Decentralized Accounting System Using Blockchain Technology
Mrs. Suvarna Patil 1, Mayur Mohite 2, Harshal Gharat 3, Abhijeet Chavan 4, Anushka Kele 5
1 2 3 4 5 Marathwada Mitra Mandal’s College Of Engineering, Pune, Maharashtra, India.
1 2 3 4 5 Dept Of Computer Engineering, Pune, Maharashtra, India
1 suvarnapatil@mmcoe.edu.in
2 mayurmohite1562@gmail.com
3 harshalgharat1918@gmail.com
4 chavanabhijeet2003@gmail.com
5 anushkakele1@gmail.com
Abstract - As digital transformation continues to reshape the accounting landscape, the limitations of traditional centralized systems such as vulnerability to fraud, lack of transparency, and inefficiencies in manual processes have become increasingly apparent. This research presents the real-world deployment of a blockchain-based accounting system on the Ethereum Sepolia testnet, emphasizing transparency, automation, and security in financial transactions. The system integrates essential accounting operations including inventory management, customer handling, sales processing, invoice generation, and payment execution, all powered by smart contracts.Users interact with the system through a web application, which connects to Ethereum-compatible wallets to initiate transactions. Each transaction is recorded on the blockchain through a structured flow triggering invoice creation, smart contract logic execution, and transaction validation across decentralized nodes. The use of the Sepolia testnet allowed for safe, cost-free testing of the smart contract logic, payment flows, and data immutability features without the risks associated with mainnet deployment. The deployment results show accurate transaction processing, successful invoice-to-payment traceability, and enhanced auditability, all without requiring third-party intermediaries. The system’s architecture also demonstrates how decentralized applications (dApps) can automate accounting workflows in real-time, minimizing human errors and providing a transparent ledger accessible to all stakeholders. This practical validation confirms that blockchain technology is not only theoretically advantageous but also technically feasible and scalable for modern accounting environments.
Key Words: Blockchain, Ethereum, Sepolia Testnet, Smart Contracts, Accounting System, Decentralized Applications, Transparency, Financial Automation, Data Integrity
