Blockchain Application in the Accounting Information System: Advantages, Challenges, and Future Research Directions
Wajde Baiod, Janet Light, Mostaq M. Hussain · 2025
Abstract As it is known, the accounting information system (AIS) plays a significant role in the business ecosystem by recording and processing financial and accounting data and reporting the produced information to all relevant parties for decision-making. However, its used methods and systems, including double-entry bookkeeping and enterprise resource planning (ERP) systems, have limitations, especially in terms of trust and reliability concerns for stakeholders and the possible scope for records manipulation and fraud. The application of blockchain technology is believed to enhance the reliability of the AIS and addresses many of its current limitations. Blockchain can offer numerous benefits if used to manage AIS functions through enhanced trust, reliability, and transparency, increased efficiency, reduced costs and fraud, improved accounting information quality and real-time accounting. Nevertheless, the adoption and implementation of blockchain in the AIS are associated with several technical and nontechnical challenges which are not easy to address and could limit the wide technology adoption in the immediate future. Considering that a full understanding of the benefits and challenges of adopting blockchain in the AIS still needs more clarification, this chapter examines blockchain technology and its implications for the AIS. It reviews blockchain characteristics and its benefits to the AIS, discusses its possible integration into the AIS, outlines adoption and implementation challenges, and suggests critical avenues for future research.