​Blockchain, the new technology associated with cryptocurrencies, promises to bring about a substantial change to industries such as accounting and auditing. It is said that in future it will be as significant to the accounting industry (through automation and streamlining of manual processes) as the software that is currently being utilised to record and reconcile financial transactions.

What are the benefits of blockchain?

Working as a global and public ledger, blockchain cannot be tampered with or corrupted even if you're the owner of the accounting system. This is due to that fact that it doesn't have a central database. This permanent cryptographically sealed document creates a trail of financial DNA allowing information to be stored across a number of computers, making hacking technically impossible while allowing participants to verify and audit transactions without a third party (like lawyers etc.).

Real-time updates

Furthermore, it is perfect for financial and accounting applications as information is updated in real-time and each 'block' or transaction is time-stamped. In addition, data cannot be deleted as changes and all amendments are transparent. This assists in curbing any fraudulent activity.

Faster audits

According to Charles Pittaway, Managing Director of Sage Pay, "transparency and standardisation will enable auditors to verify many of the records they need to look at automatically. This could, within the next 10 to 15 years, reduce the manual tasks involved in auditing, though it is likely that human auditors will still be needed to sign off audits and provide advice around complex transactions". This way, audits will become faster, simpler, more reliable and less prone to error.

Simplified transactions

Blockchain will simplify financial transactions between a company and its supplier. Rather than keep and reconcile records of the same transaction, the two parties will record them on a shared blockchain ledger, allowing them to streamline invoicing, payments and other business-to-business transactions. "Other future applications for blockchain in accounting might include authenticating the ownership and history of an asset the company is buying or selling," Pittaway mentions.

While automation is inevitable for accountants and auditors, Pittaway says there will still be a demand for financial professionals and practices as clients will still require strategic advice in numerous industries.

Are you looking for a Finance job, or a Contracting assignment? Contact Network Recruitment, your trusted partner in specialist IT, Finance and Engineering placements for 30 years.