all authorized employees. But there should be rules about how such authorized persons can access the records. Blockchains have smart agreements to incorporate these rules. Thus, according to experts, the next step for the blockchain accounting industry.

Big names such as Ernst & Young, Deloitte, KPMG, etc. have already started depositing money for DLT, and Deloitte also has 30 active blockchain prototypes. Companies such as IBM and Amazon are also providing powerful and scalable blockchain platforms; Accounting firms will follow in their footsteps before they know it.

What Advantages Can The DLT Offer Accounting?

To begin with, well-designed blockchains are powerful and fast databases;

You can only make mistakes when entering data in the blockchain.

Using an SMART Smart Agreement, an accountant can automatically combine multiple tasks with data, which is a very difficult task.

Improved efficiency has lower cost than efficiency and less error.

Blockchains are irreversible and fraud is very difficult to fix. To change a record, the change must be copied to all copies of the DLT at once, and this is not possible.

Due to the security provided by DLT, an organization will have less difficulty meeting the needs of the regulator.

Perhaps the biggest positive impact for accounting professionals is the power to reduce blockchain oversight. Smart contracts automate many auditing functions, meaning the auditor has less time to study records.

The main drawbacks of blockchain as an auditing profession are that many accounting software is still not compatible with blockchain technology. Another major drawback is that companies waiting too long to occupy the blockchain can become redundant.

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