Subnostr

So in the bookkeepimg software, the account would be in USD and not BTC? Otherwise I don't see a way to record the USD value going in and at the end of the year.

makeasnek 10mo ago

A lot of business owners I know who primarily use USD have this workflow:

1. Do USD books like normal, don't try to integrate BTC into them at all.

2. Establish a wallet or exchange account. As you spend or receive BTC, write it down somewhere so you can go back and figure out what a tx was for, if needed. This could be the memo field in the tx, a separate text document, whatever. Just like when you use USD.

3. At the end of the year when doing capital gains calculations, mark all "incoming" payments to that account as as Income. So that's all accounted for, easy. Likewise, mark all outgoing payments as "expenses" if they are valid business expenses. Most crypto tax calculator sites have ways to do this in bulk.

4. Make sure you record any transfers from one of your own wallets to yourself separately so they don't get tagged as capital gains events in step 3.

5. Whatever account software you use, open a support ticket with them and ask them to add BTC support. They need to hear from people that want this feature, or it'll never get added.

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Discussion

makeasnek 10mo ago

* Final note: If your account tool is pulling from your bank account, for example, and your exchange account is depositing sold BTC into there, you need to write a rule so that you aren't "double-counting" that as income (once when you receive it as BTC and once when you move it in the form of USD to your bank account). You can just tag it as a special type of income which can be separated out come tax time.

makeasnek 10mo ago

You could also just make an entirely separate bank account which your accounting software never sees. TLDR keeping books separate will be much simpler than trying to integrate them

TerrestrialOrigin 10mo ago

Thanks so much for your help! I really appreciate it.

TerrestrialOrigin 10mo ago

Does "tx" mean transaction? I use GNUCash for bookkeeping (although I'm planning to migrate to Firefly III because they have a REST API I can integrate my own apps with), it's a free application, so there's no customer service. Reddit says to use "Securities" fir bitcoin. I guess they are like stocks? Idk. It's so confusing!