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But Going Full Crypto was not just a decision to operate and store value in bitcoin (or any other cryptocurrency). It is simultaneously a decision to start accepting payment, and paying our contractors and employees in bitcoin. With the corporate year-end of Atlantic Blockchain Company coming at the end of September, I have been prepping our books and transactions for our accountant so he can reconcile our taxes.
In this letter, I’m going to disclose some of our strategies, and organizational practices that we’ve picked up in the last year that makes Going Full Crypto a worthwhile endeavor for us as a business.
Paying & Getting Paid
Whenever we do work for our clients, we immediately offer to accept payment in cryptocurrency. Bitcoin is ideal, but virtually anything within reason will do. Most times our clients will either pay us in BTC or USDT, so we don’t have to worry about converting some obscure cryptocurrency into bitcoin later.
Since we pay some of our contractors in bitcoin, and regularly make overseas payments, it is convenient for us to have an ample store of bitcoin and stablecoin ready to go.
If we intend on spending the bitcoin we’re receiving, we get it sent to our Business’ ShakePay Account because they cover outgoing transaction fees. Free to receive, and free to send. Zero transaction fees.
If we intend on adding the bitcoin we’re receiving to our cash reserves, we have it sent to the company hardware wallet for long-term safekeeping.
Accepting payment, and storing cash reserves in bitcoin has its ups and downs. But we’re prepared to the take on this risk as a business. For us, it is more important to be adopting the technology as fully as we are. It gets our hands on new and more advanced features, and its part of what makes us “experts” in the field. We believe that in the long term, we will benefit far greater than any pain suffered from short-term volatility.
Taking Dividends
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Bitcoin and Cryptocurrency Accounting
We follow a lot of the same processes for our business as we do for our personal finances. That is,
We record each and every transaction
Timestamp
Amount
Asset(s) involved in the transaction
Type (Trade, Transfer, Expense, Income)
We record on which platform the transaction took place
Ideally, by following this process we can pass this information to our accountant who will then build a picture of our portfolio. If we did this correctly, then the picture he ends up with is a reflection of reality.
Things are not always that simple though, I have to personally go in and do a lot of “tagging” on the transactions at the end of the year. When we pay a contractor with bitcoin, we still need an invoice. When I give the transactions to my accountant, he needs to know which transactions pertain to which invoices.
Accounting for bitcoin is still a pretty tedious task at this stage in bitcoin’s adoption. I’m sure this will change as the adoption for bitcoin grows. After going through several accountants, I found someone that was willing to go the extra mile to truly understand how to record and report transactions in bitcoin.
Ben Kinden Accounting
I wanted to give a shout-out to my accountant Ben Kinden. He does our books for both our business and personal finances. As I said before, he didn’t have an in depth understanding of cryptocurrency and bitcoin before working with us, but he does now. Not every accountant is open to dealing with your wacky cryptocurrency transactions. Ben is willing, able, and competent. Give him a call if you’re looking to sort out your portfolio and finances.
A Good Choice for Digital Entrepeneurs
I don’t think every business should Go Full Crypto. I am reminded everyday about how early we are to the entire phenomenon of banking within cryptocurrency. That being said, it is a fantastic time to be figuring it out.
It doesn’t matter if you’re banking in Traditional Finance, or banking within cryptocurrency. There are challenges on either side. I recommend it for small to medium sized businesses with a heavy international and digital presence. Especially if accepting payments internationally is a necessity.
As always, if you have any questions pertaining to the processes and nuance of going full crypto, don’t hesitate to reach out.
Regards,
Keegan