Version 1
: Received: 29 August 2024 / Approved: 30 August 2024 / Online: 30 August 2024 (23:36:40 CEST)
How to cite:
Nofel, M.; Marzouk, M.; Elbardan, H.; Saleh, R.; Mogahed, A. From Sensors to Standardized Financial Reports: A Proposed Automated Accounting System Integrating IoT, Blockchain, and XBRL. Preprints2024, 2024082274. https://doi.org/10.20944/preprints202408.2274.v1
Nofel, M.; Marzouk, M.; Elbardan, H.; Saleh, R.; Mogahed, A. From Sensors to Standardized Financial Reports: A Proposed Automated Accounting System Integrating IoT, Blockchain, and XBRL. Preprints 2024, 2024082274. https://doi.org/10.20944/preprints202408.2274.v1
Nofel, M.; Marzouk, M.; Elbardan, H.; Saleh, R.; Mogahed, A. From Sensors to Standardized Financial Reports: A Proposed Automated Accounting System Integrating IoT, Blockchain, and XBRL. Preprints2024, 2024082274. https://doi.org/10.20944/preprints202408.2274.v1
APA Style
Nofel, M., Marzouk, M., Elbardan, H., Saleh, R., & Mogahed, A. (2024). From Sensors to Standardized Financial Reports: A Proposed Automated Accounting System Integrating IoT, Blockchain, and XBRL. Preprints. https://doi.org/10.20944/preprints202408.2274.v1
Chicago/Turabian Style
Nofel, M., Reda Saleh and Aly Mogahed. 2024 "From Sensors to Standardized Financial Reports: A Proposed Automated Accounting System Integrating IoT, Blockchain, and XBRL" Preprints. https://doi.org/10.20944/preprints202408.2274.v1
Abstract
Modern advances in technology have increased the demand for traditional accounting systems to be upgraded for real-time data processing, security, and standardized reports. Thus, this paper proposes a new accounting information system that integrates IoT, blockchain, and XBRL. The proposed system aims to automate the accounting process by using IoT to collect data and send it automatically to a blockchain, which acts as a database that will generate journal entries automatically through smart contracts. XBRL will then be used as an output method for standardized financial reports based on the data transferred from the blockchain. This paper uses a qualitative research design based on semi-structured interviews with 13 industry experts from IT engineering, academia, and financial systems analysis. NVivo software was used to conduct a thematic analysis of interview transcripts. The findings revealed the technical feasibility, challenges, and benefits of the proposed integration and identified the most efficient mechanism for data transmission across the three technologies. The paper concluded that while integration complexity and user adoption are challenging, this integrated system can revolutionize accounting by enabling real-time data capture, automation of essential operations, data security, and integrity improvements. To our knowledge, this is the first paper to develop a comprehensive accounting information system framework using IoT, blockchain, and XBRL to automate data collection, improve data security, and streamline financial reporting. The study's potential to impact accounting systems and financial reporting research and practice emphasizes its importance.
Keywords
blockchain; Internet of Things (IoT); eXtensible Business Reporting Language (XBRL); smart contract; accounting system; automation
Subject
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
