40,350 new accountants were hired in CPA firms, a figure that has been continually rising since the 2007 financial crisis, according to the Journal of Accountancy. This figure points to the growing need for financial experts in the country. Despite these numbers, there’s a huge technological gap when it comes to businesses adopting new technological trends like blockchain technology and how it’s set to impact the accounting industry. There’s no doubt that cryptocurrencies are changing the way businesses handle transactions. Apart from keeping up with blockchain technology and changes that impact business operations like the effects of the Trump Tax Reform, businesses need to learn fast and be ready to embrace new technology.
Here are reasons why accountants of the future in different business sectors need to embrace blockchain technology.
Growing Interest in Cryptocurrencies for Business Transactions
Over half of organizations in the U.S. alone have expressed some interest in using cryptocurrencies for business transactions. Despite the widespread fears of the blockchain technology being compromised by DDos attacks, it’s expected that businesses of the future will embrace blockchain technology in key departments like accounting where transparency in transactions is set to be the key driver for mainstream adoption. For business accountants, this means staying up to date with the cryptocurrency trends and changes happening now and in the coming years. Cryptocurrencies are not only applicable in accounting, but also in other key areas like processing of online-based transactions like ticketing for events.
The Potential to Serve as a Secure Accounting Information System
Over the coming years, it’s expected that blockchain technology will end up replacing current accounting procedures, as well as the clearing and settling of business accounts. As cryptocurrencies continue to spark a revolution in the business world, accounting firms are faced with a constant need to be in the know. The good news is that blockchain, pushed by the adoption of cryptocurrencies, has the potential to serve as a secure accounting information system of the future. Accountants need to embrace this fact and understand how blockchain is set to disrupt the accounting industry. It can provide a more durable and transparent framework for tracking and measuring business assets in real-time, and to ensure smooth business operations.
Cryptocurrencies are Here to Stay
With more governments, regulators and even businesses embracing blockchain technology and the use of some cryptocurrencies like Bitcoins as payment options, it seems certain that it’s only a matter of time before cryptocurrencies for business on a mainstream level become a norm. With its great appeal, blockchain is even considered an accounting technology. As businesses adopt the use of modern accounting systems that use blockchain technology, accountants will end up spending less time doing complex tasks like reconciliations and bookkeeping, and instead focus their time and energy on decision making and the interpretation of data.
It’s easy to see why accountants of the future need to educate themselves about cryptocurrencies for business transactions. The accounting profession will have to evolve and adapt quickly over the coming years. The way business transactions are recorded and communicated will completely change between now and then, as the evolution of money transforms to cryptocurrencies.