Blokchain technology as a management tool to increase the quality of the accounting and financial information

Abstract

Business runs on reliable information. The faster it’s treated and the more accurate it is, the better. Nowadays, it is necessary for a firm to be able to record each transaction by identifying the who, where, what, how much and even the conditions of the operation. The used data system must analyze the movement of the assets and deliver the information immediately to all the concerned users by recording all the supporting documentation. Blockchain technology is transforming industries. This technology stores information in digital forms and guarantees the transparency of data. It has fundamentally altered how information are created, tracked, transferred and approved in accounting. The aim of this paper is to discuss the implications of Blockchain for accounting and financial controls practices. We argue that in the short term the technology could be used as a platform to disclose and treat the information flows. Also, in the long term, we demonstrate that it reduces errors in disclosure statements and increase the quality of accounting information and the asymmetry of the data in financial statements. Finally, we illustrate the innovative aspects of Blockchain and its eventual influence on the performance of the firm in the years to come after using it.