California-based Armanino, an accounting and business consulting company, has introduced a new blockchain-powered software tool.
Launched on Wednesday, the company’s distributed ledger technology (DLT)-based tool can reportedly perform firm-originated financial audits within seconds. Dubbed the TrustExplorer 2.0, Armanino’s new product is among several others that have been designed to streamline routine accounting processes.
Armanino’s TrustExplorer is based on an auditing protocol that provides real-time, distributed, and final audits, company partner Andries Verschelden explained.
In statements shared with Coindesk, Verschelden stated:
“We have this digital ledger that becomes the single point in truth capturing all these transactions. You open up the possibility of real-time audit and being able to provide transparency.”
Blockchain technology provides immutability (permanently records information) and greater accessibility (data-entry points are widely distributed). Armanino has reportedly been piloting its software suite with various accounting and finance companies over the past year, Verschelden revealed.
Armanino is notably one of many accounting projects that is using blockchain tech to enhance traditional record-keeping and business management procedures. DLT-based systems are being developed and used by Big Four professional services firms such as Deloitte and PricewaterhouseCoopers (PwC).
Blockchain technology can be used to automate the processing of accounting data and to determine the accuracy of information. DLT-enabled systems are designed to reduce the risk of modifying or corrupting data sets.
In its 2016 report, Deloitte’s management 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.”
Verschelden stated that accountants need not worry about losing their jobs at this point. He argued that blockchain tech will simplify routine work procedures, so that workers can focus on more meaningful tasks.
Instead of performing repetitive and time-consuming accounting work, which can take several weeks or even months, companies can use DLT-powered platforms to get a detailed breakdown of their finances within seconds.
But when performing final audits, accounting professionals still need to use traditional methods to handle risk management and also to conduct financial inspections.
Matt Armanino, CEO of Armanino LLP, remarked:
“For years, thought leaders have predicted the future arrival of real-time auditing capabilities, and now Armanino has accomplished the world’s first business application of this theorized innovation. This breakthrough is a catalyst that will lead to the widespread development and adoption of real-time auditing, and offers a transformational improvement over the current audit practices. This evolution will provide more precision and more trust to ecosystems as attestation reporting windows are reduced from 30 days down to 30 seconds.”
“Our industry is slow to embrace technology and has really looked at technology and blockchain as a threat than an opportunity. [We asked] how did the blockchain change the audit process and how did it improve it?”
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Author: Omar Faridi