This post was originally published on 3/22/18 but was updated on 3/26/18 for accuracy.
Looking for cryptocurrency accounting software? Here’s why I recommend QuickBooks (QBO).
QuickBooks Crypto Advantages
Support Via Foreign Currency Function – You can now add 3 of the most popular cryptocurrencies as foreign currencies in QBO. Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are all set up and ready to go if you enable foreign currencies on your account.
Enabling Crypto Receipts – QBO is helping companies accept cryptocurrency and immediately exchange it to their home currency. PaybyCoin is a great option for beginners who want to accommodate crypto paying customers but who don’t want to be subject to the volatility that often comes with it.
Bank Feeds – Crypto friendly Silvergate Bank is fully supported by QBO bank feeds.
QuickBooks Known Issues
Manual Processes – For all three cryptos, you have to manually input the exchange rates into QBO, and you have to manually revalue the balance sheet if you want to track anything other than the cost basis. Be wary unless you have used the QBO fx function in the past.
Here are some workarounds that may help.
Subledger – Keep any crypto subledger offline in Cointracker, Verady, Balanc3, Libra, or even Excel, and book an journal entry each month to get the activity in QBO. Note: Companies aren’t tracking transactions fees or air drops. All four of the technologies above capture transaction fees, and Verady and Cointracker are both capturing air drops in their latest product versions.
Balance Sheet Reconciliations – Many companies want to see the crypto assets at fair market value (FMV), and because most payment tracking is being done manually if you aren’t using one of the tools above, there is much room for human error. Add these issues to the 2 decimal place limit in QBO and Xero, and accountants should be adding balance sheet reconciliations for each crypto category (gl line item) that you are tracking.
Let us know if we can help. Acuity customers automatically get free access to QuickBooks Online, so we’re happy to get you set up or answer any questions that you may have: [email protected]. And to keep up with crypto news, trends, and events, check out our cryptocurrency page.