The accounting and business consulting firm Armanino launched Wednesday in a few seconds a new tool based on a chain of blocks, promising financial audits initiated by companies. Called TrustExplorer 2.0, this product is one of many promising products that are breaking down accounting within companies.
Not surprisingly, by definition, "general ledger technology" is expected to improve accounting and pose a competitive threat to the way things are going today. Blockchain and accounting are done one for the other, as is recognized by much of the industry.
The Aramamino TrustExplorer is an audit protocol offering final, distributed and final audits, according to Armanino's partner, Andries Verschelden. "We have this great digital book that becomes the only point in truth that captures all these transactions," said Verschelden in a telephone interview:
"You open the possibility of an audit in real time and you are able to provide transparency."
Blockchain technology offers immutability (permanence) and accessibility (wide distribution of data entry points). Armanino has been testing his suite with accounting and financial firms over the past year, said Verschelden.
Armanino is one of many projects in the bookkeeping sector leveraging the blockchain, especially in large companies such as PwC and Deloitte. Blockchain technology can automate the capture of accounting data and verify accuracy, reducing the risk of tampering or corruption. Deloitte said in a 2016 report:
"Since all entries are cryptographically distributed and sealed, it is virtually impossible to falsify or destroy them in order to conceal an activity. This looks like the transaction verified by a notary, but only electronically. "
Verschelden said the accountants did not need to fear for their jobs for the moment. Instead, blockchain will make it easier for them (in theory anyway). Instead of doing tedious manual work and doing arduous calculations – which often takes weeks or even months – companies can get expert insights into their finances in seconds. However, for final audits, accountants will continue to use traditional methods for a more nuanced approach to risk management and financial inspections.
"Our industry is slow to embrace technology and has really viewed technology and blockchain as a threat rather than an opportunity," Verschelden said. "(We asked) hHow did the blockchain change the audit process and how did it improve? "
Picture of the big books via Shutterstock