Adding Bitcoin SV (BSV) to accounting systems can save millions lost to corporate fraud every year. Even if a company and its employees are 100% honest, complying with measures to prove legitimacy is an increasing time and cost burden. The Abendum platform, from blockchain company UNISOT, solves these problems with its “triple entry accounting dashboard” set of tools designed for businesses that could lower audit costs more than 50%.
Tracking records and finances with double entry bookkeeping is a central principle in accounting, and keeping business operations running smoothly. One set of books records debits from one account, the other records equal amounts in credits to another. The books must balance.
Along with laws that govern how business is conducted, double entry accounting is central to wealth creation in a civilized society—that is, when applied and enforced. When mistakes, corruption and inefficiencies enter either system, potential wealth is lost.
Enter triple entry accounting, or, blockchain records added to the double entry process. Writing all transactions and activities on a permanent and externally-verified ledger creates a third record that’s electronic yet also secure. No one can manipulate the data once it’s written, since independent transaction processors on the Bitcoin network lock it in place. Accountants and auditors can, at any time years into the future, pull up complete records of everything.
Having complete and externally verifiable data records ready and available with a few keystrokes would be a valuable tool for businesses, saving time and money in an era where due diligence requirements for banks and auditors are becoming ever more stringent.
Linked data from around the world, instant audits
Torje Vingen Sunde, project architect and CFO at Abendum AS, noted that “fake invoice fraud” was an increasing problem for companies. Abendum’s Audit Data Analysis includes all information relevant to a signed invoice, financial and non-financial, linking them with data from different companies and sources, or different branches of the same country all over the world.
Abendum helps companies to increase the quality of accounting records so that auditors more easily comply with the ISA 500 international auditing standard, which determines whether a report is considered sufficient and appropriately complete for auditing. The desktop Document Integrator can issue invoices, receipts and contracts while the “DigSig” mobile app (used by an authenticated accountant or customer) can be used to legally sign invoices and contracts, while managing who is authorized to sign these documents. An Analysis Dashboard (desktop) component is used by an external third party (such as an auditor) to perform analytics on recorded events.
The MVP for Triple Entry Accounting on Blockchain is here! Abendum brings Accountability back to accounting and auditing records.
Try the Triple-Entry Accounting beta version powered by @UNISOT_ https://t.co/8LKapvUU5c pic.twitter.com/6raoi5QA3k
— Abendum (@AbendumAs) March 3, 2021
UNISOT’s expertise in the logistics and supply chain field led to Abendum’s creation. UNISOT is best known in the Bitcoin world for its SeafoodChain product, which uses a network of IoT sensors on packaging and applications on ordinary smartphones to track seafood from source to plate. Companies along the supply chain use the system to verify the consumable products at every step, and when completed a consumer can use their own version of the app to verify where their food came from (and where it went along the way).
UNISOT and Abendum AS CEO Stephan Nilsson said:
“Since most financial statements are the result of logistical operations, digitalization of logistics and supply chain operations will enable secure and automated provisioning of strong evidence in financial records.”
Bitcoin, but no Bitcoin knowledge required
Although Abendum uses Bitcoin transactions to process and record data, it’s not necessary to “understand Bitcoin” or “know how to use Bitcoin” to use the system. However, a basic understanding of how and why the Bitcoin BSV protocol, and its transactions and blockchain records, can produce compliant and secure records may be helpful in deciding to deploy the Abendum system in the first place.
Only Bitcoin BSV has the data processing capacity to run a system like Abendum, and at a reasonable cost. Other blockchains, like BTC and Ethereum, have prohibitively high fees per transaction or inadequate data capacity, making them unfit for the task. The BSV protocol allows for unbounded scaling and enough data capacity (through unlimited-size, on-chain transaction blocks) while keeping per-transaction fees to a tiny fraction of a cent.
Editor’s note: This article has been updated to provide more clarity on Abendum’s scope of work.
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