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Triple‐entry accounting with blockchain: How far have we come?

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  • Cynthia Weiyi Cai

Abstract

Although double‐entry accounting has been used for more than 600 years, today’s era of disruptive technological change utilising blockchain and FinTech has led to the emergence of another promising accounting method: triple‐entry accounting. This paper explores triple‐entry accounting, from its conception to the current state of play, using three case studies. We find that: (i) in a blockchain ecosystem, for some accounts, business entities will only need to perform a single entry internally and the opposite entry will be recorded in a public shared ledger; and (ii) triple‐entry accounting is a new and a more efficient way to address fundamental trust and transparency issues that plague current accounting systems. Triple‐entry accounting with blockchain, when properly implemented, can fundamentally improve accounting.

Suggested Citation

  • Cynthia Weiyi Cai, 2021. "Triple‐entry accounting with blockchain: How far have we come?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(1), pages 71-93, March.
    • Handle: RePEc:bla:acctfi:v:61:y:2021:i:1:p:71-93
    DOI: 10.1111/acfi.12556
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    References listed on IDEAS

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    Cited by:

    1. Pythagoras Petratos, 2024. "Triple-Entry Accounting and System Integration," JRFM, MDPI, vol. 17(2), pages 1-15, January.
    2. Melinda Timea FULOP & Nicolae MAGDAS, 2022. "Opportunities And Challenges In The Accounting Profession Based On The Digitalization Process," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 10(2), pages 38-45, June.
    3. Kakhkharov, Jakhongir & Bianchi, Robert J., 2022. "COVID-19 and policy responses: Early evidence in banks and FinTech stocks," Pacific-Basin Finance Journal, Elsevier, vol. 74(C).
    4. Alsalmi, Noora & Ullah, Subhan & Rafique, Muhammad, 2023. "Accounting for digital currencies," Research in International Business and Finance, Elsevier, vol. 64(C).
    5. Diego Valentinetti & Michele A. Rea, 2022. "Blockchain e bilancio di esercizio: verso una convergenza di interessi "distribuita"?," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2), pages 15-40.
    6. Nguyen Phu Giang & Hoang Thi Tam, 2023. "Impacts of Blockchain on Accounting in the Business," SAGE Open, , vol. 13(4), pages 21582440231, December.

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