We're Partnering With Cryptoworth to Simplify Accounting in Crypto

October 6, 2022

Hey Request enthusiasts 👋

We began with a mission: to make crypto easy for enterprises. That means identifying various pain points for enterprises using crypto, and then developing solutions to turn those frowns upside down. 

One of those challenges enterprises face is accounting in crypto. 

That’s why we’ve previously announced a partnership with crypto accounting and tax solutions like Cryptio.

Today, we’re delighted to announce that we’re also partnering with Cryptoworth.

Simplify crypto payments for your business today

Why Crypto Teams Need Accounting

Accounting in crypto is important for two reasons. Firstly, proper accounting is like a health screening: it helps teams understand their own financial well-being, and identify potential areas of concern. It also helps teams build confidence among external parties like investors, or business partners.

Secondly, accounting is also a matter of compliance. Taxes are the subscription fees that everyone must pay to live and work in a jurisdiction. Proper accounting is the only way to accurately assess how much taxes are owed to the internal revenue authorities. 

For expanding businesses, audits are commonplace to determine the accuracy of a company’s financial reporting. Companies, especially larger international organizations, will be expected to meet GAAP and IFRS standards that companies and their accountants must follow when they compile their financial statements.

Accounting In Crypto Is Hard

But accounting in crypto today is a massive challenge for three main reasons. 

For one, crypto data is distributed across different wallets, exchanges, and DeFi platforms. Pulling together data from these various sources is challenging. Finding an accurate cost basis on assets can be tedious as fair-market values of volatile crypto assets change every minute. 

Additionally, generating reports on your transactions and merging data with your general ledger can be a challenge due to the lack of support for crypto data streams from legacy financial software

Further, given how complex activities like DeFi lending, staking, arbitrage, or swaps can be, different accounting rules must be applied to the many circumstances only found in web3. 

These make it very difficult for accountants and finance teams to track the full picture of their companies’ cryptocurrency transactions and financials as a result of their crypto-related business activities. 

How do Web3 teams do accounting today?

Most people in web3 finance teams do accounting manually on conventional spreadsheet software like Google Sheets or Excel. At best, transactions are summarized by tracking overall dispositions and income/receivables via statements provided by their vendors. 

It is extremely tricky for teams to record every single transaction line item in a spreadsheet - especially if they transact across multiple chains, exchanges, and third-party platforms. 

Harder still, when it comes to hedge funds or high-frequency trading firms, as transactions tend to be consolidated, making it impossible to perform a transaction level audit.

Crypto accounting and tax solutions like Cryptoworth solves this.

Simplifying Crypto Accounting & Financial Reporting

Cryptoworth simplifies crypto accounting with convenient solutions aimed at all three parts of the problem.

Automatic data syncing from various data sources like wallets, exchanges, and DeFi platforms removes the hassle of manually consolidating the data. The consolidated data is then polished, improving the readability via automated line item tagging, labeling and classifying.

Cryptoworth's accounting engine then automatically generates financial reports via calculation algorithms. These include FIFO, WAC (ACB), and soon LIFO and HIFO. 

Reporting modules along with API driven connections to traditional ERPs such as Netsuite and Quickbooks automatically merges the crypto subledger in Cryptoworth with the main ledger. 

Now, web3 companies using Request Finance can automatically plug in data on their accounts receivable/accounts payable (AR/AP) transactions into Cryptoworth. This further streamlines the entire back-office accounting process.

The integration synchronizes all the invoices with a click of a button and attaches the invoices to transactions as they happen. 

This fully automated process ensures that your books are reconciled with the minimum amount of work required from your accounting team.  

Watch the magic in action:

To start simplifying your crypto financial reporting today, visit: https://cryptoworth.io/ 

Ivan
Content Lead
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