Avalara, the Seattle-based taxation and accounting software company is the latest company to adopt Bitcoin technology. With the majority of the global banks and financial institutions moving towards the distributed ledger technology, Avalara is in the process of adapting to the changing industry landscape.
Started in 2004, Avalara has been offering its cloud-based taxation and compliance systems to numerous businesses across the world. With Avalara, customers can automate the Sales and Use Tax, Value Added Tax, Lodging Tax, Excise Tax and Communications Tax. As the company works on including the new technology into its process, we can expect Avalara to use smart contracts for automation and the blockchain to record and manage transaction records of its customers in the near future.
The use of blockchain technology for creating, managing and storing various types of records is already well known. It is already being used to manage medical records, intellectual property rights, property registration and more. The security and immutability features of blockchain come in handy in these applications.
According to a report on Accounting Today, Michael Cohn mentions the views about blockchain technology expressed by the company’s management at Avalara’s Crush New Orleans Conference. The company’s executive vice president of engineering Peter Horadan compares blockchain technology to innovations like the cell phone. He also explains that by adopting blockchain technology, the company will be capable of using shared ledgers where everyone with access can view the same set of journal entries. This will allow Avalara to manage its customers’ records in real time.
In the same event, Scott McFarlane referring to the adoption of blockchain technology was quoted saying
“We live this life, a dual life. We’re one of the fastest-growing software companies out there, and we’re really pretty damned good doing sales tax and transactional tax along the way.”
Blockchain technology has come a long way since Bitcoin was introduced about 8 years ago. It is now being widely used across industries. We can expect the adoption to grow in the coming days.
Ref: Accounting Today