Accounting automation blockchain

Blockchain and Accounting

DLT: Changing the Nature of Accounting

Perhaps one of the greatest benefits of a decentralized system like distributed ledger technology (DLT) is the clarity and ease of access when tracking transactions and other information stored in a secure blockchain.

This transparency offers a new level of security that is changing the nature of numerous job markets and the ways companies run their business. Accounting, specifically on the auditing level, is one sector that will see a high impact in terms of job creation and obsolesce.

It is imperative for current and future university students in Vancouver and the surrounding B.C. area preparing to enter this field to become as literate as possible about this technology.

Preparing for the future of accounting

The inability for anyone to alter a single block on the chain will make record-keeping an easier task for accountants and auditors doing their jobs. Additionally, as the process becomes more automated, its reliability and accuracy will grow.

Since DLT serves as an “actual accounting system serving to write, store, and publish the transactions data,” the ledger is accessible to everyone and transparency is guaranteed. It eliminates accidental mistakes or discrepancies as well as potentially making companies unable to destroy valuable information, such as the case of the Enron scandal in 2001.[1]

The benefits of DLT will lead to accountants being able to perform their jobs better than ever. Eventually, however, third parties “holding the receipts in a centralized manner” will be replaced by DLT.[2] This leads to fears that DLT will eliminate the need for auditors in the near future.

Some auditing companies are preparing for this change by working on solutions “that will allow them to transform and improve their practices and keep their positions by becoming the first providers of blockchain software on the market.”[3] Unlike other technological advances like A.I., people can use DLT to create more lucrative careers, provided the accounting industry adapts to the changes ahead.

Several solutions under development currently include Rubix by Deloitte, Harmony by Factom, Balanc3, and Tierion. These systems developed by these companies will enable accountants to find a place in a changing profession.[4]

Knowing how to adapt and where to succeed amid a changing job market is where learning as much as possible about DLT is imperative for those studying accounting.

For students studying in SFA, UVic, or UBC, understanding of DLT is critical. Enrolling courses or workshops offered by UBC Blockchain or the RED Academy in Vancouver are two ways to get an edge, come out prepared, and know how to apply the skills learned in school to a changing field.

How DLT benefits auditors

Some accountants and auditors may feel as if this career field will become obsolete. However, DLT’s is applicable not just for internal audits, but external ones as well.

Having access to previously unavailable information gives accountants better context when conducting audits. If a company under review has a DLT system in place, accessing records becomes streamlined, and accountants have more time to focus on higher-level questions during audits, making the process more efficient and accurate.[5]

Students majoring in accounting will find themselves on the brink of significant changes brought about by DLT. Graduates equipped adequately with detailed knowledge of this technology will have an opportunity few other sectors have: the chance to control and influence DLT to work for them. Accountants can use DLT to their advantage by developing the services and solutions that affect its installation and applications once it becomes mainstream.[6]

One way that accountants can influence DLT is by using their expertise as record keepers to develop regulations and standards. They can also advise companies that are considering adopting DLT. Accountants have in-depth knowledge about business and finances, which makes them top candidates when advising companies.[7]

While some roles such as provenance assurance may become obsolete, accounting jobs in technology, advisory, and other “value-adding activities” will grow. And as more companies implement DLT, the auditor’s attention will shift from confirming the accuracy of transactions to checking how they were recorded.[8]

Students graduating in B.C. and entering the Vancouver job market will find themselves well-suited for change. Currently, Vancouver is a leader in Canadian blockchain technology, and each year, more companies look for ways to integrate it into their business.

The city is also a hub for startups and small businesses looking for ways to grow with DLT. In addition to these small and medium-sized businesses, well-known accounting firms such as Buckley Dodds Parker, D&H Group, and Dale Matheson Carr-Hilton Labont will need knowledgeable employees who are ready to adapt and advise.

Taking courses in university or signing up for area workshops such as the ones RED Academy, or our organization Blockwise, offers will help students learn how to advise and adopt DLT and work with its implications not just for themselves, but future businesses and clients. It won’t require in-depth knowledge of the topic, but a well-rounded understanding of its features.[9]

For more information about how you can learn how to prepare for the future of accounting, check out some of our workshops. We host experts who are ready to share their knowledge and help prepare students for the changing nature of accounting and the benefits that DLT offers.


[1] Duka, A. P., & Riumkin, I. (2017). Paradigm Of Integrated Risk Management. Scientific Bulletin Of Polissia,2(4(12)), 131-136. doi:10.25140/2410-9576-2017-2-4(12)-131-136

[2] Duka, A. P., & Riumkin, I. (2017). Paradigm Of Integrated Risk Management. Scientific Bulletin Of Polissia,2(4(12)), 131-136. doi:10.25140/2410-9576-2017-2-4(12)-131-136

[3] Duka, A. P., & Riumkin, I. (2017). Paradigm Of Integrated Risk Management. Scientific Bulletin Of Polissia,2(4(12)), 131-136. doi:10.25140/2410-9576-2017-2-4(12)-131-136

[4] Duka, A. P., & Riumkin, I. (2017). Paradigm Of Integrated Risk Management. Scientific Bulletin Of Polissia,2(4(12)), 131-136. doi:10.25140/2410-9576-2017-2-4(12)-131-136

[5] https://www.icaew.com/technical/technology/blockchain/blockchain-articles/blockchain-and-the-accounting-perspective

[6] https://www.icaew.com/technical/technology/blockchain/blockchain-articles/blockchain-and-the-accounting-perspective

[7] https://www.icaew.com/technical/technology/blockchain/blockchain-articles/blockchain-and-the-accounting-perspective

[8] https://www.icaew.com/technical/technology/blockchain/blockchain-articles/blockchain-and-the-accounting-perspective

[9] https://www.icaew.com/technical/technology/blockchain/blockchain-articles/blockchain-and-the-accounting-perspective