There was many discussion on F1 teams and fans that halo (safety device) makes the car look ugly. But this recent incident in F1 is just proof how good engineering can save lives and how essential it is for safety overall.
World is getting small,
Distance between humans is really close,
We can connect to each other without waiting,
Let's experience each other knowledge,
We are limited by time which we are living personally,
We can educate each other without money, super crazy.
I have been in programming since 1990. There was a period when I didn’t program anything for a few years, but I still kept a “hand on pulse” and observe what was going on in the world. At that time, the inscription "4th Industrial Revolution" came to my attention, which intrigued me and became an object of observation. I have been following the events of the 4th Industrial Revolution for many years and the further I go, the more fascinated I am by what awaits us in the near future, and a lot of things are happening right now. I wrote a little bit about it in my previous post. Today, I want to share my vision of what corporate accounting might look like in the near future.
The three areas of the 4th Industrial Revolution will, in my view, completely change accounting as we see it today:
2. Artificial Intelligence (AI) and Machine Learning (ML)
3. Internet of Things (IoT)
In today’s post, I’ll touch on Blockchain’s influence, and next week I’ll talk about AI, ML and IoT.
Many people, and maybe even the vast majority, think of Blockchain, it’s Bitcoin, or some sort of crypto currency. No. Blockchain is a technology, and crypto currency is a product created with the help of that technology.
This technology is revolutionizing data storage by eliminating third parties such as notaries, brokers and so on. Certain countries use it to sign cadastral contracts (avoiding notaries). Many companies use this technology to transfer batch data for products such as coffee (eliminating brokers), and so on. There are many areas of application.
But when this technology comes into use at the state level, I mean State Tax Inspectorate (STI), Social Insurance Inspectorate, Registry center and so on, then the management of business processes will change, one of which is accounting.
You come to the store and buy stationery supplies for your company. The cash register of the store is connected to the STI blockchain system, which records the transaction, it is the purchase of your goods and the sale of the seller’s goods.
An accounting company (like Virtualus buhalteris), which provides you accounting services is connected to the STI blockchain network. After the transaction, the data is received by STI, accounting services company and your company’s ERP system as it is also connected to this STI blockchain network.
You will not need to print a cashier's check, invoice and hand them over to an accountant. The accountant will not need to enter them into his accounting system, as the data will be available from the STI blockchain, where the transaction is recorded.
This saves time, eliminates the possibility of errors and, most importantly, reduces the cost of accounting services for you.
Blockchain is like a huge, highly secure, database that stores all transactions. All tax reports and other documents will be submitted at the click of a button, as all data will already exist in the blockchain.
Many of you will say that the state will see everything and that way it will collect more taxes. Yes, I agree with that, but the talk is not about that. Whether we like it or not, progress will not stop. We can only adapt by adapting to it and use it to achieve our goals.
In the next post, I will share my thoughts on how artificial intelligence affects accounting.
In the meantime, what do you think about how block chains can affect your business?
In today’s post, I want to share how artificial intelligence and machine learning (AI & Machine Learning) and the Internet of Things (IoT) can affect accounting.
Artificial intelligence (AI) covers a wide area of usage. It is currently very widely used in search engines (Google, Yahoo, Bing, Yandex). It is also used in the analysis of consumer behavior (Facebook, Amazon, AliExpress). Wall Street investment companies and banks use AI to set indexes for securities, currencies, etc. The pioneer in using AI in Wall Street is Ray Dalio's investment company Bridgewater Associates, which started using AI in the last century (sounds good :)).
So, AI has already come a very long way. And it’s time for AI to penetrate simple businesses and their processes. One such process is accounting. In my opinion, this is one of the easiest processes that AI can handle because the accounting (bookkeeping) process is strictly described. Accounting programs already do this, but only at the logical level. They only lack a larger amount of data from different business areas and a description of the learning algorithm. Once that is done, there will be no accounting as we now know it. There will also be no more modern accounting systems that keep primary documents, payments, various records related to employee accounting, as all data will be available from the blockchain and artificial intelligence will do all the work currently done by the accountant.
Blockchain technology will be used to collect the primary documents (records), as example STI (State Tax Inspectorate) blockchain (I wrote about it in my previous post). The Internet of Things (IoT), like smart watches, phones, clothes that have an internet connection and so on, will be used for employee accounting. When an employee comes to the office in a blockchain (this may be some kind of business blockchain) it is recorded that he has come to work. If he got sick, thanks to the IoT, the doctor already has primary data on his body. The doctor then determines the process of his treatment and records his illness in the health care blockchain (the most amazing thing about this is that the patient does not even need to visit the doctor). AI collects, “ponder” on all data, and prepares reports for STI, Social Security, Statistics and other state institutions, and of course for company managers.
To sum up both my posts, I want to say that we have a wonderful time of transformation in all areas of business. I took accounting as an example because one of my companies, Virtualus Buhalteris, specializes in this area. This transformation opens up new opportunities for businesses. However, those opportunities will only be open to ambitious people who look out of the box and don’t try to deceive themselves that change will happen later and that they won’t be affected. It will affect. The question is just how strong.
How can this transformation of the 4th Industrial Revolution affect your life?