Future of Small Business Accounting Software: Blockchain in Accounting
- Technology Blog September 17,2018
Today, technology seems to be getting advance surprisingly and it is expected to be tough in the coming future. If you’re running your own business, it becomes essential to stay up-to-date with all on-going developments in the world of technology. Staying up-to-date means not only to review suggestions but also ensure practical considerations. There are few industries that are mostly dependent on technology inventions especially finance department. While talking about accounting solutions, a single mistake can cost heavy. Small business accounting software is implemented to improve the speed and efficiency of your business accounts.
Executing different modern technology forms means you are empowered to enhance accounting business positively. An accountant has to perform different functions and services dependent on requirements. It includes monitoring business expenses, review receipts, taxes filing, and financial advice as well as guidance etc. Therefore, in the world of accounting, the responsible people are finding out new ways to enhance their services. Currently, Blockchain is considered as best small business accounting solutions.
What is Blockchain Technology?The blockchain is reorganized public record of all digital transactions. It is constantly growing and enabling the market stakeholders to monitor the entire track of the transactions of digital currency with centralizing recordkeeping. Each computer linked to network gets the copy of blockchain that may be downloaded repeatedly.
The blockchain is developed for monitoring of digital currency that is constantly used in different commercial applications. Record digitalization means you’re creating permanent records that couldn’t be changed/edited. Furthermore, there will be no doubt about the authenticity of the records because it can be easily verified by the whole community.
Though it may sound unfamiliar to you Blockchain is currently considered by a variety of industries as best small business accounting software. They’re getting advantage from the technological revolutions in different industries. In simple words, Blockchain technology is a form of digital data that is placed and maintained on every single transaction that is performed through cryptocurrencies. The most recognizable form of cryptocurrencies is usually known as Bitcoin. Every block includes some digital coding that contains the date of the transaction.
The data of transactions are kept secure in consecutive order and will connect to next transaction to complete Blockchain. Such formation ensures the association of every single transaction with the previous one along with time record i.e. date, time and year. We can simplify things by calling it a digital accounting solution with 100% and up-to-date data.
Advantages of Blockchain Accounting SolutionAfter reviewing the Blockchain technology in depth, if you hope it will pass without touching the accounting industry, time to re-think. The transformation of accounting is already performed. You’ll find IBM and Amazon offering scalable and flexible Blockchain solutions. In coming future, we’re expecting to have a lot of innovations in this specific industry. It is promising a lot of advantages to the small business accounting industry, some of them are discussed below:
Unbelievably SecureWhen someone talks about small business accounting software selection, they simply mean a secure solution to raise the protection of all calculations. In Blockchain technology, the first and foremost benefit is the proven security that keeps it worthy. All of the entries of Blockchain ledger are cryptographically wrapped and distributed. It will be almost impossible for someone to destroy or misuse them. So, it is virtually incredible to encounter any fraud for any individual.
Automate Audit ProcessesThe most complex and time-consuming part of the accounting industry is auditing process. Implementation of Blockchain tech; empower the accounting auditors with automatic data verification of all financial statements. So, it means a large amount of time would be secured that priory consumed by auditing. Along with time, the cost will automatically lower-down.
Definitely TraceableBlockchain technology offers traceable audit trials for the accounting industry. As said earlier, every single transaction is a part of Blockchain. These transactions are not only the storage of entry but also include a clear timestamp of every single transaction. It helps in speed up and simplifying different things.
Regulatory ComplainsTechnology is offering a simplified process and ensuring to most content monitoring demands. Therefore, regulatory establishments are rapidly embracing Blockchain technology. Such adoption is becoming an essential requirement in different crucial accounting industries.
Along with the unlimited benefits of Blockchain technology for businesses, like all other solutions it also has a negative impact. One of the most significant disadvantages is, it may divide the finance profession into two significant categories known as technical and non-technical. Your existing small business accounting software may not compatible with Blockchain tech. So, if you’re ready to adopt it, time to check the compatibility with the support of your reliable vendor.