What is Triple-Entry and how does it work? This issue has different parts; in this article on shetcoiner site, we want to examine all parts of it together. So stay with us until the end of this article.
What is triple-entry accounting?
Single-entry accounting problems became the starting point for the search for a more comprehensive structure, and thus, double-entry accounting emerged. This new form was created almost 600 years ago with the aim of making the accounting system more comprehensive, so the accountant keeps two books instead of one. One for incoming and the other one for outgoing. “At first there was single-entry accounting; He just wrote down what happened. Then came a dual incoming and what happened had to be explained by another argument. Although the two-incoming accounting method was much more advanced and efficient than single-entry accounting, there were still several drawbacks. In Nain led to the emergence of triple accounting.
The imperfections of double-entry accounting led to the need for an economic-level accounting system, a system that helps eliminate a huge amount of paperwork and the way for a flawless and reliable accounting system. Thus, three-incoming accounting is one step ahead of traditional two-input accounting. A case that frees accountants and companies from tedious troubleshooting and helps to dispel the mistrust, fraud or manipulation they face. Now we want to examine how this triple-incoming accounting works.
How does triple-incoming accounting work?
An outstanding concept by Carnegie Mellon University professor, triple accounting, provides a framework for a new and complex way of doing accounting. This concept came to the fore in recent years when it became associated with and popularized Blockchain technology; because people believe that accounting should no longer be completely private. Understanding what the Blockchain is and how does it work is essential? Simply, Blockchain refers to a digital office that is distributed across multiple locations to ensure global security and ease of access. Currently, this technology is mainly used for Bitcoins and other crypto currencies and has recently been introduced in accounting processes.
The term accounting with triple entry is somewhat misleading because there is no triple entry. Instead, a third component is added to the debt and credit system. Therefore, instead of having their own offices for the transaction, individual companies perform a contract that seems to cover all aspects of the transaction. What was the product, who is the seller, who is the buyer, etc.
and above all, it has a digital signature. As a result of the three-incoming accounting system, all accounting incomings are encrypted by a third input, thus acting as a deterrent to financial manipulation and fraud.
In this article, we have explored Triple-Entry on shetcoiner site; we also examined its relationship with the Blockchain.
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