Accounting is not considered an innovative field, in-fact most of us would describe it is as quite the opposite; dry, frustrating, pencil-pushing work. However, the world is changing faster than ever with new introductions of all kinds of technologies with yet untapped potential - one of those is blockchain technology!
Recently the Accounting Blockchain Coalition announced they are forming five working groups aimed at helping the creation of global accounting standards, the first aim: devise plans for regulators to gain familiarity with blockchain's potential within the industry.
"[The groups] are there to support the regulatory bodies and standard setting bodies around the globe and help them, advise them to deliver this technology throughout their institutions."
Governments around the world have been caught grossly under-prepared when it comes to technological advancements and with blockchain that's no different with regulators only relatively recently making public statements about regulating blockchain; meaningful large scale regulations including in the accounting space appears to be several years away at least. With that in mind we find an industry that is required to self-regulate which for many is one of the strongest draws of the technology.
PwC, Deloitte, Accenture, SAP and Grant Thornton are all at the forefront of tapping into the potential of blockchain when it comes to accounting.
PwC, for example, sponsored the ID2020 event held at the United Nations last week, and one of its principals, Grainne McNamara, is increasingly being recognized for her support of public blockchain technology like that which powers bitcoin and ethereum.
McNamara highlighted "multiple live engagements" PwC is currently undertaking to explore the role blockchain could play in the accounting industry.
"Supply chain is getting the most attention. Every single client we sit down with we can absolutely find a [supply chain] use case that provides value to the client and their customers."
An aspect of blockchain technology means having the ability to hold others accountable, Iddo Bentov
Part of that collaboration on blockchain means having the ability to hold others accountable, according to Iddo Bentov, co-founder of the Initiative for Cryptocurrencies and Contracts (IC3), who spoke at the conference.
"Right now, in the real world, there is no decentralized system where everybody has to be held accountable."
According to Joe Lubin (Founder of ConsenSys) added some ethereum-based solutions, such as triple-entry platform Balanc3 even relatively basic accounting tasks can be performed with accountability in mind.