Will technology change accounting as we know it?
Modern innovations in tech have changed the way we operate in almost all other fields of various industries. When it comes to economics, more precisely accounting and finance, a lot of professionals are oblivious to the benefits current technologies can bring to the table. By dedicating themselves to the traditional ways of keeping financial records, they risk missing out on the new opportunities and quality of life the future offers.
With the rising popularity of digital crypto-currencies like Bitcoin came a new way at how we observe monetary transactions and trust in digital exchange. What sparks the imagination of forward-thinking accountants is the technology that secures our online dealings – the Blockchain.
Along with those two, a rise in new accounting software is on the horizon that will cut time and increase the window for better and smarter decision making. In this article, I will list a couple of new trends emerging in tech relating to accounting and how they will change the game.
Roaming around different sets of data looking for errors and jumping from file to file seem all too familiar to anyone that has done some accounting work. Everyone’s dream is to have one file that holds all the relevant data. However, this creates problems with the integrity of the data and its security. If we were to put all our data in one place, we risk getting exploited by hackers.
Currently, there are new accounting programs in development that offer decentralized platforms for your information while compiling it into a single piece of data for use. The programs are specifically designed to combat exploitation via manipulating the security system. The additional benefit is that access to certain data can be obtained with ease and reliance because as mentioned before – decentralized platforms are impossible to hack.
The Government Involvement
The world of Central Banking won’t let this out of its grasp now that crypto-currencies have become such a large trading stock. Bitcoin has risen up to a monstrous $15,000 per coin value, which is crazy beyond belief. Such a comparative value makes Bitcoin easily the most valuable currency on the planet, by far, without competition. Again, it would be foolish to think that a government of any country would say: “Yeah, I’ll let this one go, nothing to see here’’.
Even though we are looking at new regulations when the governmental agencies start regulating the market there are upsides with the upcoming limitations to this currently almost completely free market. Once the agencies have access to all the data, they can effectively start monitoring for malicious activity on the market such as fraud, terrorist funding, and money laundering or just financial instabilities in general and try alleviating such problems.
The blockchain is a technology that can be perceived as a ledger keeping track of all financial exchanges that occur within a market. The key aspect of this lies within the means of power distribution within the ledger itself. The system is open source and decentralized, the more players are involved – the more stable it becomes.
Experts at Linleobeak have said that auditing using such a technology can deliver results in a more accurate, more reliant and faster manner than ever before. The benefits reaped from this approach allow for the professionals to make better and more informed decisions for everyone. In my opinion that is exactly what the doctor ordered.
These are just a couple of angles changing the world of accounting. Each year new ideas spur into new technologies that branch out interesting solutions. The Blockchain aspect is just one part in this huge trend of accounting going completely digital and it has already created endless talking points around it.
With so many developers dedicating themselves to projects regarding finances specifically, what will be the next thing to reap from the benefits of this new era is unknown to most. However, some say that this is just the tip of the iceberg for accounting and technology.