Blockchain Accounting Network
THE ACCOUNTING WORLD IS CHANGING
Using smartphones, cloud based computing, and virtual office technology, today’s managers can do business anytime, anywhere. So should their accountant. A CPA should have access to a powerful accounting system that enables them to access accurate, timely, verifiable accounting data that helps them make decisions and know financial statement effects immediately, 24 hours a day, seven days a week. The system should be as easy to use as online banking and be completely secure. This is the purpose of Schultz & Co. Data Systems.
On February 23, 2001 the financial world changed. That is the day Arthur Andersen dated its Independent Auditors’ Report on the December 31, 2000 financial statements for Enron Corporation. The fallout of this was the loss of $68 Billion in Enron capital and the accounting world has never been the same since. The purpose of an audit by an independent Certified Public Accountant is to issue an opinion on the fairness and accuracy of an entity’s financial statements. Since the failure of Arthur Andersen, the American Institute of Certified Public Accountants (AICPA) and the accounting profession has been under constant scrutiny and criticism. The response from the accounting and auditing profession has been unacceptable. They have issued numerous accounting and auditing standards that amount to little more than filling out lots of checklists, tried to change peer review programs and oversight that didn't work to begin with, and implemented an AICPA Enhancing Audit Quality (EAQ) initiative. The federal government became involved with the passage of the Sarbanes-Oxley Act which created the Public Company Accounting Oversight Board to oversee the audits of public companies and certain other financial statement issuers. Despite these efforts, according to various reports from the EAQ and PCAOB, audit quality and reliability continues to decline. As recently as September, 2019, reports show big four accounting firms bungle a third of US audits. Additional reports show the AICPA's own peer review process nears a 100% failure rate. This was recently highlighted by an audit report attesting to the fair presentation of the financial statements from General Electric (GE) by KPMG. In fact, a recent study by the AICPA's own Center for Audit Quality published a survey that said 55% percent of investors have only some, very little, or no confidence in audited financial statements. The AICPA is the organization that writes auditing standards! Many important decisions are being made on very bad financial data. Financial statement audits are like a dead carcass. The longer we wait to bury it, the more it's going to stink.
There must be a better solution.
WHAT IS BLOCKCHAIN?
Blockchain today is what the internet was in the early 1990’s. A new and powerful technology that can change the world. Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.
A blockchain is, in the simplest of terms, a time-stamped series of immutable record of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data (i.e. block) are secured and bound to each other using cryptographic principles (i.e. chain). The goal of blockchain is costless verification of transactions and network efficiency. Blockchain promises to deliver accurate, verifiable, and timely financial data without the need for expensive and underperforming audits. What an amazing time we live in!
WHO USES BLOCKCHAIN?
- 1. American Express uses blockchain to give vendors power over membership rewards.
- 2. MetLife is using blockchain smart contracts to execute terms of their insurance agreements.
- 3. Ford Motor Company was granted a patent for its blockchain application that controls traffic flow.
- 4. Siemens AG is implementing a blockchain startup that helps neighbors buy and sell solar energy directly from each other.
- 5. Nestle is using blockchain technology to eliminate unnecessary middlemen from the way they ship goods.
- 6. Anheuser-Busch announced it is using a blockchain platform aimed at simplifying freight logistics in its brewski shipments.
- 7. Walmart has been revolutionary in its application of blockchain technology. They implemented an application on their pork supply chain. Using blockchain, Walmart is able to track every product from farm to fork in real-time.
- 8. Bitcoin and other cryptocurrencies very application uses blockchain technology. However, Bitcoin runs on a blockchain application. Blockchain is not Bitcoin.
- 9. Schultz & Co. CPA’s is implementing blockchain smart contracts to track workflow and corroborate financial data using costless verification. Smartcontracts can now be uploaded to a blockchain-technology-secured, cloud-based network using our own custom-built, powerful, Ethereum node.
- 10. You and many, many more. Blockchain is changing the world. It is likely already having an effect on your daily activities. Like the internet was in its infancy, it will change the way you conduct your business.
WHAT IS SCHULTZ & CO.'S BLOCKCHAIN ACCOUNTING NETWORK?
BAN is the brainchild of Brandon Schultz who developed BAN while attending the Executive Program at MIT. As Brandon puts it, "We are taking a revolutionary approach to the role of the CPA. What were the results of the last fiscal year, what were the tax effects of the decisions management made, and what effect did changes in the regulatory environment have? That has been the role of the CPA of yesterday. Today’s role of the CPA should be what are the financial results today, what is the effect of decisions management is making now, and what effect are changes in the regulatory environment having? Tomorrow’s CPA should be able to provide answers to what will be the results of the next fiscal year, what will be the results of management’s decisions, and what effects will change in the regulatory environment have?"
A company’s accounting system should be the backbone of any company. BAN, is an accounting system utilizing the power of blockchain technology, incorporating smart contracts and even artificial intelligence to empower yesterday’s accountant to be tomorrow’s CPA.
You are one call away from learning how empowering costless verification and bootstrapping networks changes the way you do almost everything. You will find our solution.......elegant.