New blockchain tools are expected to complete financial audits in 30 seconds, significantly improving efficiency.

The accounting and business consulting firm Armanino recently launched a new blockchain-based tool, promising to complete a company's financial audit within seconds. The product is called TrustExplorer 2.0.

TrustExplorer 2.0 is considered to be one of the products that could revolutionize the internal accounting processes of companies, which should come as no surprise. The distributed ledger technology of blockchain is highly regarded for improving cumbersome accounting processes and is even seen as a competitive threat to the current way of working. Many in the industry also acknowledge that blockchain and accounting can be integrated.

According to Armanino partner Andries Verschelden, this product is an audit protocol that provides real-time, distributed, and ultimate auditing procedures. He stated:

When we have this digital ledger, it will be possible to capture all transactions, perform real-time audits, and provide transparency.

Blockchain technology offers immutability and accessibility, the latter referring to the widespread distribution of data entry points. Verschelden added that Armanino has been piloting its suite with accounting and finance firms for the past year, and the launch now represents a fairly mature product.

Armanino is one of many projects in the accounting industry making use of the advantages of blockchain, alongside major firms like PwC and Deloitte. Blockchain technology can automatically capture accounting data and verify its accuracy, thereby reducing the risk of alterations or tampering. Deloitte stated in a 2016 report:

Since all entries are distributed and cryptographically sealed, forging or destroying them to conceal records is almost impossible. This is similar to transactions verified by a notary, just in a digital way, thus saving significant personnel costs.

Accountants need not worry about their jobs now. Instead, blockchain will make their lives easier. Companies no longer have to spend time and effort on manual processing but can obtain their financial status within seconds. However, for final auditing, accountants will still use traditional methods for more nuanced risk management and financial checks.

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