Are you engaged in the accounting profession or an industry which requires a revolution in best accounting software? Are you wondering whether to use the blockchain accounting system or not?
If yes, then read on.
Blockchain has become the new buzz word in the accounting field. Especially, industries involved in the finance sector, are using this method for more effective and efficient accounting. It has been also termed as the revolution of the accounting structure.
Listed below are the ways in which blockchain can make accounting easier than ever.
- Error reduction – Any data when entered in the blockchain process will be recorded in the accounts throughout the chain. This will help cut down the human error in the accounts due to writing the same data again and again.
- Faster approach – It helps in faster and more efficient accounting. You can enter, edit and change data more quickly. Just changing data at one point of chain change it throughout the system.
Whenever a transaction takes place. You will record it in the local ledger. This will be automatically shared to all the copies of the ledger stored on all the devices involved in the chain.
- Less costly – The blockchain accounting process is less costly as compared to the traditional way of accounting. In this process, you do not need many people to enter data at different levels. Data entered at a particular point will be added throughout the system.
Same goes for any data to be removed from the system. You do not have to remove it from all the points. Removing it from one point will remove it from the whole system.
- Controls fraud – In a blockchain system you can be sure that the frauds will be less. As in this method, any manipulation done will have to be done on all the copies of the distributed ledger, which is practically not possible.
Moreover, it provides exceptional security to records. In this system, any change made to old data will be viewed and known by all. So, it is less likely that the old records will be manipulated.
Furthermore, in this system, changes can be done only if you have prior authorization for the same.
- Improved reporting and reconciliation – Preparing reports and reconciliation statement became easy after you introduce the stock chain process. In this, the method all the transactions with all the details are recorded in one place. This makes sorting and recording of journal entries easy and fast. You just have to click on the particular transaction and all the details about it can be viewed.
Note that you can view these details in any computer which is a part of the blockchain.
- Utilization of records – In this system, all the asset is audited at from time to time and the records of the same are maintained for the whole lifetime. You can always have a look at the old audits to prepare the new ones more efficiently.
- Better traceability – In this particular system as all the records of the product is maintained from the very first point of its origin to the last point where it is lying, till date. So, you need do not have to be worried about the attributes of the asset. You can look at the records and analyze the asset.
For instance, if a share is bought and sold, many times. You will come to know at what price it was bought, at what price it was sold, dividend, etc. for each time. This will help you have an idea about the share.
- Accountability throughout the year – In this particular method, the accounts are maintained in real time. All the transactions, namely, billing, invoicing, payment cycle, etc. are settled on that particular time. It cuts down or totally writes off many accounting processes you carry out at the end of the month/year.
Now you can take accurate decisions at any time of the month by taking a view of these accounting processes.
- Gearing up audits – Blockchain auditing helps to automate the audit process. It helps in faster and more accurate auditing. In this method, you need less number of individuals in your audit team than you need in the traditional method. They can track all the transactions fastly, review more process and reach at results faster with more efficiency.
This will leave them with more time to pay attention to other parts of accounting.
Blockchain, tracking system, is a boon to the stock market, banking, mutual funds, title, deeds, and so on.
You have many accounting and billing software which supports blockchain accounting.
Your accounts department will definitely be happy with the proposal of incorporating blockchain accounting method. So, think no further. Take the decision, change to the stock chain and utilize all its advantages. You will definitely like the way it revolutionizes your accounting system, making it easier and faster!!
Sanjay Darji is a Head of Digital Marketing at SoftwareSuggest. He has a strong knowledge of product marketing & used various digital marketing strategies to build the brand globally. His areas of expertise include performance management system, payroll, inventory software and ERP software. In his free time, he enjoys reading, spending time with friends and family.