The Impact of Blockchain on Accounting: 7 Key Impacts in 2025

A large amount of attention and capital currently is being allocated toward virtually anything related to blockchain technology. It is important to examine blockchain first by getting a better understanding of the technology and then examining the accounting and auditing implications. The uptick in businesses exploring how to adopt blockchain accounting blockchain technology continues.

Transparency

It can also assist doctors with preliminary diagnoses of conditions such as skin cancers and help hospitals reduce wait times. Our solution has the ability to prepare and post journal entries, which will be automatically posted into the ERP, automating 70% of your account reconciliation process. Furthermore, data analytics enables the identification of operational inefficiencies and management risks. Accounting professionals utilize analytics to uncover meaningful insights and patterns, employing advanced tools to extract valuable information from large datasets, detect anomalies, and make well-informed, data-backed business decisions. For example, by leveraging HighRadius Anomaly Resolution, organizations can identify anomaly patterns and receive automated suggestions for resolutions.This leads to a 30% reduction in days to reconcile. Advances in AI capabilities extend to fraud detection, risk assessment, data analytics, and pattern recognition, with organizations deploying AI-driven chatbots for instant financial responses.

Blockchain Technology in Accounting and Auditing: A Comprehensive Analysis and Review of Feasible Applications

Drawing insights from the research outcomes above can better understand the role and potential of blockchain technology in financial accounting and provide valuable references and insights for practical applications. As a result of the above, the spectrum of skills represented in accounting will change. In the long term, more and more records could move onto blockchains, and auditors and regulators with access would be able to check transactions in real time and with certainty over the provenance of those transactions. One of the major barriers to widespread blockchain adoption in accounting is the lack of standardization across jurisdictions. However, as the technology matures and more businesses implement blockchain solutions, the industry will likely push for the global standardization of blockchain accounting practices. This could involve the creation of global frameworks for reporting, taxation, and auditing, ensuring consistency across borders.

• This helps accounting professionals and organizations automate jobs like payroll and reconciliations.This would save organizations on costs linked to manual entry errors such as administrative expenses.
• Authorized parties can access a real-time ledger, proving that blockchain can reduce the likelihood of fraudulent reporting.
• Furthermore, data security is paramount as it ensures the integrity of transactions on the ledger.
• Our solution has the ability to prepare and post journal entries, which will be automatically posted into the ERP, automating 70% of your account reconciliation process.
• Bitcoin came into the limelight in the global financial marketplace because it adopted blockchain technology to establish a consensus mechanism based on the evidence or proof of work (Back et al., 2014).
• Certain services may not be available to attest clients under the rules and regulations of public accounting.

Practical steps for accountants to get started

A major characteristic of a cryptographic hash function is that it is very difficult to reverse once it has been applied in a blockchain transaction (Rahmadika et al., 2018). The validity of a block is achieved when it hashes to a value which is less than the current mark. Also, for a new block to be accepted, there must be a cryptographic proof-of-work in such a way that each new block recognises the previous actions taken in the process of producing it.

Integrating blockchain technology with existing accounting and auditing systems is a significant challenge. The decentralization and immutability of blockchain can significantly improve the transparency and security of Liability Accounts the audit process. However, seamless integration with existing systems is essential to maximize their benefits. Alarcon and Ng (2018) highlight limited research on best integration practices and addressing interoperability issues. This research gap is critical because interoperability issues can lead to inefficiencies and data inconsistencies that undermine the potential benefits of blockchain technology.

Enterprises in the control group persist in employing traditional financial accounting information-sharing methods such as email and network platforms to share financial data files directly. The data from the experimental and control groups are differentiated by distinct serial numbers, where BFSA1 represents control group data and BFSA2 represents experimental group data. These performance comparisons allow for the evaluation of the advantages and potential of the BFSA model in financial accounting information sharing, thereby offering valuable insights for subsequent research and practical applications. With Deloitte COINIA, hundreds of thousands of addresses can bookkeeping be loaded in bulk for a variety of crypto assets, and Deloitte can see 100 percent of the transactions and reconcile them to clients’ books and records.