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  • What’s the state of blockchain in the accounting industry today?

    It truly is in a disruptive state right now due to many different reasons, such as accountants needing to learn about the tech to new technology making the industry more transparent. The blockchain has the potential for being the basis of many accounting systems, as it is essentially an accounting-based technology. However, it is in development mode in the accounting industry, though, as we are waiting for technology to take advantage of what the blockchain do for the industry. A few examples of what the tech can do is virtually eliminate the need for reconciliations, proof of current assets and less need for auditors.

    What’s the #1 trend that will shape blockchain in accounting in 2019?

    Education and money will shape blockchain in accounting, and it all starts with the customer. The client that has a demand for the use of the blockchain in their business will force large accounting firms to adapt to survive. Accounting firms will see the growth potential, and thus spend money on education and resources to adapt. In fact, at a recent CPE I attended, they spent an entire hour of the day talking about the blockchain in the accounting industry.

    What’s the #1 challenge to blockchain adoption in the accounting industry?

    The blockchain will, as it already has, have to fight against established systems already in place. Large accounting firms will push back against the it at all costs because it is different, and it hurts their comfort zone. They feel their cash flow can be in peril, which it is, and they don’t like it. I experienced the same thing when people started using Quickbooks Online. Such accountants refused to use it, while others, like myself, adapted and understood the disruptive technology.

    What’s the #1 benefit for blockchain in accounting?

    Public trust is the largest benefit due to the transparency that it offers. Accountants are highly trusted, but corporate accountants often get a bad rap because they are more biased and try to help the company show as much profit as possible. With the new technology backing all accountants, the trust in the industry can be solidified across the board. Also, embezzlement and fraud in “cooking the books” becomes much more difficult to achieve and it becomes easier to detect.

    What’s the future of blockchain in accounting?

    The larger accounting firms want to say it has no future in accounting, but the smart ones understand that implementing the new tech in accounting can put them on the cusp of a new disruptive technology. I see accountants gaining the necessary education on how to use the blockchain effectively, such as using it to securely allow other users to access needed information. While it may eliminate the need for as many bookkeepers and such, the role of an accountant will always be necessary to effectively analyze, interpret and implement the results of the financial statements.