Imagine that a report that your auditor normally takes days to prepare, after going over months of transactions and ledger entries, is completed in seconds. This is the vision behind real-time reporting, a powerful new tool that can make use of distributed ledger technology that is based on blockchain technology.
With the rise of real-time reporting and audits, the role of trusted third-party intermediaries will change dramatically. No longer will companies shell out thousands of dollars every year to accounting firms like the Big Four. Instead, they will choose to rely on a trusted, automated platform to verify that their transactional and financial data is reliable and free from manipulation. Even audit firms are getting in on the action by investing in blockchain based technology, as they can foresee a time when this technology will be dominant in finance and accounting.
Why Real-Time Audit and Reporting is Needed
Experts agree that blockchain is a revolutionary technology which may sound the death knell for several existing companies in the financial and regulatory sector. Blockchain offers the ability to increase automation, accuracy, and real-time reporting. Using the distributed ledger which underlies blockchain technology, reliable and transparent accounting is possible that irreversibly makes available for analysis and reporting all previous transactions every few minutes. This means that old-fashioned financial corruption and improper accounting practices could be avoided with the help of a new set of tools associated with blockchain; smart contracts, real-time reporting, automated analytics and Artificial Intelligence solutions.
Real-Time Reporting is Offered by Auditchain
Amongst the emerging players in this nascent market is Auditchain. Auditchain is aiming for a share of the huge financial reporting and audit market. As it automates parts of the industry, the groundbreaking service it offers will be substantially cheaper in the long term rather than relying on traditional financial reporting and external audit functions. Blockchain offers the best way forward in this space, with adoption of the technology increasing expontentially.
Will The Big Four Oppose or Embrace Disruptive Technology?
The Big Four have been actively engaged in blockchain and cryptocurrencies, e.g. KPMG and Microsoft (MSFT) launched joint innovation workspaces called Blockchain Nodes in early 2017. The workspaces are designed to create and demonstrate use-cases that apply blockchain technology to the business world. At the same time, new market players such as Auditchain are attempting to penetrate existing markets and provide competition to the incumbent players. If they are able to get traction in the market, they’ll gain the first mover advantage over their rivals and can stay ahead of the pack by being more nimble.
The time is approaching for a revolution in auditing, and it will be a transformative process for the industry. The market leaders of today may no longer dominate the industry in the future. The Big Four may soon have to change themselves and evolve as the new technology will be disruptive to their existing business model. Auditchain has a potential to be the future of audit, so it will be interesting to see how soon it is adopted by the industry.
Learn more about how Auditchain is about to disrupt the audit industry on their website https://auditchain.com/, and get information on their upcoming Token Generation Event.
The financial audit and reporting industry is ripe for disruption with the introduction of blockchain based reporting products. Are the Big Four ready for the transformation ahead or will they remain in denial until it’s too late?
audit, financial reporting, Big Four, blockchain, real time reporting, Auditchain