Crypto and Bitcoin get all the hype. However, there is so much going on in the background so to speak with this exponential technology.
We talk to expert CPAs who are very passionate about Blockchain. They all strongly believe Blockchain will change their profession. We agree.
This discussion was sparked by the recent news of Walmart pushing blockchain onto its suppliers. What does that mean really? Are farms supplying to Walmart going to need to hire blockchain developers? One thing is for sure, Walmart is making a huge push so blockchain is not going away. Probably the first person these farms may turn to is their accountant.
This leads us to an industry changing transformation where today’s accountants will need to re-skill and re-invent themselves as technical accountants for tomorrow. Also, what will CFOs of the future look like? How will they work with CIOs and engineers?
We discuss these topics and so much more in this fascinating conversation.
Origin of Discussion
Differences Betwen Blockchain Today and Internet Boom (2:15)
2:15- Original internet vs. internet 2.0
Blockchain adoption is going to be slow (5-20 years)
Adoption will trickle down from the big players in the economy (e.g. Walmart)
This will have a big impact on accounting firms' business.
Walmart effects on Accounting (9:37)
9:37- What's the big box up to? What's changing in accounting?
Need to analyze a large scale adoption over the course of a year. Lots of discovery especially on the accounting side.
Can be difficult to convert block ledger data into easily-viewable information for CPAs to analyze.
Accounting firms are going to need to educate themselves on blockchain tech and tools.
Can accounting firms evolve to support blockchain and ledger ops? (13:38)
13:38- Will accounting firms rise to the challenge?
There will be a noticeable gap between the younger and the more mature accountant professionals.
Blockchain knowledge isn't available from big four consulting either. Big market opportunity.
Navigating through blockchain solutions is clunky at this time.
The evolution of the CFO (17:25)
Ensuring the transactions
Data integrity and transparency
Communication and processes around how to get data onto their blockchains
Moving from organizing transactional data to interpreting it and applying insights.
Applying better predictive analysis especially around inventories and more.
Customer loyalty becoming more measureable.
Challenges from Increasing Need for Tech Knowledge In Business Roles (25:21)
25:21- Business ops challenges in a more technical world
CFO and CIO will need to work more closely than ever before.
Engineering and accounting will have to collaborate more out of necessity.
Accountants will need to begin building programming competency.
Key skill of the future: communication.
Risks of blockchain adoption (30:29)
30:29- what lurks beneath the surface? How does an organization start/navigate?
Lack of education and understanding. What value is being exchanged in cyptocurrencies and blockchain techs?
Too easy to get on the hype train and take advantage of the average person.
Cryptocurrency adoption will be much slower than blockchain tech.
Good place for accountants to start? (37:31)
37:31- Where can professionals start the education process?
The Certified Bitcoin Professional certification
Understand the basics of Bitcoin
Accountants: get the fundamentals about how blockchain works
Research, research, research + insatiable curiosity.
John W. Masotti is the Founder of MM Blockchain Advisory, LLC and the managing partner of Masotti & Masotti, LLC, a multi-generational CPA firm founded in 1960. John is a member of the Advisory Board of the Yale School of Medicine Eye Center. He is also a member of the American Institute of Certified Public Accountants, Connecticut Society of Certified Public Accountants, New York State Society of Certified Public Accountants, and the Institute of Managerial Accountants. He is a Certified Blockchain Expert, which is a certification offered by the Blockchain Council, of which he is also a member. He is also a Certified Bitcoin Professional, which is a certification offered by the Cryptocurrency Certification Consortium.
Sean P. Larkin is the Founder of LBC, an Outsourced CFO Firm based in Fairfield County, CT which specializes in Blockchain and Cryptocurrencies. LBC is strategically aligned with Blockchain Advisory MMBA and is currently engaged in numerous areas within the blockchain and cryptocurrency space. He is a Member of the Blockchain Council and has received Certifications as Certified Blockchain Expert and Certified Hyperledger Developer. He is also a Certified Bitcoin Professional, which is a certification offered by the Cryptocurrency Certification Consortium. He advocates individual and corporate education of the cryptocurrency and distributed ledger markets as a necessity in today’s environment.
Vince LoRusso, CPA is the Chief Product Officer at Trueup.co. With over 10 years experience in the field, he started TrueUp, a gamified learning platform that helps companies measure and benchmark skills of professionals whether to validate job candidates or identify employee skill gaps so you can personalize training. TrueUp is one of four companies selected as a finalist in the AICPA and CPA.com Startup Accelerator and thanks to the Association they are driving talent skills forward and empowering professionals to go beyond their limits.