Blockchains will fundamentally change the way we do business. Everywhere.
Get ready for a wild ride.
The swift, chaotic growth of blockchains means how we do our jobs, what skill-sets are needed and how these changes are implemented at our organizations are rapidly evolving.
In this the first of a quarterly Accounting Blockchain Coalition (ABC) Chairman’s Letter I’ll address the potential — and the challenges — of these fundamental changes and discuss how ABC can help navigate this new reality for the accounting industry to answer the questions: What hath blockchains wrought – and what will it mean for you?
What is the ABC?
The ABC is a forum for ideas, innovations, education and best practices about blockchains in the accounting profession. It’s the place where solutions can be shared, opportunities realized and new skills developed.
Our mission as a non-profit is to help organizations navigate the changes and confusion created by blockchains and the resulting accounting issues related to digital assets and distributed ledger technologies. ABC also serves as a platform for ABC members to contribute their knowledge and expertise while fostering best practices.
ABC: By Industry, For Industry Best Practices
The ABC was created by industry, for industry to help educate organizations as it became increasingly clear that distributed ledger and blockchain technologies will have an enormous impact on the accounting industry and its professional practitioners. New skills will be required to manage new classes of digital assets representing different custodianship models, new ways to monetize different types of assets and different ways to raise funds.
In this changing environment some in the industry – including the ABC Board of Directors and other founding members — recognized a clear and alarming knowledge gap. Together ABC founding members met over a number of months to lay the foundation for a community with the mission to educate a broad sector of the industry. ABC’s goal is not to create standards but, instead, to find and develop best practices where they occur in the industry.
In short, accounting –being integral to business operations and, therefore on the frontlines of this change — will require new business models, new financial instruments, new ways of reporting and new ways to manage digital assets. These are just a few of the changes on the horizon for the accounting industry – and why the ABC was formed.
Bookkeeping To Blockchains — Join A Working Group
What blockchains have wrought is a great, tumultuous upheaval and potentially the most significant change in the way we perform accounting since the introduction and wide-spread use of double-entry bookkeeping in 15th century Italy.
Blockchains will be a wild ride for all of us. ABC and its four member-driven Working Groups are here to help. The Working Groups address the most critical areas in accounting impacted by blockchains including: Regulatory Compliance; Audit and Accounting; Taxation and Internal Control. These Working Groups are charged with creating blockchain information and materials that inform and educate, provide best practices guidance, use cases and analysis to advance the use of blockchain in the accounting profession.
I encourage you to join a working group and contribute to the industry’s body of knowledge to help manage and influences these changes in the way we do business. Learn more about the ABC’s Working Groups here.
If you would like to become a part of the ABC, read about the membership levels and benefits here.