Impact of Blockchain Technology on Financial Management and Accounting Practices

Abstract

Blockchain technology has emerged as a transformative digital infrastructure with the capacity to reshape financial management and accounting practices across industries. Its core characteristics—decentralization, immutability, transparency, and automated execution through smart contracts—offer significant potential to improve data integrity, audit efficiency, financial reporting accuracy, and trust among stakeholders. This paper systematically examines the theoretical foundations of blockchain, its mechanisms, and its implications for corporate financial operations, accounting information systems, auditing processes, internal controls, and regulatory compliance. Based on survey data and case studies from global enterprises, the study also assesses the challenges limiting blockchain adoption, including scalability constraints, interoperability issues, regulatory uncertainty, and talent shortages. The research concludes by proposing a development roadmap for enterprises seeking to integrate blockchain into their financial and accounting functions. The findings indicate that blockchain can substantially reduce fraud risks, enhance real-time reporting, and improve cost efficiency, though its benefits depend on organizational readiness and supportive regulatory environments.