Accounting for Cryptocurrency - From Purchases to Payroll

Cryptocurrency is no longer solely an investment tool. Companies have found new uses for it. Cryptocurrency is used to pay for services, to store reserves in tokens, and to represent digital assets in financial markets reports. Accounting is a mandatory practice. Also, it requires accounting software integration for crypto accounting.

Why do you need to track your cryptocurrency? What tools can help you avoid mistakes and save time? What kind of cryptocurrency accounting software exists? Let's find out.

What is cryptocurrency and why should it be considered in business?

Crypto has no physical form. But at the same time digital assets can be considered analogous to money. For businesses, crypto is a fully-fledged financial instrument. Companies accept payments from partners and employees in USDT, USDC, TRX, BTC, and ETH. Some also use other coins.

Even cryptocurrency must ensure data accuracy. If an accountant keeps records manually, they can easily lose transactions, make calculation errors, and fail to account for exchange rate changes. Automated accounting systems are much more effective.

Basic Cryptocurrency Transactions in Accounting

Companies must record all digital asset movements:

• purchase;
• sale;
• payment for services;
• exchange tokens.

Every such action impacts financial performance. The law requires that transactions be reflected in reports, and this must be done with the utmost care precision.

Buying and selling cryptocurrency

The basic operations that form the basis of accounting for digital assets are purchase and sale. When purchasing crypto, the company receives assets, which must be reflected in the balance sheet. The price on the date of purchase is indicated. It is important to record:

• date and time of the transaction;
• cryptocurrency exchange rate at the time of the transaction;
• network or exchange commission;
• source of funds (name of counterparty, network, ticker token).

When selling cryptocurrencies, revenue is recorded. The difference between the purchase and sale prices is reflected as profit or loss. In highly volatile markets, it is important to regularly recalculate tokens.

Paying for services with cryptocurrency

In the IT, consulting, freelancing, and international trade sectors, services are often paid for in cryptocurrency. The transaction is treated as a mutual offset. From an accounting perspective, the organization writes off the digital currency assets and gets something in return.

Let's consider an example. A company pays a contractor 5,000 USDT for accounting work. This is fixed at the exchange rate on the date of the transaction. If the rates have changed since the accrual, the difference is reflected in reporting as exchange rate income or expense.

It is important to keep:

• transaction hashes in blockchain;
• certificates of completion of work;
• counterparty data and their wallet address.

Exchange operations between cryptocurrencies

Companies may work with multiple tokens at once, which need to be exchanged from time to time. This, too, needs to be reflected in the reports.

The following are recorded:

• token types;
• exchange rates and date of transaction;
• platform and blockchain fees;
• the total cost of the received asset in fiat currency (USD, AED, etc.).

For example, exchanging 13 ETH for 0.5 BTC. Depending on the exchange rate at the time of the transaction, the company receives income or incurs expenses. Correct crypto accounting maintains transparency. Furthermore, financial results are accurately calculated, minimizing errors in the annual report. Proper accounting greatly benefits a business.

Paying Salaries in Cryptocurrency

International teams working with foreign partners practice paying compensation in cryptocurrency. Employees are typically paid:

• USDT;
• USDC;
• BTC;
• ETH.

Using high-quality services like Crypto Office simplifies bookkeeping. All accounting takes place on a single platform.

How to keep accounting for Cryptocurrency in Crypto Office: A Step-by-Step Guide

Crypto Office is a crypto bookkeeping software in Telegram. The mini-app automates crypto bookkeeping. The platform's interface, in fiat currency, allows you to manage income and expenses, and monitor transaction history. Here's how it works.

1. Open the official Crypto Office bot;

2. Launch the application;

   

   

3. Go to section “Accounting”;
4. Create a currency for control, fiat or crypto;

5. Specify turnover and company name;

   

   

6. Enter the amounts of the company's income and expenses.

After adding the bot to chats with partners, you can use special commands:

• /b – balance for all currencies (b, b);
• /b grp – balance for all groups where the bot has been added (grp, group, groups);
• /b USD –information about balance in USD;
• /b USD 200 – add the value 200 to the USD balance;
• /b USD — 100*3+10 – subtract the value 290 from the USD balance.

A full list of commands is available in the bot's "Info" section in Crypto Office.

The transaction history stores information about all financial flows. In the crypto fund accounting software transactions can be easily found using specified parameters.

Document flow and generation reports

The advantage of digital accounting is that document flow is automated. Services like Crypto Office store all operations linked to blockchain transactions. Data can be exported as reports.

System document flow includes:

• Information about the operation (date, addresses, token, amount, rate);
• automatic creation of entries for accounting accounts;
• preparation of documents for tax or audit;
• export to Excel and PDF;
• integration with ERP systems.

The service automatically generates reports by periods and types assets, transaction categories. Final reporting is accurate and clear.

Why accounting Cryptocurrency is critical for business

Companies operating in the IT, fintech, and international trade sectors are increasingly using cryptocurrency in their operations. These transactions are reflected in accounting records.

Reporting errors can have serious consequences. Here are three key risks.

1. Loss of financial transparency – without systemic accounting it's impossible to accurately assess and record profits and losses. Clear reporting is always essential.
2. Risks with tax authorities - lack of official reporting on cryptocurrency assets may raise questions from regulators. The worst possible outcome is a large fine.
3. Problems with attracting investment – ​​auditors often require detailed statements and documentation on crypto assets. They will also verify the source of funds.

High-quality solutions for accounting for cryptocurrency and routine task optimization help companies:

• avoid disorganized data;
• automate reporting;
• maintain financial transparency.

Conclusion

Proper bookkeeping, including for cryptocurrency has become an important element of the financial strategy of companies working with digital assets. Correct accounting ensures compliance. Using automated crypto accounting software like Crypto Office. It will make cryptocurrency accounting convenient and error-free.