By Analytix Editorial Team
Blockchain carries the potential to ring in transformation within any industry where it is applied, and not just in accounting services and financial operations where it currently helps enhance transparency and clarity in transactions. Its emergence is being watched with great interest because the requirement for a trustworthy application for conducting business transactions stays intact as businesses continue to grow outside physical bounds and technology rushes in to ensure a seamless interconnect between essential elements including employees, clients, investors, etc.
Blockchain answers to the search for increased safety and accountability in financial transactions, not restricted by physical boundaries of a single, controlling central intermediary.
Impact of Blockchain on CPA Firms
At its heart, Blockchain is a technology that lends transparency to accounting and financial transactions through verification of the actual exchange. All involved parties can view data, thus there is nothing hidden about the ownership of the transfer or exchange.
Blockchain will change the way all accounting and bookkeeping processes work, including transactions from initiation to reporting.
Where mentioned, value-addition could involve analyses such as identifying factors affecting the business’s financial health, both positive and negative influences on the business’s worth especially when considering mergers and acquisitions or a sell-out, etc.
Is it then just a matter of time before Blockchain is adapted and integrated on a larger scale? Actually, not just yet. A Gartner study says that through 2018, 85% of projects that do contain “blockchain” in their titles would not actually be utilizing it in their business delivery.
With terms like Bitcoins and Smart Contracts already making their way into business communication, isn’t it time businesses started implementing Blockchain?
To answer to these questions, exercising caution is important when considering implementation of Blockchain. For owners and founders of small to mid-size businesses, including CPA partners, as well as for C-level executives in established companies, it is vital to understand the difference between adopting the technology and being prepared for it. Gartner studies indicate that the change that Blockchain will eventually bring about will be enormous and businesses will need to be ready for it. It is said that its business value-add will grow to slightly over $360 billion by 2026 and surge to more than $3.1 trillion by 2030.
However, for decision makers within a business, the onus still lies on finding solutions that focus on challenges faced by the business. Technology alone, including concepts such as Blockchain, cannot resolve problems or cause challenges to disappear.
At Analytix Solutions, we work closely with small to mid-size businesses in diverse ways, including as their partners, to ensure operations are streamlined, challenges are addressed effectively, and technology and automation are implemented as needed. Our professionals bring vast hands-on experience and expertise to provide relevant solutions. This includes assessing the business for whether it is ready for new technologies yet or not. What do you think of this approach? What are your views on Blockchain implementation? Drop us a comment below and let us know your perspective.
Questions about what we do? Call us at 781-503-9004 or email us at [email protected].