5 Important Key points of Blockchain Technology to Accounting in 2020

 The benefits of creating a decentralized ledger are; all the transaction records whether small or big are updated and accessible to everyone in real-time, Blockchain technology uses the same "decentralized of the ledger".

In this article, we will discuss some important key points are given below that consider the effects of blockchain technology on accounting in the future. 

1. Smart Contracts

With the security of blockchain technology. "Smart Contracts" that automatically process invoices, bank balances, and other accounts are also made possible with absolute transparency.

2. Consolidated Bookkeeping

Rather than keeping multiple records, companies can log all their transactions into a join registry. 

3. Standardization in Auditing

Audit standardization refers to rules of conduct by which audit activities should abide, including audit laws, regulations, standards, guidelines, manuals, etc.

4. Security and Trust

Since Blockchain creates immutable standardization in the accounting practice; auditors will be able to verify larger amounts of data much faster. Conducting audits would also be much cheaper and easier. 

5. Less paperwork for accountants

In theory, blockchain will reduce or eliminate the dependency on paperwork in the future. For example, since the government can theoretically peek into a public ledger at any time.