The world has never been more ready for disruption. The latest, greatest technology is all too often predicted to change the world as we know it; cryptocurrency, artificial intelligence and of course, blockchain. There’s no doubt that the technology is capable of fundamentally altering the way we go about our daily lives; by allowing us to transact with each other, and subsequently share data in a peer-to-peer fashion, while removing reliance on third parties like banks or governmental bodies. All this was a double-edged sword because while it rendered bank vaults obsolete along with paper certifications and ledgers, it also took jobs away from people who had spent years working in professions that were predicated on being slower and fraud proof, like accounting.

Accountants will lose much of their work to artificial intelligence, but they can and should closely monitor the development of blockchain technology. Blockchain is a technology that enables crypto currency such as Bitcoin, Ethereum and Litecoin to exist. In other words, it’s an electronic public ledger. This open-source ledger records all transactions that take place within the network in chronological order. These transactions are encrypted and signed within the network.

The development of blockchain distributed ledger technology offers the accounting industry a new way to audit its records in real time. It is a revolutionary step that could change the face of accounting and financial reporting forever.

Nowadays, more and more companies are turning to blockchain to simplify bookkeeping and save time costs. This is especially true for auditing since the accounting methods used by most companies are outdated and have proven to be a constant source of errors. For this reason, the blockchain offers a unique solution that can eliminate many of the existing issues with bookkeeping, providing software developers the tools needed to create new solutions that can replace traditional accounting methods.

Accounting is one of the few professions that blockchain hasn’t been able to completely replace. While the tech world has been head-over-heels for blockchain technology in the past several years, it may still be a while before accounting professionals are replaced with blockchain technology.

Accountants are vital to businesses of all sizes. They ensure that every company pays the correct amount of tax and can help you lower your taxes as well. Blockchain technology has the power to shake up many industries and perhaps lead an uprising against accountants. Of course, this is speculation and not everyone agrees with it. Bitcoin is currently the most popular example of blockchain technology. It has disrupted the finance industry by taking payment processing offline and decentralized it.

The Possible Scenarios That Can Happen If Blockchain Replaces Accounting 

When blockchain first emerged, it was primarily seen as a new way of conducting financial transactions—for example, the bitcoin cryptocurrency. But its value as a technology runs much deeper than financial transactions, as it can provide secure digital agreement and execution without the need to trust anyone. This makes it ideal for settling and tracking provenance for high-value assets like diamonds, fine art or industrial machinery.

Accounting is an obligation for most of the businesses and individuals nowadays. having to collect, organize and store large number of financial records is not a problem anymore. there are many advantages of using new technologies. one of these advantages is their flexibility in every step of accounting activities. Nowadays people are more likely to choose blockchain as their bookkeeping tool.

Blockchain will be of no use to you if you don’t have an understanding of it. Unfortunately, this understanding is utterly lacking in a large percentage of the human population.  If a blockchain has no value, then how valuable are accountants? The two fields are inextricably linked; one requires an understanding of the other and vice versa. So as the technology continues to gain popularity, will we see an evolution in the accounting industry?

It has been rumored before that Blockchain will eventually replace accounting. As per research, it has been found out that over half of the business leaders are in favor of this replacement. In this context, we can talk about different scenarios on how blockchain can replace accounting completely in the near future.

  • Accountancy and Accounting Blockchain (Accounting Blockchain) The first scenario that comes to mind is a “traditional” blockchain-based accounting system where all of the accounting activities are recorded on the technology and not on any centralized database systems such as databases or cloud computing services which can be hacked or corrupted at any time (for example: Equifax breach).
  • In the case of an accident or fraud, all transactions will be available for every node in the network, but also everyone would have access to them without having to ask anyone for permission.
  • Blockchain has the potential to soon become a tool of choice for accounting professionals. Moreover, in the near future, Blockchain has the potential to be developed so as to support integrated global financial reporting by acting as an accounting system for companies. In fact, Blockchain can potentially act as a safe, global system through which accounting statements can be affirmed between all parties involved
  • Financial technology is making a paradigm shift in the banking system. Recent innovations like Bitcoin and Ethereum demonstrate the potential of blockchain technologies to provide unlimited business and financial applications in the near future. We have entered the digital age of finance, where accounting and finance professionals are fast realizing that their roles are shifting. It will take some more time for complete disruption in the domain on account of role overlap between bankers and accountants, their training and regulatory compliance requirements, worthiness of certifications, dependence on legacy systems and customers’ trust.
  • Blockchain technology is transparent, public and open source. Everything written into the ledger can be seen by anyone with an internet connection. This will eliminate the role of accountants in many industries. It is a safe, secure technology that has its place in the future of auditing firms. Accountants will be an important role for blockchain implementation.

 

Final Thoughts

Accountants are a record-keeping and financial management service who keep organizational information and documents. As a record keeper, the accountant will work to keep accurate records of the organization’s financial dealings. In this blockchain age, accountants may be replaced. But is the blockchain better than a professional accountant?

Professional accountants have been in charge of bookkeeping for a long time. But, new blockchain technology which uses cryptology to secure data and verify distributed ledger transactions is proving to be a highly viable alternative to these career accountants. In addition, experts predict that this promising innovation will not only completely change how your company handles accounting, but it will also greatly alter the way you interact with your clients.

Currently, the use of blockchain in accounting is merely an idea due to the fact that it hasn’t been fully implemented yet. But don’t underestimate blockchain’s potential to change this industry! It is a disruptive technology for sure. So, will blockchain replace accountants? Only time will tell us whether or not this will become a reality.

Blockchain is a disruptive technology with the potential to disrupt the accounting industry. Accountants serve a crucial function in the economy. They keep track of the flow of money and make sure that everyone pays their fair share. But when it comes to financial data, blockchain is a lot more secure and reliable than today’s database technologies. The life of an accountant can be difficult without this technology.

While Blockchain Technology is a very expensive technology, the potential benefits far outweigh the costs. The accounting industry is ripe for a blockchain revolution. We’re likely to experience such 10 or 20 years away from now but as time moves on, it is likely that a growing number of companies will move to using blockchain technology for their account functions.