Blockchain Technology and Its Potential Effects on Accounting: A Systematic Literature Review

Abstract

With the growth of the business world, autonomous software programs such as MRP, ERP, and SAP have been used to synchronize different units and departments since the 1960s. There have been great technological developments in the last decades, such as Blockchain, the Internet of Things, artificial intelligence, and machine learning. The attention of the accounting world has also been on those technological developments, especially on Blockchain Technology. Accounting academics and professionals have been trying to understand how blockchain technology can affect accounting and what kind of changes might be brought about by that technology. Therefore, the purpose of this study is to make a systematic literature review in order to foresee the potential effects of blockchain on accounting. Selected keywords were searched for on the Scopus database. The results show that most of the studies in this area focus on technical issues and the development of software applications, and a small number of studies make a connection between blockchain and accounting. Although most of the authors are very optimistic about blockchain technology and claim that this technology may change the double-entry accounting system completely and radically, some have discrete approach and express critical views.

Cryptocurrencies’ Impact on Accounting: Bibliometric Review

“…More than that, the paper of Barros et al (2023) discusses decentralized accounting management regarding cryptocurrencies, highlighting the importance of coordination in updating accounting records. Abdennadher et al (2022) argue that blockchain technology presents a double win for the accounting profession (Atik and Kelten 2021;Pflueger et al 2022). On the one hand, it has the potential to automate many routine accounting tasks, facilitate processes, enhance efficiency (Alhasana and Alrowwad 2022; Caliskan 2020), and support sustainable development (Al-Htaybat et al 2019;ALSaqa et al 2019).…”

In what way does blockchain technology tie with the efficacy of accounting practice in Nigerian accounting firms?

“…Once a transaction finds its place within the blockchain, the prospect of alteration or deletion becomes exceedingly challenging (Atik & Kelten, 2021). Blockchain serves as a distributed digital ledger, offering enhanced security and global accessibility to insurance companies.…”

“…To become an integral part of this evolving financial ecosystem, blockchain must undergo Accountants can also serve as advisors to companies considering adopting blockchain technology, offering guidance on evaluating the costs and benefits of adopting such a system. Their fusion of commercial and financial expertise positions them as indispensable advisors to companies venturing into these novel technologies in search of opportunities (Atik & Kelten, 2021). The aspects of accounting linked to transaction security and property transfer execution are undergoing transformation due to blockchain and smart contracts.…”

“…Certain roles, such as postal and provenance insurance, may decrease or vanish, while other domains like consulting and value-added businesses are poised to expand. To conduct effective audits of companies with substantial blockchain-based transactions, auditors may need to adjust their focus and approach (Atik & Kelten, 2021).…”

“…It is important to understand whether an opportunity or a threat to the accounting profession related to blockchain technology should be understood and addressed. (Atik & Kelten, 2021).…”