The problem with taking bitcoin and stacking sats is the confusing taxes. If you have a fiat account, it's just a normal debit/credit account. If its bitcoin it appreciates and depreciates, which means you have to keep track of that so that it can be accounted for at tax time. Super confusing.
I don't even know how to enter it into the bookkeeping software.
Hey nostr:npub1nedr5xspnk6wzvece5ynnt9wup0v5y508hqu96rykdqftm2pf6xswzk03w , I don't think we've formally met or interacted.
Nice to meet you! 🤝
In large part, this is going to depend on jurisdiction.
Public (ie are you registered with Secretary of State, or similar in your country? [Sorry, I don't know where you reside])
Vs.
Private (ie private express trust structure under Equity and Common Law, not statutory law)
99% of businesses operate in the Public...so I'll address that angle.
The short answer is: Just like if a business held multiple currencies (fiat) on their books, each different type is an "asset" on the balance sheet.
Thus really just at the beginning and end of one's fiscal year, does the price of BTC matter.
Thankfully in the USA the Financial Accounting Standards Board (FASB) now permits the marking of Bitcoin to market price on the balance sheet, allowing for profit and loss adjustments to reflect its volatile nature.
That being said, in the USA the IRS still classifies BTC as property (not currency) so it would technically and typically be recorded as an intangible asset, or for simplicity, in a cash-like account such as "Crypto holdings" or whatever name you want to give that account in the chart of account for your books.
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My preferred method is to simplify it further for small businesses, I recommend treating BTC like a separate cash account (e.g., “BTC Wallet”), especially if you’re actively accepting or spending it. This mirrors how you’d handle a foreign currency account.
I can dive deeper if you want. But I don't want to overwhelm you if its not a real interest or need at the moment.
Let me know if I can be of further help to ya!
Omg, yes please? I don't know how any of that stuff works. I've recently mostly grasped regular bookkeeping with fiat but I don't know how do do stuff like foreign currencies, etc. I'd love some help.
1. Thanks for the generous zap nostr:npub1nedr5xspnk6wzvece5ynnt9wup0v5y508hqu96rykdqftm2pf6xswzk03w
2. What NOSTR client do you use for DM? (I ask because some don’t support secure DMs)
3. Once I know point 2, I’ll DM you. Best to discuss privately to protect your information.
