The Future Of Blockchain In Accountancy

Digital technology has influenced accounting but has involved replacing analog tools with similar digital counterparts. With the advent of new technology  blockchain, accounting is being changed on a more fundamental level. Here are some facts about the and how it will influence accounting in 2021 and beyond.

A Direct Connection

Blockchain is a new complex model which accounting should understand the following: maintaining a ledger of financial information and transferring the ownership of assets in a safe and viable manner. A distributed Ledger is baked into the design of blockchain technology which ensures the confidence of everyone involved, and a strong cryptographic basis shows that when implemented properly, the blockchain technology offers unbreakable protection. For accountants the benefit of this technology is very clear even if the technology is a bit elusive:

Automating transactions with less error in data on both sides of the transaction.
Less fraud and more trust in transactions.
Increase in transaction security and less bad data.

Limited But Growing Use

The use of blockchain in the financial field is still largely investigative with nearly all major financial organizations exploring how to best implement blockchain technologies into their infrastructure. Tech giants have been traditionally tied to the financial industry are beginning to roll out various products. Accounting & Finance departments and functions don’t need to keep an eye on developments within the organization on blockchain technology.

Effects On Audits

As an accountancy expert, you’re likely relied upon for your skills in keeping  records, ascertaining standards are met, and dealing with rules and regulations. With the trustworthiness of blockchain technology, it’s having an impact on how auditing is done. Having an understanding of how blockchain technology affects audits is important. Accountants with blockchain experience can serve as  consultants by helping their clients navigate both implementation and regulatory issues related to blockchain technology. The automation of auditing allows for bookkeepers and accounting professionals to increase their advisory services to assist in interpreting results and train clients. In addition, add-on tech and services will be needed and created.

Blockchain will give rise to potential new roles for accountants and auditors:
Auditing smart contracts and oracles
Being a service auditor for a blockchain used by a consortium of companies to ensure the controls on a blockchain
Serving as administrator of a blockchain to permit access
Performing an arbitration function to settle disputes

Increased Demand For Crypto Currency

Crypto currency is a complex topic with the nature of decentralization meaning there will be a number of regulatory issues accountants will have to deal with. Governments are reluctant to fully embrace the financial and monetary changes that they can exert little control over. With the widespread use of crypto  currency among organizations, this means accountants need to be able to work with clients who invest or trade crypto currency, and having some knowledge of blockchain technology is essential for understanding their behavior.  The net effect of this rapidly increased usage of blockchain in financial transactions has created a huge demand for interpreting and  understanding tax effects of blockchain-related transactions.

Replacing Accountants?

The blockchain provides a high degree of trust when implemented correctly, which is why accountants worry this will reduce demand for their traditional accounting work. With blockchain comes a number of additional demands such as becoming more and more embedded with mainstream finance. Along with data analytics and machine learning, blockchain will make some tedious tasks easy to automate, but accountants will be needed to ensure accuracy and provide the analysis of the information their employers or clients need. More expertise will be needed than ever to analyze financial results rather than focusing on the mundane tasks of reconciling and verifying transactions. Blockchain technology is here, and accountants need to keep up to stay on top of their field.

Custom Blockchain Development Solutions

What Is Blockchain Technology? Blockchain is a method of recording information that makes it impossible or difficult for the system to be changed, hacked, or manipulated. A blockchain is a distributed ledger that duplicates and distributes transactions across the network of  computers participating in the blockchain.

Enjoy increased security, efficiency, and transparency with custom blockchain application development, integration, and adaptation from top notch providers at a fraction of the cost. XBlock Consulting has partnered with the best solution providers that will meet your business needs.

Blockchain Development Process

Our Team Is Optimized To Meet Blockchain Industry Changes

Blockchain Consulting – We start by identifying your company’s blockchain potential. We cover all areas through market research, feasibility studies, assessment analysis, blockchain platform analysis, preferred tool selection and feature prioritization.
Experience & Design – User preferences play a critical role in technical design. Based on system blueprint design comprising technical components, our designs produce seamless user experiences.
Enterprise Blockchain – Our developers help formulate and build enterprise-grade applications that are robust and ready to implement for maximum ROI. This is achieved from ideation to design and development.
Blockchain Deployment – Harness the true power of blockchain technology by accessing the platform you need at the right stage. Deploy permissioned and public blockchain in your cloud environment as well.
Blockchain Maintenance – We will help support your issues however critical and minor they are with our monitoring system for your OS release, 3rd party upgrades and new releases. We assure you peace of mind.

Migration & Upgrades – To reduce any downtime and keep your processes running smoothly, we transfer your existing operation to blockchain by producing a roadmap that migrates, tests and updation.

Why is Blockchain the Future of Hybrid Projects?

Security is the leading reason enterprises opt for custom blockchain application development solutions and blockchain app development company. Scalability is a major pain point when it comes to the future of blockchain usage. The idea of hybrid solutions can solve many issues related to scalability, which once was a known limitation. A fully functional hybrid blockchain which seamlessly integrates a public chain with a private network is a great achievement. A hybrid blockchain comprises a permissioned blockchain with a public blockchain, allowing entities to enjoy secure background transactions with associates while allowing consumers to access product information on an open ledger.

How Secure is a Blockchain Development Platform?

Blockchain development platforms are relatively far more stable and secure compared to any other. Blockchain can also be hacked like other platforms, however every change doesn’t go unnoticed, and any unsolicited action is picked up. Enterprises opt for blockchain development platform services because they ensure better security compared to other technologies. Living in an age where cyber security has become ever-so-important for personal, corporate, and national security, blockchain technology helps solve a great many issues related to security.

The Key Features of Blockchain Technology