Hurina Nataliia, PhD in Economics, Associate Professor, Associate Professor of the Department of Accounting and Auditing, State Tax University, Irpin, Ukraine

ORCID: 0000-0001-9433-069X
e-mail: G-Nataliya@ukr.net

Leonova Yelyzaveta, Higher education student, State Tax University, Irpin, Ukraine

ORCID: 0009-0000-6551-2638
e-mail: yelyzaveta.leonova@dpu.edu.ua

The Impact of Blockchain Technologies on the Development of Accounting: Advantages, Risks, and Challenges of Implementation

Abstract. Introduction. In the context of modern digital transformation, accounting is undergoing significant changes. One of the most promising developments is the implementation of blockchain technology, which has the potential to transform traditional accounting processes. Traditional accounting systems have several limitations, including the risk of manual data entry errors, the possibility of fraud, the complexity of audits, and the high cost of reconciliation between counterparties.

Purpose. The purpose of the study is to analyze the applications of blockchain technology in accounting, determine their advantages, identify implementation challenges, and assess development prospects. The research examines the evolution from traditional double-entry bookkeeping to the triple-entry accounting concept. It also explores smart contract mechanisms and evaluates the potential impact on the transformation of the accounting profession.

Results. The study demonstrates the possibilities of applying blockchain technology to transform accounting. Its fundamental characteristics include decentralization, transparency, and immutability of records. Triple-entry accounting creates a third, cryptographically protected entry in a shared, distributed ledger. Smart contracts automate accounting processes by executing payments automatically and forming accounting entries upon confirmation of goods delivery. The research identified several challenges to implementation, including technological limitations in transaction processing capacity, high energy consumption, the absence of comprehensive legal regulation, the complexity of integrating with existing ERP systems, high implementation costs, and the need for personnel retraining. The research establishes a transformation of the accounting profession with an emphasis shift toward analytical and strategic functions.

Conclusions. Blockchain technology has significant potential to transform accounting. Key advantages include immutable and transparent records ensuring reliable financial reporting, triple-entry accounting eliminating the need for reconciliation, and smart contracts enabling automated operations. However, challenges remain, including technological limitations requiring protocol improvements, the absence of legal regulation creating uncertainty, and high costs. The prospects are positive, as the profession is expected to transform toward analytical functions.

Keywords: blockchain; accounting; triple-entry accounting; smart contracts; cryptography; audit; digitalization.

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