The latest blockchain news bring us the topic of the accounting and business consulting firm Armanino which recently launched a new tool called TrustExplorer 2.0. As the firm said, this new blockchain tool can overturn how accounting is done within companies and offer instantaneous 30-second audits.
While it is really surprising by definition, “ledger technology” should improve accounting and provide a competitive threat to the way things are now done. Blockchain and accounting are made for one another, the report shows.
Armanino’s TrustExplorer 2.0 is the new program and auditing protocol offering real-time, distributed and final audits according to the partner of the firm, Andries Verschelden. As he said in a phone interview:
“We have this digital ledger that becomes the single point in truth capturing all these transactions.”
He also said:
“You open up the possibility of real-time audit and being able to provide transparency.”
As the report shows, blockchain technology offers immutability (permanence) and accessibility (wide distribution of data entry points). Armanino has been trialing the TrustExplorer 2.0 suite with accounting and finance firms over the last year, Verschelden noted.
Aside from this, the Armanino project is one of the many in the accounting industry that are taking advantage of blockchain. This includes the big firms like PwC and Deloitte. As it stands, blockchain technology and the TrustExplorer 2.0 can automate the capture of accounting data and verify its accuracy. With this, the tool can also reduce the risk of alteration or corruption.
In 2016, Deloitte even noted:
“Since all entries are distributed and cryptographically sealed, falsifying or destroying them to conceal activity is practically impossible. It is similar to the transaction being verified by a notary – only in an electronic way.”
With TrustExplorer 2.0, Verschelden knows that accountants have no need to fear for their jobs. Instead, blockchain technology will make their lives easier and remove the handwork and number crunching.
For final audits, however, accountants will still come in with their traditional methods for a more nuanced approach to risk management and financial inspections.
“Our industry is slow to embrace technology and has really looked at technology and blockchain as a threat than an opportunity,” Verschelden concluded.
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