Three Methods for Simple Bitcoin Business Accounting
This is a guest post from Digital Currency Council Member Marty Zigman. Recently, I gave a webcast presentation to AICPA members to help accounting professionals understand Bitcoin and how to treat it on the general ledger. If you are an AICPA member, the webcast is available for your viewing. In this article, the key points from that presentation are....
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The business intelligence firm has reported it used non-GAAP methods of calculating figures for its BTC buys excluding the “impact of share-based compensation expense and impairment losses and gains on sale from intangible assets." Business intelligence firm MicroStrategy reportedly acted contrary to the Securities and Exchange Commission’s accounting practices for its crypto purchases.According to a Bloomberg report, a comment letter from the SEC released Thursday showed the regulatory body objected to MicroStrategy reporting information related to its Bitcoin (BTC) purchases based on....
This is the first part of a multi-part series that will explain how to integrate Bitcoin as a payment method using your existing small business accounting software package.Why would you need to do this? In short, because accounting principles generally accepted in the United States and state and federal regulatory authorities require reporting in US Dollars. This procedure will allow you to properly account for the full extent of your Bitcoin sales and integrate those sales into your business records as if they had originally been made in your home currency. Since the vast majority of....
Matthew Spoke is a senior consultant at Deloitte Canada and is actively involved in the company's internal initiative to explore uses of blockchain technology in accounting. Here, in an article co-authored with his colleague Shannon Steele, he explores why a blockchain-based audit system is the future of accounting. Following the Enron Scandal in October of 2001, something unprecedented happened. For the first time in its modern history, although for a short period, the global audit industry lost its most precious asset: public trust. Although the industry has since recovered, and the....
Nick Chowdrey is a business and technology writer and proud digital native. Currently based in Brighton, UK, he is a technical writer at Crunch Accounting and co-founder of Brighton-based bitcoin community, Bitcoin Brighton. Here, he explores whether or not bitcoin could render accountants obsolete. Towards the end of last year, CoinDesk published a piece suggesting four career fields bitcoin could replace. One of these careers was accounting. I wanted to investigate further into whether this could actually happen. It's no secret that online accounting firms are already disrupting the....
Blockchain representatives from each of the 'Big Four' accounting firms are set to meet this morning with the American Institute of Certified Public Accountants to discuss establishing a distributed ledger consortium. Held at Microsoft's headquarters in New York City, the event marks the first meeting between blockchain specialists from Deloitte, Ernst & Young, KPMG and PwC. Collectively, the accounting firms in attendance last year generated $123.7bn revenue. The gathering is being hosted by ethereum-focused startup Consensys. According to Consensys head of blockchain accounting,....