+971 4 4542366 +971 554413566

Flyingcolour logo Flyingcolour logo2

  • Home
  • UAE Company Setup ›

    Business Setup Overview

    • Business Setup Overview of UAE
    • Educate yourself about Jurisdictions in UAE

    Mainland Business Setup

    • UAE Mainland Overview
    • Mainland Professional Company
    • Mainland Limited Liability Company
    • Mainland Industrial Company
    • Mainland Branch/ Representative for Foreign Company
    • Mainland GCC Owned Company

    UAE Mainland

    • Dubai Mainland
      Dubai Mainland Business Setup Overview Business Setup Al Barsha & Tcom Business Setup Al Quoz & DIP Business Setup Al Qusais Business Setup Bur Dubai Business Setup Business Bay Dubai Business Setup Deira Dubai
      Business Setup Downtown Dubai Business Setup Dubai Marina & JBR Business Setup Dubai Media City Business Setup International City Business Setup New Dubai Business Setup Sheikh Zayed Road Business Setup Jumeirah Beach Road & Al Wasal Road
    • Abu Dhabi Mainland
    • Ajman Mainland
    • Sharjah Mainland

    UAE Freezone

    • Freezone Business Setup Overview
    • Dubai Freezone
    • Abu Dhabi Freezone
    • Ajman Freezone
    • Sharjah Freezone
    • Ras al Khaimah Freezone
    • Umm al Quwain Freezone
    • Fujairah Freezone

    UAE Offshore

    • Offshore Business Setup Overview
    • Dubai Offshore
    • Ajman Offshore
    • RAK ICC Offshore
  • Taxation ›

    Taxation

    Expert taxation and financial management solutions

    VAT Services

    Business Accounting Services

    Financial Forecast & Projection

    Book-keeping Services

    Accounts Payable

    CFO Services

    Inventory Verification Service

    Tax Residency Certificate in UAE

    Payroll Management

    Month End Financial

  • PRO Services ›

    PRO Services

    Professional support for all your business needs

    PRO Business Services Overview

    PRO Services

    MEA & MOFA Attestation

    Golden Visa

    Property Visa

    DUBAI Customs Registration

    Assistance in Bank Account Opening in UAE

  • DIFC Formation ›

    DIFC Formation

    Pioneering Excellence in Financial Foundations.

    Overview

    DIFC Foundation

    DIFC Prescribed Company

  • Blogs ›
    • Categories
    • Industries

    About Business

    Building & Engineering

    Educational Activities

    Financial Activities

    Gas & Energy

    Heavy Industries

    Light Industry

    Medical

    Nutrition & Food

    Personal Household

    Print & Media

    Real Estate

    Sports

    Activity Group: Transport

    Various Activities

    Business Setup

    Company Formation

    Dubai Business Laws

    Entertainment & Related

    Freezone Company Formation

    Offshore Formation

    Research Article

    UAE Business News

    Accounting & Bookkeeping

    Business Setup Dubai

    Cloth Pressing Business

    Construction

    Crypto Business

    Decoration Design Business

    Dry Cleaning Business

    Education

    Energy and Mining

    IT

    Financial Services

    Fintech

    Healthcare

    Healthcare Industry

    Hotel and Hospitality

    Home Based Business

    Manufacturing

    Media and Entertainment

    Online Business

    Real Estates

    Restaurant and Cafe

    Shipping

    Telecommunication

    Trading

    Transport

    Travel and Tourism

    Utilities

    Yoga Centre

  • Contact
Calculate Your Business Setup Cost in UAE

Blockchain Technology In Accounting

  • Home
  • Blog
  • Blockchain Technology In Accounting
  • Thu 10 Sep 2020 | By : admin
The 21st century has accelerated the technological advancement in various functions of business. The automation of any business activities has always helped businesses to focus on its core function and stay ahead of its competitors. This is also evident from the fact that consumer demands has been rising in digital world which led to a massive demand of products and delivering the same to them on time. Ultimately this has forced every business to invest in its research and development to change the traditional business models and adopt an updated one. The transformation of any business model with digital automation has to be integrated with its accounting function as there won’t be an overall progress without achieving an integrated system. When most of the business adopts Blockchain technology, it becomes necessary for them to opt for an automated Blockchain into finance function. Thus a Blockchain integrated finance division functions on reducing manual transactions while the business’ overall focus can be on expanding its business to various markets. However this should not oversight investors’ involvement in the financial statement. Such automated finance function will help the investors to delve into the bottom of information incorporated in the financial statement. Though the basics of accounting remains same, the adoption of it will be on an advanced basis.

Why Incorporate Blockchain In Accounting?

Blockchain in Accounting helps to improve the integrity of financial statement. It will revolutionize how corporates will collect and present financial information. As these are operated on the trusted common grounds which connects the parties involved in the transaction together with the incorporation of smart payment contracts, this technology will put behind the traditional financial system. Also such a revolution is necessary to prevent the financial system of the company vulnerable to fraud and misstatement. Some of the world’s biggest financial scams are results of management’s intervention in the financial system which gave them clearance to hack and manipulate financial data. Blockchain in Accounting can be simplified and explained as below:
  1. There will be a contract between parties involved in the business. Such a contract will be converted into smart contracts which can either be non-negotiable or alteration requires approval of both the parties.
  2. The transactions are recorded in a pre-determined chronological order upon initiation of an event.
  3. Such recorded transactions can be viewed by anyone who has access.
  4. All the transactions of a business are stored in a joint ledger making a well connected trial of accounting records.
  5. Such records are stored in a sealed and encrypted way making it difficult for any person without the right key to understand it.
  6. Most of the data will be stored in cloud, making it accessible to anyone over the world, with access.
  7. All the reporting part are as per the standardization set by the organization which helps the senior level executives to access the up to date financial position on the go.
MIS Reporting & Compliance Service

Blockchain in Auditing the Accounting Records

  1. A well automated financial technology will ease the job of auditors.
  2. Auditor now can access the company’s financial data without having to visit their premises. This relieves the auditors to focus on other works rather than binding the company’s accountants for long time periods
  3. Standardization of accounting records will help them to verify large volume of data automatically. This results in the reduced time for doing their task on traditional function while focusing on tasks which adds ore value.
  4. The Auditors then will be regarded as analytical innovators instead of being regarded as an accountant.

Limitation over Implementation of Blockchain in Accounting

One of the major limitations of Blockchain implementation over Accounting is going be the security over the data. However the same can be mitigated using several advanced features such as Hash Strings and encryption of data. Hash string represents the digital fingerprint of a file. The fingerprint is timestamped by writing it into the Blockchain via a transaction. The integrity of any files can be proven by comparing the original timestamp with the one stored in the Block chain. Encrypting the data makes it impossible for any intruders from understanding or reading the data without a key to decrypt it. Thus only those people will be able to view the data with the correct key. The blog post is written by Mr. Nadeem, Tax Advisor at Flyingcolour Accounting & Tax Services. At Flyingcolour, we can guide and help your business with all kind of accounting needs with our up-to-date technology. If you have any query then feel free to call +971 4 4542366 today for a quality consultation or please send inquiry to info[at]flyingcolour[dot]com. Please Note: This article was published on 10th September, 2020. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.

Leave a reply

  • flyingcolourbs
  • 3000+ Real Customer Reviews on Google.

  • Click here to Read.

Recent Posts

Tax Benefits of DIFC Foundations for Global Investors
Thu 15 May 2025
RAKEZ Free Zone Company Setup: Packages, Benefits & Activities Explained
Tue 13 May 2025

Contact Us

Our Success

Our Success lies in honestly and integrity which are used as motivational factors to inspire us to arrive at success as well as prosperity for the company plus our customers.

18,000

+

Global Clients

20

+

Years of Experience

175

+

Team of Professional

High Tech


Real Time Support

Ready to take it a step further?

You can schedule a free call with our expert consultants

Do you have questions or want more information ?

Phone : +971 4 4542366

Mobile or Whatsapp : +971 554413566

Email : info@flyingcolour.com

Keep connected

Get updates by subscribe our newsletter

About Us
  • We are a leading consulting firm providing Company formation, Accounting & VAT and immigration services located in Dubai - UAE ...Read more
  • flyingcolourbs
  • 3000+ Real Customer Reviews on Google.
  • Click here to Read.
Popular Services
  • Jebel Ali Offshore Company Setup
  • Business Setup in Dubai Free zones
  • Limited Liability Company
  • Professional Company Setup
  • Bank Account Opening in Dubai
  • Offshore Company Formation
  • Dubai Mainland Company Setup
  • Trade License
  • Miscellaneous
  • Flyingcolour® Careers
Gallery
  • LegalEx Exhibition London – 2018
  • Going Global London – 2017
  • GITEX 2013
  • GITEX 2012
  • Diwali
Quick Links
  • Mainland Company Formation
  • Free Zone Company Formation
  • Offshore Company Formation
  • VAT Registration & Return Filing
  • Economic Activity Guide for UAE
  • VAT Consultancy Services
  • Customer Grievance Policy
  • Terms and Conditions
  • Privacy Policy
Contact
  • Head Office:
  • Office No.2608,2609 & 2610
  • Concord Tower Opposite Palm Jumeirah Dubai Media City,
  • Dubai. UAE.
  • DIFC Office:
  • Unit GV-00-04-03-BC-44, Level 3,
  • Gate Village Building 04, PO Box 84059,
  • Dubai. UAE.
  • payment

©2004 - 2025 Flyingcolour® . All rights reserved