Blockchain, a Threat as Well as an Opportunity for Conventional Accountants
It is increasingly becoming important for people to have an idea of Bitcoin and blockchain technology. With Bitcoin gaining legal status in various countries and the ever-growing implementation of blockchain technology across different industries, it is now important for those working in finance and accounting line of work to be prepared for the upcoming shift in industry trends.
A recent article on one of the resource sites for accountants has stated few reasons to present a convincing case about blockchain to its community members. Bookkeeping is one of the most important regulatory requirements for businesses everywhere. Proper accounting of revenues and expenses will not only ensure compliance but also makes it easier for the business to keep track of the company’s health and activities.
The article states the various properties of the blockchain, including its open source nature, transparency, and immutability. While its applications range from healthcare sector to insurance, it could definitely have a lot of implications for the accounting industry. One such implication will be on the double-entry bookkeeping — a practice followed religiously in accounting. Owing to their transparency, the use of blockchain for transactions will automatically create entries on the digital ledger that can be verified independently by both parties to the transaction. The whole process can also be referred to as automated bookkeeping.
Similarly, the transparent nature of blockchain will make way for impartial auditing, with or without an auditor as it ensures that they don’t overlook minor discrepancies in the books. It will also eliminate the conflict of interest otherwise faced by the auditors who are paid by the businesses to look into their books. While the article does raise concerns about the accountants’ job security, the implementation of blockchain will also open up new roles for accountants, in the capacity of consultants who can help companies draft and implement financial strategies as the blockchains can only record transactions and not analyze them like humans.
In the end, accountants and auditors can stay in business and even profit by keeping up with the blockchain revolution and adapting their business to changing needs of the industry. Those who start exploring opportunities surrounding blockchain technology stand to gain a lot in the coming years.
Ref: AccountingWEB | Image: NewsBTC