Question

Pick one new technology impacting accounting systems today or in that future that we have already discussed. Discuss the benefits and the disadvantages of moving to this new technology. Please include in your discussion research “how it works” and “how it will be used” examples of companies that are using this technology accounting system. Please do not include a definition of what it is, but rather what it can do!

Answer 1

Blockchain is one of the technology which affecting accounting system today and also future of accounting jobs

Blockchain is an accounting technology. It is concerned with the transfer of ownership of assets, and maintaining a ledger of accurate financial information.

The blockchain technology has the potential to shape shift the nature of today’s accounting. It may constitute a way to vastly automate accounting processes in compliance with the regulatory requirements.

It can also enhance the accounting profession by reducing the costs of maintaining and reconciling ledgers, and providing absolute certainty over the ownership and history of assets.

Blockchain could help accountants gain clarity over the available resources and obligations of their organisations, and also free up resources to concentrate on planning and valuation, rather than recordkeeping.

Blockchain can also increases in the scope of accounting, bringing more areas into consideration that is presently deemed too difficult or unreliable to measure, such as the value of the data that a company holds.

Advantages of blockchain in accounting

· Minimize the fraud

Since blockchain is an open-source ledger, each and every transaction will be made public and hence there will be no chance of fraud taking place. The virtue of the blockchain system will be constantly monitored by miners who keep an eye on all kinds of transactions around the clock.

· Financial efficiency can be improved

The blockchain technology lets individuals and companies make transactions directly to the end user without involving any 3rd-parties. This greatly enhances the financial efficiency in every nation and lets people be less dependent on financial institutions and/or banks. Not only will this save a lot of money for people in terms of fees but also other related expenses with utilizing banks.

· Blockchain help to make instance transaction

The virtual currencies/digital currencies that are based on blockchain offer transaction times that are 10 X faster than the usual bank ones. For instance, if a transaction has made to some person who has a different bank account then it will take minimum two days for the transaction to complete. However, blockchain transactions will be usually completed in just a few minutes.

· Error can be reduced

The greatest opportunity for error using blockchain is on data entry. Once data is in the chain, smart contracts will make many accounting functions automatic, reducing human error.

Disadvantages of blockchain

· The negative impacts of blockchain will cause the accounting profession can be divided into two main categories: technical and non-technical.

· The capabilities of distributed ledger technology will inevitably force accountants to change the way they work

· most accounting software is not compatible with blockchain technology. So even if you are ready to put your accounting firm on a blockchain, your record- keeping software probably isn’t interested in playing along

Example of companies

Deloitte, Ernst & Young, KPMG and PwC, are already investing heavily in DLT technology, and Deloitte has at last 30 blockchain prototypes up and running