Blockchain development studio ConsenSys has announced a new launch coming with Balanc3 — a blockchain-based accounting platform. The Balanc3 team brings together an experienced group of blockchain engineers, accountants, executives, web developers, legal professionals, and entrepreneurs focused on driving innovative accounting solutions and transparency for cryptocurrency and token assets.
The Balanc3 platform gives users the ability to track cryptocurrency transfers and compile live financial reports which translate this data into formats that are well-understood by accountants and regulators. Balanc3’s foundational infrastructure for viewing and managing blockchain interactions will enable automated interplay between modules such as invoice tracking and payroll management in future releases.
The team behind the application has been working in stealth for over a year.
Financial Accountability for Token Sales
As the blockchain ecosystem of decentralized applications, token sales, and token holders grows there is an increasing need for financial transparency. Much like public companies that have their shares traded on secondary markets, tokens of decentralized applications are also traded on secondary markets. However, public companies are required by regulatory bodies to report to their investors and have their financial statements audited to quell the possibility of fraud. Balanc3 has developed the tools to provide this level of financial transparency for stakeholders in the blockchain industry.
New Opportunities + New Pain Points
Currently, applications which rely on managing and tracking token transfers in Ethereum face difficulties in linking their on-chain interactions to traditional reporting and compliance processes. These groups are seeing explosive growth as the ecosystem rapidly matures, but cryptocurrencies and token transfers are an entirely new type of interaction which does not naturally fit into legacy accounting systems. As a result, product owners and CFOs face difficulties in accounting for internal operations and ensuring tax compliance.
The ConsenSys team said:
“What we’ve built is a flexible set of utilities that are built to monitor on-chain transactions and transform that data into the traditional accounting formats needed for reporting and compliance. The resulting technology is a user-friendly bridge between the token world and traditional accounting systems.”
The Accounting Blockchain Coalition (ABC)
The ABC is an initiative started by Consensys’ Balanc3 team which empowers its members to gauge the impacts that blockchain technology brings to the accounting industry and drive innovation. Coalition members include accounting firms, accounting associations, standards-setting bodies, regulators, law firms, investors, and blockchain innovators. The members partake in monthly calls to educate each other on best practices around blockchain for the accounting industry, focusing on topics like valuation, financial statement presentation, and legacy systems upgrades.
Five ABC working groups were announced at the ABC Conference in June, which was attended by over 400 accounting and blockchain professionals at Microsoft Technology Center.
- Token Standards for Assets
- Assurance of Blockchain Companies
- Taxation of Digital Assets
- Digital Asset Management
- Enterprise Resource Planning (ERP) Systems
These working groups and the professionals involved will be setting the accounting guidance and standards around the accelerating blockchain industry.
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