How Blockchain's Impact on Accounting Made Me Switch My Career

How Blockchain’s Impact on Accounting Made Me Switch My Career

When I joined the university for my undergraduate course several years ago, I was excited that I am going to be an accountant thus handle money for big companies and work for the big 4 audit firms - EY, PwC, Deloitte and KPMG.

Hello
Is there any accounting software based on a blockchain?

Thank you for sharing this information. The accounting profession needs people who want to think about these topics and help move the profession into the future.

A few suggestions/possible corrections:

There are two distinct uses of the term “Triple Entry Accounting” in accounting and they are unrelated . The Yuji Ijiri TEA of the 80s has nothing to do with Ian Grigg’s TEA of the 2000s. Ian Grigg did not adapt Ijiri’s work to blockchain; he, working with Todd Boyle, developed a new idea of financial cryptography over Todd’s GL Dialtone of ‘99-‘01. Ian’s 2005 paper reads like Bitcoin - pseudonymity, hard payments and more. When blockchain instantiated foundational concepts, Ian and others began to layer crypto TEA onto blockchain.

Secondly, TEA is only about trade transactions, and doesn’t help with other business events, so it is an incomplete solution and can’t obsolete auditing on its own. The relevance to construction, manufacturing process, B2C, professional services, etc. is questionable. One good lawsuit against a company, and investors will be left blindsided if relying only on blockchain-based information.

Auditing is not “only on demand because companies do not trust their accountants”. Auditing is on demand because investors, creditors and lenders don’t trust management. Blockchain doesn’t magically make data accurate and relevant; it only promotes data integrity once entered. And most of the data captured by ERP/accounting systems probably won’t even be written to the blockchain, but be kept off-chain and referenced from a blockchain.

Auditing isn’t focused only on whether transactions are modified after being entered into the system. In fact, they aren’t focused on individual transactions as a whole. They are focused on whether the reports fairly present the position and performance of the organization.

I encourage you to come back to accounting/audit, so you can help with a better understanding of the purposes and activities of audit to help the profession’s response to the incredible changes blockchain may potentially bring.