Blockchain in accounting is reshaping financial transparency as audit pressure and fraud risk reveal control gaps in traditional systems. With the blockchain market projected to exceed USD 41 billion in 2025 and reach USD 306 billion by 2030, adoption is accelerating across financial services. Nearly 20 per cent of use cases focus on data integrity and reconciliation efficiency, making blockchain central to audit readiness and real-time traceability through cryptographically anchored entries and continuous validation.
In response, finance leaders are taking the charge in enhancing governance and control by integrating blockchain-enabled controls within finance workflows and supporting accurate, auditable, and tamper-resistant records.
what is blockchain in accounting?
The fundamental operation of blockchain remains the same in accounting. Blockchain in accounting operates as a shared ledger where verified entries become immutable and time-stamped, reducing manual intervention and control failures. Triple-entry accounting cryptographically anchors the traditional double-entries in bookkeeping to a shared ledger that acts as a common receipt. It creates a single, verifiable source of truth accessible to authorised users in real time.
The core components include:
- Cryptographically anchored triple-entry ledger
- Permissioned consensus protocols or distributed validation to ensure transaction finality
- Automated rules execution through smart contracts
- Cryptographic non-repudiation
Real-time validation reduces reconciliation effort, while smart contracts automate approvals and exception checks across purchase orders, invoices and payments.
benefits of blockchain for financial transparency and control
Authorised users access the same time-stamped records, eliminating inconsistencies and reducing reconciliation effort.
key transparency gains include
- Shared, tamper-resistant ledger for consistent records
- Immutable entries that reduce fraud and manipulation risk
- Automated verification through smart contracts to shorten reconciliation cycles
- Time-stamped audit trails that support continuous oversight
- End-to-end traceability across commitment, approval, and disbursement paths
blockchain in auditing and assurance
Blockchain in accounting shifts assurance from periodic sampling to continuous validation. Immutable, linear-hash chains provide audit evidence independent of client-prepared documents, reducing adjustment risk and review time. Time-stamped records give auditors direct visibility into every transaction path, strengthening transparency and control effectiveness.
Smart contracts automate rule checks for transactions, flagging exceptions as they occur, not just at period-end. This removes manual matching and lets audit teams focus on high-risk discrepancies.
Public-sector pilots demonstrate how blockchain enables end-to-end traceability. One global initiative demonstrates real-time tracking of commitments, disbursements and beneficiary payments, producing automated financial reports and verifiable audit trails. The same principles apply in corporate finance, providing auditable, tamper-resistant records across accounting workflows.
challenges in adopting blockchain in accounting
Adoption of blockchain in accounting is slowed by capability gaps, audit interpretation issues, and regulatory inconsistency. Most finance teams have limited exposure to distributed ledgers and smart contract logic, increasing the risk of design errors and weak control configuration. Auditors struggle to interpret blockchain-generated records within existing assurance frameworks, creating uncertainty around evidentiary standards and documentation requirements.
Non-standardised regulatory treatment of blockchain across jurisdictions adds ambiguity around record admissibility, retention rules, and compliance obligations. Integration with legacy ERP systems adds further complexity, as data structures, workflow logic, and historical volumes require significant configuration effort. During the hybrid adoption phase, organisations must maintain synchronisation between legacy sub-ledgers and the blockchain-based 'Source of Truth' to maintain reporting consistency.
Public financial management pilots highlight the need for strong governance, permission controls, and policy alignment to maintain accountability across participants. These requirements increase the effort needed before full-scale deployment becomes viable.
practical steps for adopting blockchain in accounting
A structured pathway reduces adoption risk and maintains control. Finance teams begin by building a capability baseline around distributed ledgers and smart contract behaviour to align stakeholders and avoid design errors. Early pilots should target reconciliation-heavy processes where automation and immutability deliver immediate control and efficiency gains.
Pre-configured sandboxes validate data structures, workflow logic, and exception handling before ERP integration. A contained pilot tests evidentiary outputs, audit interpretation, and regulatory alignment to ensure blockchain-generated records meet assurance requirements.
Clear ownership models, cross-functional design reviews, and structured change management reduce implementation risk and support adoption across finance functions.
how can Infosys BPM help with blockchain in accounting?
Infosys BPM supports blockchain adoption through AI-enabled finance workflows, domain-led controls, and structured implementation. The finance and accounting services from Infosys BPM provide governance and process discipline to help organisations maintain accurate, compliant, tamper-resistant records.
frequently asked questions:
What changes operationally when accounting moves to blockchain-based “triple-entry” records?
Blockchain-based triple-entry accounting adds a cryptographically anchored shared receipt to traditional double-entry. Verified entries become time-stamped and immutable in a shared ledger accessible to authorized users, reducing inconsistencies and manual intervention. Consensus/validation creates transaction finality and strengthens non-repudiation. The business impact is faster close confidence and fewer reconciliation-driven control failures.
How does blockchain reduce reconciliation effort and data integrity risk in finance operations?
Yes—blockchain reduces reconciliation by giving parties the same time-stamped, tamper-resistant transaction record. Smart contracts can automate verification, approvals, and exception checks across purchase orders, invoices, and payments, shortening reconciliation cycles. Immutability reduces manipulation and post-facto adjustments because the ledger preserves the transaction path. This lowers operational friction and improves control effectiveness across workflows.
How does blockchain change audit and assurance—from sampling to continuous validation?
Blockchain shifts assurance toward continuous validation because audit evidence is cryptographically anchored and time-stamped. Immutable chains provide transaction-level traceability and can flag exceptions as they occur through smart-contract rule checks, not only at period-end. Auditors gain direct visibility into transaction paths rather than relying solely on client-prepared documents. This reduces adjustment risk and focuses audit effort on high-risk discrepancies.
What governance and compliance risks typically slow blockchain adoption in accounting?
The biggest risks are governance ambiguity, audit interpretation gaps, and inconsistent regulatory treatment across jurisdictions. Many finance teams lack experience with distributed ledgers and smart contract logic, increasing design and control-configuration risk. Auditors may also struggle to map blockchain records to existing assurance frameworks and evidentiary standards. Strong permission controls, policy alignment, and ownership models are required before scaling.
Can blockchain work with legacy ERP systems without breaking financial reporting consistency?
Yes—but ERP integration is a primary complexity, especially during hybrid adoption. Organizations often must synchronize legacy sub-ledgers with the blockchain “source of truth” to keep reporting consistent while data structures and workflow logic are configured. Pre-configured sandboxes and contained pilots help validate exception handling and evidentiary outputs before full integration. This reduces implementation risk and avoids dual-ledger discrepancies.
