Bockchain already represents the most effective disruptive force. It’s applicable to a large variety of functions. Blockchain will further change the payments field and alter accounting and finance for the better. So, let’s discover more about blockchain and its benefits for merchants. By the way, if you’re interested in business funding like cash advances for merchants, this article will also be helpful for you.
Blockchain in Accounting & Finance
Blockchain can be described as a type of distributed ledger technology designed to digitally record data into blocks (packages) that can’t be changed. When blockchain is used below a distributed ledger, it starts ordering and validating the transactions in the ledger.
The operation of blockchain is based on advanced cryptography and a series of fail-safes. As a result, the integrity of data gets stored within blocks, every single block gets connected and maintained across a computer network providing real-time communication.
When it comes to accounting, its digitalization is still in its first stages as compared to other fields. Blockchain technology is hugely promising for accounting. It can be used to improve accounting by cutting the costs associated with maintenance and ledger reconciliation, as well as bringing certainty over the ownership and history of assets.
So, blockchain technology is a breath of fresh air in field of accounting. Overall, companies can benefit in a number of ways. Specifically:
- Avoid keeping separate records based on transaction receipts. Instead, write transactions right into a joint register, thus developing an interlocking system of enduring accounting records.
- Thanks to standardization, auditors can verify a great portion of the most valuable data behind the financial statements automatically.
- Enjoy reduced costs and time required for audit, thus being able to spend more time on complex transactions, internal control mechanisms, etc.
Blockchain for Merchants: What About Cash Advances?
The cryptocurrency has exploded in recent years and offers new use cases quite frequently. In fact, blockchain has become the mainstream and is highly valuable for merchants as well.
Well, payment processing isn’t the only important aspect that you, as a merchant, should focus on. What about reliable and affordable business funding? This is quite possible if you turn to a creditworthy alternative online lender that offers exceptional terms and rates for cash advances, and other types of financing.
Don’t forget that almost 29% of failed businesses have cited the lack of working capital as a major reason for failure, as New York data analytics firm CB Insights reports. So, take the time to research the available options, and opt for the best and the right business financing provider that can help you make significant headway.
When it comes to the benefits of blockchain for merchants, here’re several examples:
- Identity management
- Intellectual protection
- Loyalty programs
- Mobile payments
- Product authenticity
- Smart contracts
- Supply chain breakout for food products
Today, the internet is buzzing with the ways blockchain can solve problems and disrupt so many industries. So, know what exactly a blockchain is and how you can take advantage of it to grow your business.
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using business funding (cash advances) solutions. His experience and extensive knowledge of the industry has made him a finance expert at First American Merchant.