Ask HN: Is there an accounting platform for a crypto first company?

Re:Ask HN: Is there an accounting platform for a crypto firs... by wjnc on Sunday April 18, 2021 @07:09AM (#26851477)

ACCA on currency [1]: "An entity’s functional currency is the currency of the primary economic environment in which the entity operates, normally the one in which it primarily generates and expends cash." So it seems it could be allowable for a US-firm to follow GAAP while accounting in crypto. Wasn't expecting that.

Perhaps I'm naive but since primary currency is no more than a convention in your bookkeeping software: find a firm willing to put BTC (or whichever) where usually there is USD?

One of the things to be mindful of is that tax accounting is not GAAP financial accounting. Say you close your book year in a period with high volatility in your cryptos price. This might materially impact your fiat numbers (if you have enough fiat costs). Your tax auditor might want to look twice at the reported fiat numbers.

[1] https://www.accaglobal.com/us/en/technical-activities/techni...

[ Parent | on HN ]

Re:Ask HN: Is there an accounting platform for a crypto firs... by arjun_s on Sunday April 18, 2021 @07:24AM (#26851560)

Yes, functional currency would be crypto for a crypto first company.

If we take example of a SAP or XERO like software, a conventional company uses integrations/receipts from banks, sales platforms, physical receipts etc. In a crypto first company e.g. a crypto game dev company - the sales are in crypto, the funding via tokens is via crypto, the platform fees (defi apps) is in crypto - so a SAP/XERO like software is not build for purpose - hence my question that is a crypto first accounting/expense/reporting software needed.

Volatility will still remain if you use current mechanisms depending on how you book these assets on your balance sheet. Which more depends on how the taxman classifies them going forward.

[ Parent | on HN ]