FROM DOUBLE-ENTRY TO TRIPLE-ENTRY: THE EVOLUTION OF ACCOUNTING IN THE BLOCKCHAIN ERA

Abstract

This study examines the transformative potential of blockchain technology on the double-entry accounting system, which forms the foundation of modern accounting. Despite its revolutionary nature, double-entry accounting has limitations, such as susceptibility to errors and fraud, as well as labor and time intensity. Blockchain-based triple-entry accounting offers potential solutions to these limitations. Accordingly, the study explores the evolution of the double-entry system, the interaction between blockchain technology and accounting, the development of the triple-entry system, and its potential benefits and challenges. A literature review was conducted, and secondary data were analyzed. Findings indicate that the triple-entry system offers advantages such as transparency, enhanced stakeholder trust, error and fraud reduction, real-time and continuous auditing, data integrity, and reduced reporting costs. However, challenges include organizational resistance to change, training qualified professionals, technological infrastructure costs, cybersecurity risks, and the need for external auditing and trust in private blockchain structures. Thus, while integrating the triple-entry system into businesses, both opportunities and challenges highlighted in this study should be considered. The findings contribute to the literature on the impact of blockchain on double-entry accounting and guide researchers and practitioners.

Keywords

• Accounting
• Blockchain
• Double Entry Accounting
• Triple Entry Accounting

ÇİFT TARAFLI KAYITTAN ÜÇ TARAFLI KAYDA: BLOK ZİNCİRİ ÇAĞINDA MUHASEBENİN DÖNÜŞÜMÜ

Abstract

Bu çalışma modern muhasebenin temelini oluşturan çift taraflı kayıt sisteminin blok zinciri teknolojisi ile olan dönüşüm potansiyelini incelemektedir. Devrimsel bir yaklaşım olmasına rağmen çift taraflı kaydın hata ve hileyi önleme, yoğun emek ve zaman ihtiyacı gibi sınırlılıkları mevcuttur. Blok zinciri temelli üç taraflı kayıt sistemi bu sınırlılıklara cevap olma potansiyeline sahiptir. Buradan hareketle çalışmada çift taraflı kayıt sisteminin gelişimi, blok zinciri teknolojisi ve muhasebe etkileşimi, üç taraflı kayıt sisteminin gelişimi, potansiyel fayda ve zorlukları incelenmektedir. Çalışmada literatür taraması yapılmış ve ikincil kaynaklardan elde edilen veriler analiz edilmiştir. Bulgulara göre üç taraflı kayıt sistemi şeffaflık, paydaşlar arası güven, hata ve hile azaltma, gerçek zamanlı ve sürekli denetim, veri bütünlüğü, raporlama maliyetlerinde azalma şeklinde avantajlara sahiptir. Diğer taraftan işletmelerde değişime karşı direnç, uzman yetiştirme ve teknolojik altyapı maliyetleri, siber güvenlik, özel blok zinciri yapısında dış denetim ve güven ihtiyacı meseleleri sistemin temel zorluklarıdır. Buna göre üç taraflı kayıt sisteminin işletmelere entegrasyonu sürecinde çalışmada belirtilen fırsatların yanında zorluklar da dikkate alınmalıdır. Bulgular genel kapsamda blok zincirinin çift taraflı kayda etkileri üzerine literatüre katkı sağlamakta; araştırmacı ve uygulayıcılara yol göstermektedir.

Keywords

• Muhasebe
• Blok Zinciri
• Çift Taraflı Kayıt
• Üç Taraflı Kayıt

References

1. Akter, M., Kummer, T. F. ve Yigitbaşıoglu, O. (2024). Looking beyond the hype: The challenges of blockchain adoption in accounting. International Journal of Accounting Information Systems, 53, 1-20. https://doi.org/10.1016/j.accinf.2024.100681
2. Angelis, J. ve Da Silva, E. R. (2019). Blockchain adoption: A value driver perspective. Business horizons, 62(3), 307-314. https://doi.org/10.1016/j.bushor.2018.12.001
3. Aslan, Ü. ve Türün, C. Ş. (2018). Blok zincir teknolojisi ve üç yanlı muhasebe sistemi. İzmir İktisadi ve İdari Bilimler Konferansı Bildiri Kitabı, 2559-2568. Detay Yayıncılık.
4. Atabey, N. A., Yılmaz, B. ve Yılmaz, H. (2018). Ortaçağ Avrupa’sında iktisadi ve siyasi tarih çerçevesinde muhasebe ihtiyacı ve çift taraflı kayıt tekniği: Lisans ve lisans üstü öğrenciler için bir rehber. Muhasebe ve Finans Tarihi Araştırmaları Dergisi, 8(15), 7-38.
5. Bellucci, M., Cesa-Bianchi, D. ve Manetti, G. (2022). Blockchain in accounting practice and research: Systematic literature review. Meditari Accountancy Research, 30(7), 121-146. https://doi.org/10.1108/MEDAR-10-2021-1477
6. Bonsón, E. ve Bednárová, M. (2019). Blockchain and its implications for accounting and auditing. Meditari Accountancy Research, 27(5), 725-740. https://doi.org/10.1108/MEDAR-11-2018-0406
7. Boyle, T. (2001). GLT and GLR: Conceptual architecture for general ledgers. https://linas.org/mirrors/www.gldialtone.com/2001.07.14/GLT-GLR.htm adresinden 12 Ekim 2024 tarihinde alınmıştır.
8. Burchell, S., Clubb, C., Hopwood, A., Hughes, J. ve Nahapiet, J. (1980). The roles of accounting in organizations and society. Accounting, Organizations and Society, 5(1), 5-27.

9. Bushman, R. M. ve Smith, A. J. (2003). Transparency, financial accounting information and corporate governance. Economic Policy Review, 9(1), 65-87.
10. Cai, C. W. (2021). Triple‐entry accounting with blockchain: How far have we come?. Accounting and Finance, 61(1), 71-93. https://doi.org/10.1111/acfi.12556
11. Dai, J. (2017). Three essays on audit technology: audit 4.0, blockchain, and audit app [Doktora tezi]. Rutgers University-Graduate School-Newark.
12. Dai, J. ve Vasarhelyi, M. A. (2017). Toward blockchain-based accounting and assurance. Journal of Information Systems, 31(3), 5-21. https://doi.org/10.2308/isys-51804
13. Deloitte. (2017). Blockchain in banking: Disruptive innovation. https://www2.deloitte.com/content/dam/Deloitte/in/Documents/strategy/in-strategy-innovation-blockchain-in-banking-noexp.pdf adresinden 14 Ekim 2024 tarihinde alınmıştır.
14. Deloitte. (2024). Blockchain technology a game-changer in accounting? https://www.deloitte.com/mt/en/services/audit-assurance/perspectives/mt-blockchain-a-game-changer-for-audit.html adresinden 08 Aralık 2024 tarihinde alınmıştır.
15. Demirkan, S., Demirkan, I. ve McKee, A. (2020). Blockchain technology in the future of business cyber security and accounting. Journal of Management Analytics, 7(2), 189-208. https://doi.org/10.1080/23270012.2020.1731721
16. Dyball, M. C. ve Seethamraju, R. (2024). Blockchain: Exploring its impact on the business models of Australian accounting firms. Information Systems Frontiers, 1-20. https://doi.org/10.1007/s10796-024-10547-1
17. Faccia, A. ve Mosteanu, N. R. (2019). Accounting and blockchain technology: From double-entry to triple-entry. The Business and Management Review, 10(2), 108-116.
18. Fuller, S. H. ve Markelevich, A. (2020). Should accountants care about blockchain? Journal of Corporate Accounting and Finance, 31(2), 34-46. https://doi.org/10.1002/jcaf.22424
19. Giroux, G. (2017). Accounting history and the rise of civilization (3. Baskı). Business Expert Press. Grigg, I. (2005). Triple entry accounting. Systemics Inc, 1-10.
20. Grigg, I. [@Iang_fc]. (2019, 11 Ekim). The term "blockchain" was first used in 2008 in the Bitcoin paper to describe the data structure. [Tweet]. X. https://x.com/iang_fc/status/1182660123245928449
21. Grigg, I. (2024). Triple entry accounting. Journal of Risk and Financial Management, 17(2), 1-12. https://doi.org/10.3390/jrfm17020076
22. Güngür, G. (2019). Blokzincir (Blockchain) teknolojisinin muhasebe ve denetime etkisi. Vergi Raporu, (236), 157-163. https://doi.org/10.29067/muvu.678681
23. Güvemli, O. (1995). Türk devletleri muhasebe tarihi Osmanlı İmparatorluğu’na Kadar (1. Cilt). Avcıol Basım.
24. Hambiralovic, M. ve Karlsson, R. (2018). Blockchain accounting in a triple-entry system its implications on the firm and its stakeholders; a case study on the request network. https://lup.lub.lu.se/luur/download?func=downloadFileverecordOId=8953732vefileOId=8953736 adresinden 07 Kasım 2024 tarihinde alınmıştır.
25. Han, H., Shiwakoti, R. K., Jarvis, R., Mordi, C. ve Botchie, D. (2023). Accounting and auditing with blockchain technology and artificial Intelligence: A literature review. International Journal of Accounting Information Systems, 48, 1-16. https://doi.org/10.1016/j.accinf.2022.100598
26. Handayanto, A. B., Pontoh, G. T. ve Ferdiansah, M. I. (2024). The future of accounting: Triple-entry accounting enabled by blockchain. In Proceedings of the 8th International Conference on Accounting, Management and Economics (ICAME 2023) (ss. 628-666). Atlantis Press.
27. Hiçşaşmaz, M. (1958). Muzaaf muhasebe usulünün kurucusu Luca Paciolo eseri ve tesirleri. Ajans Türk Matbaası.
28. Ibañez, J. I., Bayer, C. N., Tasca, P. ve Xu, J. (2021a). The efficiency of single truth: Triple-entry accounting. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3770034 adresinden 08 Kasım 2024 tarihinde alınmıştır.
29. Ibañez, J. I., Bayer, C. N., Tasca, P. ve Xu, J. (2021b). Triple-entry accounting, blockchain and next of kin: Towards a standardisation of ledger terminology. https://arxiv.org/pdf/2101.02632 adresinden 08 Kasım 2024 tarihinde alınmıştır.
30. Ibañez, J. I., Bayer, C. N., Tasca, P. ve Xu, J. (2023). REA, triple-entry accounting and blockchain: Converging paths to shared ledger systems. Journal of Risk and Financial Management, 16(9), 1-20. https://doi.org/10.3390/jrfm16090382
31. Ijiri, Y. (1982). Triple-entry bookkeeping and momentum income. https://gwern.net/doc/bitcoin/1982-ijiri-tripleentrybookkeepingandincomemomentum.pdf#page=31.13 adresinden 08 Kasım 2024 tarihinde alınmıştır.
32. Ijiri, Y. (1986). A framework for triple-entry bookkeeping. Accounting Review, 61(4), 745-759.
33. İbrahim, A. (2018). Does blockchain mean higher transparency in the financial sector?. Revista de Contabilidady Dirección, 27, 71-82.
34. Kitsantas, T. ve Chytis, E. (2022). Blockchain technology as an ecosystem: Trends and perspectives in accounting and management. Journal of Theoretical and Applied Electronic Commerce Research, 17(3), 1143-1161. https://doi.org/10.3390/jtaer17030058
35. Klynveld Peat Marwick Goerdeler. (2021). Blockchain: What does it mean for the audit? https://assets.kpmg.com/content/dam/kpmg/za/pdf/2021/blockchain-what-does-it%20mean-for-the-audit.pdf adresinden 01 Kasım 2024 tarihinde alınmıştır.
36. Liu, M., Wu, K. ve Xu, J. J. (2019). How will blockchain technology impact auditing and accounting: Permissionless versus permissioned blockchain. Current Issues in Auditing, 13(2), 19-29. https://doi.org/10.2308/ciia-52540
37. Mabo, I., Iroko, O. ve Oyenekan, O. (2022). The advent of the triple entry accounting: Implications for accountants and auditors. S. Aghili (Ed.), The Auditor’s guide to blockchain technology (s. 63-75) içinde. CRC Press.
38. Maiti, M., Kotliarov, I. ve Lipatnikov, V. (2021). A future triple entry accounting framework using blockchain technology. Blockchain: Research and Applications, 2(4), 1-8. https://doi.org/10.1016/j.bcra.2021.100037
39. McCarthy, W. E. (1980). Construction and use of integrated accounting systems with entity-relationship modeling. P. P. S. Chen (Ed.), Entity-relationship approach to systems analysis and design (s. 625–637) içinde. North Holland Publishing Company.
40. McCarthy, W. E. (1982). The REA accounting model: A generalized framework for accounting systems in a shared data environment. The Accounting Review 57, 554-578.
41. Mik, E. (2017). Smart contracts: Terminology, technical limitations and real-world complexity. Law, Innovation and Technology, 9(2), 269-300.
42. Mohanty, D. (2018). BlockChain from concept to execution. BitCoin, Ethereum, Quorum, Ripple, R3 Corda, Hyperledger Fabric/SawTooth/Indy, MultiChain, IOTA, CoCo. BPB Publications.
43. Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf adresinden 01 Kasım 2024 tarihinde alınmıştır.
44. Odom, C. (2013). Triple-signed receipts. https://opentransactions.org/wiki/Triple-Signed_Receipts adresinden 08 Kasım 2024 tarihinde alınmıştır.
45. O'Leary, D. E. (2017). Configuring blockchain architectures for transaction information in blockchain consortiums: The case of accounting and supply chain systems. Intelligent Systems in Accounting, Finance and Management, 24(4), 138-147.
46. O'Leary, D. E. (2019). Some issues in blockchain for accounting and the supply chain, with an application of distributed databases to virtual organizations. Intelligent Systems in Accounting, Finance and Management, 26(3), 137-149. https://doi.org/10.1002/isaf.1457
47. Petrović, T., Tanasić, L. ve Radovanović, L. (2022). Implications of the application of blockchain technology in accounting and public finance. Novi Ekonomist, 16(2), 54-60.
48. Rahmawati, M. I., Sukoharsono, E. G., Rahman, A. F. ve Prihatiningtias, Y. W. (2023). Demistifying triple-entry accounting (TEA): Integrating the Block. Ninth Padang International Conference on Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2022), 23-31. https://doi.org/10.2991/978-94-6463-158-6_3,
49. Rückeshäuser, N. (2017). Do we really want blockchain-based accounting? Decentralized consensus as enabler of management override of internal controls. 13th International Conference on Wirtschaftsinformatik 2017 Proceedings, 16-30.
50. Salehi, M. ve Khodabandeh-Oghaz, R. (2024). The effect of blockchain on accounting. Journal of Facilities Management, 23(1), 1-27. https://doi.org/10.1108/JFM-08-2023-009
51. Schmitz, J. ve Leoni, G. (2019). Accounting and auditing at the time of blockchain technology: A research agenda. Australian Accounting Review, 29(2), 331-342. https://doi.org/10.1111/auar.12286
52. Sinha, S. (2020). Blockchain—opportunities and challenges for accounting professionals. Journal of Corporate Accounting and Finance, 31(2), 65-67. https://doi.org/10.1002/jcaf.22430
53. Skuhala-Karasman, M. (2024). Kotruljević's contributions to commerce and accounting: Historical perspectives. https://www.rit.edu/croatia/sites/rit.edu.croatia/files/docs/6_Skuhala_Karasman-Kotruljevic.pdf adresinden 01 Kasım 2024 tarihinde alınmıştır.
54. Staley, E. (1906). The guilds of Florence. MethuenveCo.
55. Szabo, N. (1997). Formalizing and securing relationships on public networks. http://myinstantid.com/szabo.pdf#page=3.23 adresinden 04 Kasım 2024 tarihinde alınmıştır.
56. Tanrıverdi, M., Uysal, M. ve Üstündağ, M. T. (2019). Blokzinciri teknolojisi nedir? Ne değildir?: Alanyazın incelemesi. Bilişim Teknolojileri Dergisi, 12(3), 203-217.
57. Tapscott, D. ve Euchner, J. (2019). Blockchain and the internet of value: An Interview with Don Tapscott Don Tapscott talks with Jim Euchner about blockchain, the Internet of value, and the next Internet revolution. Research-Technology Management, 62(1), 12-19.
58. Thakkar, P. (2019). How blockchain is redefining the rules of supply chain. https://thebossmagazine.com/blockchainsupply-chain/ adresinden 08 Aralık 2024 tarihinde alınmıştır.
59. Uçma-Uysal, T. ve Kurt, G. (2018). Muhasebede ve denetimde blok zinciri teknolojisi. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 23(2), 467-481.
60. Yadav, G. (2018). How blockchain will write a new era for accounting industry. https://hackernoon.com/how-blockchain-will-write-a-new-era-for-accounting-industry-f8832bf24167 adresinden 01 Kasım 2024 tarihinde alınmıştır.
61. Yu, T., Lin, Z. ve Tang, Q. (2018). Blockchain: The introduction and its application in financial accounting. Journal of Corporate Accounting and Finance, 29(4), 37-47. https://doi.org/10.1002/jcaf.22365
62. Walker, S. P. (2016). Revisiting the roles of accounting in society. Accounting, Organizations and Society, 49, 41-50.
63. Zhang, Y., Xiong, F., Xie, Y., Fan, X. ve Gu, H. (2020). The impact of artificial intelligence and blockchain on the accounting profession. IEEE Access, 8, 110461-110477. https://doi.org/10.1109/ACCESS.2020.3000505