Crypto Bookkeeping Services
Crypto bookkeeping is both unique and challenging, and is best done by professionals who are fluent in the complexities of crypto. Unlike regular fiat accounting which can be relatively straightforward, crypto bookkeeping is complex, requires special accounting systems, and if done incorrectly, can cause you unnecessary tax liabilities or can cause issues with your audit.
Why Choose ProfitLinq as Your Crypto Bookkeeper?
We are one of the few accounting firms that have deep knowledge of the crypto industry. We understand the nuances of both crypto accounting and the tax implications of different crypto transactions. We are staffed with seasoned accounting professionals who can get your crypto accounting recorded accurately and timely. We also have clients in most areas of crypto from DeFi, to hedge funds and NFTs so that means you don’t have to spend a lot of your time explaining to an accounting team the fundamentals of crypto.
We only work with crypto and blockchain companies. So we have trained our staff to understand and become fluent in the various accounting aspects of bookkeeping for cryptocurrency. We work closely with our client’s CPAs for tax planning, and we are often referred to companies to prepare them for audit. When clients work with us, they know their books are going to be closed timely, accurately, and with analysis that allows them to make better business decisions. Because we focus on financial analysis, our crypto bookkeepers maintain your books so you get the most information out of your numbers. Whether that is capturing different revenue streams, segregating expenses appropriately, or ensuring that the crypto accounting systems are set up to code the transactions accurately.
All of our bookkeepers are overseen by either a crypto CFO or Controller so that you know your books are being reviewed before they are being presented to you. This ensures that our monthly financial reviews are focused on the strategic interpretation of your numbers, and not highlighting errors. We serve companies across the crypto spectrum such as crypto funds, DEXs, NFT creators, Protocols, mining operations, and blockchain developers. We understand the unique complexities of crypto accounting, providing you with timely financial statements that are audit-ready and follow the most recent tax guidance. Our accounting team members are seasoned professionals who spend time understanding your business model.
Our Crypto Bookkeeping Promise to You
- You will work with an experienced accounting professional who has a deep understanding of the cryptocurrency space.
- Your books will be closed in a timely manner while also exhibiting accuracy.
- Your books will be properly maintained so you can get the most out of your numbers
Our Proven Process to Bookkeeping for Cryptocurrency
All of our engagements start with an accounting plan. We spend the time planning and understanding your business model so that when we create your financials, we structure them in a way to yield you the best information so that they can scale with your business. Once the plan is created, we select the right accounting system and crypto ledger system for your specific needs. Once we get your wallets hooked up, and your bank accounts feeding into our systems, we start the work of bringing your accounting up to date.
Our crypto bookkeeping service is a collaborative process with the client initially. We’ll work with you to classify unknown transactions as well as ensure that we are capturing all the nuances of your specific business model. We will also ensure if you have any Foundations or off-shore entities that your transfer pricing and Service Agreement accounting is kept in line with legal and tax requirements.
Once your books are set up and we’ve finished the first close, the team will assume the monthly crypto bookkeeping tasks to record transitions and close the books per our agreed-upon schedule
Compliance
When it comes to bookkeeping for crypto there are many areas of compliance. Our accountants can help navigate you through the process.
There are many areas of compliance for crypto bookkeeping. We ensure your books are GAAP compliant in order to satisfy any audit requirements you may have from your investors. We also understand the tax implications of crypto transactions. That’s why we spend a lot of time understanding the specifics of your revenue model and the nature of your expenses– so that you do not incur unnecessary tax liabilities for incorrect transactions. And for our clients that have multiple entities, it is imperative to have separate books for the entities and to ensure the transfer pricing agreement transactions are recorded accurately, as well as any billing to/from entities for Service Agreements are diligently recorded so as not to inadvertently infer related parties.
Day to Day Expenses
When it comes to cryptocurrency understanding your day to day expenses is crucial for bookkeeping.
Understanding the day to day expenses of your company is an important part of bookkeeping for cryptocurrency. We spend the time to understand your business model and the nature of your expenses so they can be recorded accurately. We also ensure we have the right tech stack in place to facilitate approvals and bill payments. Whether your day to day expenses are for expense reimbursement or paying developers in either fiat or crypto we will ensure that it is done in the most efficient manner with proper controls.
Clients We Serve
Our crypto bookkeeping services are available for clients who have received at least 3-5MM in funding.
We work with crypto clients that have received at least $3-5MM in venture funding, with strong, experienced leadership teams and good business models. In most cases, our clients have just received a Seed or Series A round and need help to set up a back-office infrastructure to help them scale. For the early-stage clients, we will work with them to set up the fundamentals like a General Ledger, a crypto ledger, and payroll and benefits. Our crypto bookkeepers, under the direction of our Crypto Controllers and CFOs, will set up the books with an optimal chart of accounts in order to segregate expenses and revenue for analysis and tax planning.
We also work with clients who have been in operation for a year or more. In those cases, many of them have been doing the accounting in-house, or have been managing their crypto transactions using spreadsheets. For those clients, we will take their records and, through a diligent process, turn them into auditable financials.
We have also worked with clients who are transitioning from a bookkeeper who was not fluent in crypto accounting and need their books cleaned up and brought up to date. We will work with them to set up a plan to unwind transactions, catch up the accounting, as well as put in standard operating procedures to ensure the accounting is maintained according to GAAP.
Most of our clients are funded by the top VCs in the crypto space, and they trust us to ensure their accounting is done correctly, that it yields accurate information and that their books will be ready for audit.
What you can Expect When you work with profitlinq
When you work with us, you can expect a team of accounting professionals who understand crypto, and who also know that crypto businesses are dynamic. That means as your business model evolves, your accounting will as well. With our crypto bookkeeping services, you will know that your books will be closed not just timely but also accurately and will give you the information you need to run your business efficiently. Schedule a call with one of our crypto bookkeepers today!
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