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Blockchain Can Usher in An Accounting Renaissance: Accounting Services – A Multi-Billion Industry

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  • Accounting Services – a multi-billion industry
  • Too Complicated at present
  • Blockchain technology to guide the accounting renaissance

Accounting services is big business and often the Achilles heel for most business owners who spend astronomical sums for compliance-related services. As per a study by nonprofit organization SCORE, most business entities feel that bookkeeping is a pain in the neck. With blockchain technology revolutionizing how we do our business, will it come to our rescue and revolutionize how we keep our accounts book?

Need for accounting renaissance

Among the many names associated with the European renaissance, like Da Vinci, Michelangelo, and Erasmus, one name did not get the credit he deserved. He was Fra Luca Bartolomeo de Pacioli, the famous Italian Mathematician and the father of double-entry bookkeeping. Luca Pacioli was also credited with simplifying bookkeeping by standardizing and systemizing the double-entry accounting method used in parts of Italy at that time. Today, bookkeeping has become too complicated with layers after layers of procedures, which can only be understood by a hard-nosed Chartered Accountant and not any Green Horn Startup owner.

How blockchains can simplify accounting

From the days of Pacioli, accounting has become more intricate, and today it is an excruciating exercise full of rules and complexity. Accounting services worldwide amount to a massive $576 billion in 2020. Only a trained expert can manage the books and navigate the intricate maze which is today’s bookkeeping. It is here that blockchain technology with its distributed ledger technology can aid the business community. Blockchain technology is a more efficient and secure way of accounting at its core.

ibtimes.com quoted Chris D’Costa the CEO of Totem Accounting, who felt that big houses could manage the daunting complexity of accounting at every level of business, like marketing to distribution to production. What about freelancers, self-employed professionals, and startup entrepreneurs? All the above entities have scarce resources in the gestation period of their existence, which cannot be spent on bookkeeping exercises. It is for them that blockchain technology comes to the rescue.

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