If you study any finance and accounting related course, this article must be a gateway to change the way you work or running companies will be much more easier and efficient.
The benefits of creating a decentralized ledger is all the transaction records whether small or big are updated and accessible to everyone in real-time, Blockchain technology uses the same ”Decentralization of ledger.”
Some Important key points are given below that considers the effects of Blockchain technology to accounting in the future.
Smart Contracts
With the security of Blockchain technology, “smart contracts” that automatically process invoices, bank balance, and other accounts are also made possible with absolute transparency.
Consolidated Bookkeeping
Rather than keeping multiple records, companies can log all their transactions into a join registry. According to David Lyford-smith, technical manager at the institute of chartered accountants in England and wales “you could just say we could put the whole accounting this one ledger of perfection.”
Standardization/ Security & Trust In Auditing
Since, Blockchain creates immutable standardization in the accounting practice. Auditor will be able to verify huge amount of data much faster. Conduction audit would be much cheaper and easier.
Less paperwork for accountants
In theory, Blockchain will reduce or eliminate the dependency on paperwork. For example 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- fairly.
I've never done accounting but it seems to be of great interest, I must try