neoaccounting

Among the many disruptive technology trends impacting the way we do business, blockchain is one that is less well known within the accounting community. However, given its potential impact, blockchain is certainly not a trend that accountants can afford to overlook any longer. Defined as an open, distributed ledger, blockchain technology records and verifies transactions without any trusted central authority. The technology itself exists as a file that maintains a continuously growing list of ordered records called blocks. Each block contains a timestamp and a link to a previous block using a “fingerprint.” Blockchains are resistant to modification of data and cannot be altered retroactively. Here are some potential uses for blockchain in accounting and audit: • Traceable audit trails; • Automated audit processes; • Authentication of transactions; • Tracking ownership of assets; • Development of “smart contracts;” and, • Registry and inventory system for any asset, ranging from...