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The Impacts of Blockchain on the Accounting Industry

Blockchain has found its way to virtually every industry—travel, insurance, education, banking, investing, government, real estate, and many others.
Companies all over the board are incorporating it into their business processes. While it has become famous for powering crypto, the tech itself has broader applications.
Since it offers us a new, incorruptible way to store, share, and record all sorts of data, are blockchain and accounting a match made in heaven?
Interested in reading more articles on blockchain use cases? Click here!
The Potential
Claiming that blockchain is a piece of tech that is based on accountancy wouldn’t be a stretch. Blockchain provides a method for reconciling accounts and recording cash flow. It also records transactions and stores assets.
To meet regulatory requirements, the accounting industry has relied on paper trails to perform transactions and accounting functions.
Accountants have started to use cloud-based technology as well, but paper trails still dominate the world of accounting.
When reviewing “the books,” auditors need to see these paper trails. And, “cooking the books” is an age-old problem, so it may be time for a new solution.
Blockchain offers CPA firms and accountants an opportunity to streamline their audits and processes since it provides a transparent and immutable record of all data. It helps ensure that the data is truthful and accurate.
Reduced Fraud
Blockchain can be leveraged to improve traditional accountancy and fight accounting fraud. It’s challenging to perpetrate fraud using blockchain due to its immutable nature.
Modifying a record on a blockchain is highly infeasible as the actor would have to make the same change on all the copies of the distributed ledger—simultaneously.
Reduced Auditing
Many accountants are excited about blockchain simply because it can lead to much fewer audits in the future. Auditors can automate most auditing functions through the power of smart contracts.
Auditing can be fast and easy thanks to the inherent traceability of everything that is recorded on the blockchain. And, since everything is automated, blockchain can reduce the time an auditor needs to spend checking “the books.”
Improved Regulatory Compliance
Agencies must go through a lot to satisfy regulatory demands. Blockchain can help take the burden off thanks to the enhanced security it offers. Blockchain may even become mandatory in some inancial sectors as more regulatory authorities embrace the tech.
Easier Reconciliation
The end-of-month chores may become less of a burden. Accountants can start using smart contracts to automate reconciliation tasks.
Reduced Errors
Data entry is perhaps the area where blockchain can help the most. It’s where chances of human error are highest. Blockchain can significantly reduce human error by making most accounting functions automatic.
Improved Efficiency
Blockchain can be designed to be much more efficient than legacy accounting software. It’s more challenging to get data into and out of accounting software. Blockchain is a much faster and more robust database.
Reduced Cost
No matter the system—a reduction in errors and an increase in efficiency results in reduced cost. When making the switch from conventional accounting systems to the blockchain, accounting firms can expect to see cost savings quite quickly. The initial adoption costs should be well worth it.
Will Accountants Lose Their Jobs?
Most people are concerned about their jobs whenever they hear news about a new, groundbreaking piece of tech in their industry. In some sectors, there has indeed been some cause for concern.
For instance, some investment brokers have been losing clients since individual consumers can now access the data they need to invest on their own.
But the responsibilities of accountants won’t change. Nevertheless, blockchain will still disrupt the industry. Accountancy firms and accountants will be able to provide their clients and their employers the security and safety of all records.
Auditors and everyone else who has to have access to those records (e.g., the SEC) will be able to access them. The need for accountants won’t disappear, even though their roles will change.
Before they enter the information into the blockchain, businesses will still need to hire good accountants to interpret and categorize that information. Accountants will be the ones to implement and maintain the new system. So, no, accountants won’t lose their jobs.
And, neither will bookkeepers. Nor most other employees in the industry for that matter. Someone will still need to oversee accounts receivable, prepare invoices, oversee contracts for payments, and track income and outflow.
Blockchain makes things better, but it still requires some work. Someone must enter payments, orders, and contracts into the blockchain. Blockchain will make the bookkeeper’s dream come true—it will provide transparency, efficiency, and record permanency.
“The Big Four” as Early Adopters
Because of its potential uses, the big four firms have started investigating the possible applications of blockchain in accountancy.
KPMG
To help financial companies explore the potential of blockchain, the firm launched the “Digital Ledger Services” program back in 2016.
They are also a member of the Wall Street Blockchain Alliance. Moreover, KPMG has teamed up with Microsoft to identify new blockchain applications.
Ernst & Young
The firm launched the “Blockchain Analyzer” in April 2018 to help their auditors analyze and review blockchain applications. They were also the first to start accepting Bitcoin as payment.
PwC
The firm is one of the most active professional services enterprises in the world of blockchain technology, having started a dedicated program to train over 1,000 employees in the use of blockchain and cryptocurrency.
PwC has also announced a blockchain validation and auditing solution for cryptocurrency.
Deloitte
Deloitte was one of the first big brands to get on board with blockchain. Last year, they unveiled a mobile platform “Blockchain in a Box” to help businesses demo blockchain solutions.
The Bottom Line
Blockchain is here to stay. Applications of blockchain will only continue to increase. It will change the way accountants operate. Accounting won’t become irrelevant; it will become more efficient.
The same way computers and the internet have changed workplaces across all industries, blockchain will provide solutions to industry-wide issues. Businesses are currently re-evaluating their business models and assessing the need to implement a blockchain solution. However, it’s essential to keep in mind that problems should not be created to implement blockchain. On the contrary, a blockchain solution tackles pre-existing issues across a variety of sectors in different industries, proving to be extremely powerful in those cases. For sectors that have found a solution in other technologies, there may not be a need for the implementation of a DLT.
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Chanukah soiree Tradition Returned to Beverly Hills After a Gloomy 2020
focussed by the JEM Center, went by Rabbi Hertzel Illulian, applying the patronage of the City of Beverly Hills Mayor, mr. Robert Wunderlich, countless people gathered in downtown Beverly Hills to celebrate the lighting of the 8th Chanukah candle.
With time-honored holiday music and food, This year Chanukah event, Of charged holiday spirit, Had a greater meaning for Beverly Hills notably and America in general; a return, much, To normalcy after a painful 2020 year.
The Chanukah Menorah Xmas celebrations tree plan a game night in the last day of Chanukah, In Beverly hills, California Photo credit Nurit GreengerThe concept of the Word ChanukahThe Hebrew word Chanukah means dedication. Chanukah is not just about lighting candles, One each night for eight nights. It is not about eating greasy doughnuts filled up with yummy jam or potato pancakes, The familier Jewish latkes.
not, Chanukah (properly Hanukkah) Is about saving and resaving oneself to a life by God Word. It is about the Jewish thought that every human being is supposed to see himself or herself as a temple, A retreat of God values, His word spectacular light, Expressed in the holiday lights that are spread around.
As the larger story goes, The history of the holiday is tied to the time when the land of Israel existence was in a state of doubt.
After the Maccabees revolted through the tyrannical Seleucid Empire that occupied their land, The successful Maccabees found enough oil to last one day to light the Temple Menorah. incredibly, The oil held up for eight days, for a specified duration to purify more oil and thus 8 days of Chanukah.
Ever since the Jewish people light one candle on each of the eight evenings of the holiday venerating God provision and overcoming darkness.
Chanukah is thought to be a happy holiday. As the customs evolved, During the xmas eight days the Jewish people attend holiday concerts and plays, trading gifts, And have family dinners to celebrate the xmas. Today in Beverly Hills the city extended Jewish community did except, Celebrating the holiday to display liberty to all the Jewish people wherever they are.
Rabbi Illulian And supporter Tod Silver at the Chanukah Menorah in Beverly Hills Photo credit Nurit GreengerFor Readers not familiar with the History That Created the Holiday of ChanukahThe story of Chanukah is not recorded in the Bible, Rather it is shown in the Apocryphal books of 1 2 Maccabees. Messiah Jesus observance along with Feast of (Chanukah) may be found in John 10:22 23. Came from north of manchester charmdate and defeated Egypt. Before he could take advantage of the of his victory he was compelled by powerful Rome to withdraw. Angry at this change, He came against the small country of Israel.
He desired to move against Israel since its location was strategic, A land bridge registering Africa, china, And the eu. The one who dominates Israel often has a strategic point of control at the center East.
Antiochus Epiphanes was obsessed with delusions of deity and is regarded as one of the most anti Jewish, anti Israel, Anti God rulers in history. He attempted to destroy Judaism by making its observance illegal.
Antiochus tried to Hellenize Israel. He looked on Hellenization as a way of integrating the Jews into his empire socially in so doing unifying the empire.
His goal was to defeat Israel armies and humiliate their God, Thereby putting together them into Greek culture (1 Macc 1:41 64; 2 Macc 6:1 11).
a history of Chanukah, The rededication of the forehead in Jerusalem, Is purported in the books of the Maccabees. The ancient greek language king Antioch IV Epiphanes, Who reigned over over Israel, Placed a statue that will Greek deity Zeus in the Holy Temple in Jerusalem, that had been an of desolation (1 Macc. 1:54, Daniel 9:27)
Defiling the Jewish forehead, The idolater moreover sacrificed pigs, A non Kosher animal on the forehead altar. In an unequalled attempt to force the Jewish people to assimilate into the Greek Hellenistic culture, Sabbath, Circumcision, And study of the Torah were forbidden and punishable.
often times though, The judaism in Jerusalem, included in this many priests, Had already adopted Greek world and became Hellenized. But those who in the land adhered to their Judaism and thus resisted.
A group of Jewish rebel warriors of priest farmers from the city of Modi known as the Maccabees, Started a revolt against the Greeks who occupied their land and dishonored their Temple. Under Judas Maccabeus control, The Jewish people fought the Greeks and became popular in re taking Jerusalem and expelling the Greeks from the city.
The rededication of the temple reception took eight days. The temple was ornamented with crowns and bosses of gold and was generously lit. and after that, The feast of the a commitment has been celebrated yearly. according to Christian tradition, Jesus of Nazareth also celebrated the Feast of the a commitment in the temple (kim 10:22).
using the Talmud, The central text of Rabbinic Judaism and the primary orgin Jewish religious law, When the Maccabees entered the Temple and wanted to do light the seven branched candelabra the Menorah, No oil was ritually fit for usage for the Menorah. They did within the find a small jar of ritually pure oil, supposed to last one day. Miracles and tradition do go hand in hand and a miracle occurred. The Menorah burnt for eight days on this little oil, Which lasted good enough to produce new pure oil.
As President Ronal Reagan said in 1983 Chanukah wedding reception: Unity is when eight separate branches of the Menorah come as one and because the Menorah light grows stronger, With one candle being lit evening, We can feel the flame of freedom burning in the heart and this flame should inspire people all around you. Let the warm lights of Chanukah spread the spirit of freedom and reach comfort and sustain every individual. get together, December 5, 2021, 1 Tevet 5782 in the Hebrew diary, The City of Beverly Hills gave Chanukah additional meaning, It is called continuity in all aspects of the word.
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