How large corporations can improve accounting efficiency through blockchain
How to increase internal efficiency of large corporates?
The tasks of increasing the internal efficiency of large corporates as well as internal accounting of resources are very acute. Without such an account and the initial data, it is impossible to prepare organizational changes and setting new business goals.
With this in mind, how can the organization of accounting become more efficient? To achieve this goal, there are many tools, including ERP, various systems of analytics and planning, as well as their integration links. But, despite the many tools there are, there is no single and universal system — after all, the business objectives and goals of companies are significantly different.
How does Blockchain create a new accounting infrastructure?
We from Intrachain strongly believe that blockchain is the right way to create a new accounting infrastructure for distributed enterprises.
With the reincarnation of blockchain technology, accounting systems are experiencing their second birth and the tokenization of business processes no longer seems artificial. Using a token as one of the metrics for evaluating the process, you can produce targets, ratings, statistics, and so on.
Quasi-money — for instance bonuses, points, miles — has long been used in corporate accounting systems, HR systems as well as business games, but never before was this quasi-money so close to real money and, most importantly, so close to money that is technically impossible to replace, select and assign. Using a token as an internal means of controlling effectiveness within a group of companies, creating a closed environment for handling a token, you can build an effective mechanism for accounting resources and significantly simplify the real business procedures between legal entities. Such use of the blockchain and token, in the form of accounting and control tools, allows creating an automated integration infrastructure between legal entities within the group of companies.
How are tokens implemented in the Intrachain system?
In our Intrachain system, we implemented a mechanism for financial transactions between companies using ICT tokens. An internal accounting system, built on token transactions, allows you to completely get rid of procedures as accounting reconciliation under contracts between legal entities at the end of the reporting period. Tokenization of contractual relationships within a group of companies can create significant transparency in such financial procedures as: payment of services within the holding, domestic lending, transfer of profits, liquidation of dividends, and others.
Speaking about the technical side of the issue, Intrachain is an intra-corporate blockchain based on Ethereum, in which the movement of tokens between corporate purses automatically replicates the real financial relationship between companies, for example, in one holding company or simply entering the eco-system Intrachain. This is achieved in two ways — smart contracts that repeat the terms of real contracts, as well as API interfaces to ERP systems of legal entities. Additionally, in order to detail and eliminate conflicts when agreeing the amount of work performed in Intrachain, the Process Mining system functions, which ensures that hours worked in the project are taken into account and are automatically reconciled between the Customer and the Contractor.
Many processes like billing procedures, notification of counterparties, payment of bills, and others are implemented in the Intrachain system. Those processes are driven from the ERP and run independently, creating transactions within the internal corporate blockchain. At the beginning of the organization of the process of interaction of legal entities through the block, we create groups of smart contracts that are written on Solidity. These smart contracts are now not too complex and are quite suitable for typical service contracts. The execution time of the transaction is now almost instantaneous and is regulated by the complexity of the mining algorithm, which in the internal corporate environment cannot be too complicated.
Due to the presence in the intracorporate block of information about the transactions performed under the contracts and the volume of the transferred tokens, it is possible to completely exclude the accounting data reconciliation procedure at the end of the reporting period due to the fact that each legal entity has access to a single distributed database of transactions.
