Best known as the technology that underpins the Bitcoin currency, Blockchain is, by all accounts, transformative.
The finance industry is buzzing with the opportunities that Blockchain could provide in terms of how the global economy works and how businesses record transactions.
Essentially, Blockchain works as a global and public ledger, without a central database that can be tampered with. It is a permanent record that cannot be corrupted, creating a trail of financial DNA.
The excitement is understandable. Blockchain has the capacity to revolutionise the finance industry, bringing the ledger into the digital age. In accounting that means all transactions relating to a business could be logged in an internal Blockchain and recorded centrally, allowing auditors or regulators to inspect a business’s books in real-time.
At Sage, we anticipate Blockchain will further disrupt the world of accounting. Businesses currently spend a lot on accounting, auditing and compliance, in terms of both time and money. Blockchain could put an end to all that.
Everything that is on a company’s books could occur on the Blockchain, leaving a true record of its finances. Accountants could access that information at any time, knowing that it is accurate and up to date. It would no longer be necessary for a third party to confirm the veracity of that financial information.
For larger businesses, rather than hiring auditors to compile a complete view of all transactions and verify their accuracy, they could be logged on an internal Blockchain, and be recorded centrally. That would allow external auditors or regulators to inspect that company’s books in real-time. The accounting profession as we know it would be transformed.
Blockchain looks certain to change more than just the world of accounting and finance. It is anticipated to transform how governments provide services to citizens, collect taxes, deliver benefits, issue passports, and ensure the integrity of public records.
It could also be used to improve health care by authenticating the delivery of services and allowing providers to share patient records securely and accurately.
Increasingly, the world we live is becoming more real-time; from the way we do business, to the way we live our lives.
Technologies such as Blockchain and real-time accounting solutions like Sage Live will make sure the accounting profession is in the vanguard when it comes to operating at the speed of now.