With upcoming regulatory expectations, crypto companies need more than workarounds—they need a platform built to handle digital assets. SoftLedger, a robust mid-market general ledger with native crypto functionality, offers these capabilities and partners with leaders like Node40, Lukka, and Hyperion Labs to deliver customized, compliant solutions for every customer need.

Compliance-Ready Accounting in a Regulated Landscape

For crypto businesses, remaining compliant isn’t just good practice—it’s becoming a necessity. Traditional accounting software was not designed to handle crypto assets, and relying on third-party plugins doesn’t fully address compliance demands. SoftLedger’s native crypto functionality and extensive partnership network provide the tools crypto companies need to meet today’s requirements—and tomorrow’s.

• Integrated Compliance Controls: With SoftLedger, companies can establish internal controls, track digital asset transactions, and document compliance measures—all within a single platform.
• Real-Time Audit Readiness: With SoftLedger, crypto companies can produce audit-ready reports whenever necessary, saving time and effort. Plus, our partnerships with companies like Lukka, Node40, and Hyperion Labs mean clients can extend these compliance features even further if their operations demand it.

Native Crypto Functionality: No Workarounds Required

Legacy software providers fall short with digital assets, leaving crypto companies reliant on cumbersome workarounds. By contrast, native crypto accounting software like SoftLedger enables straightforward, accurate tracking of crypto transactions and assets.

• • Comprehensive Crypto Transaction Support: SoftLedger records crypto transactions, manages multiple assets, and tracks gains and losses natively—no plugins or add-ons required.

• • Digital Asset and Wallet Management: Crypto companies frequently deal with multiple digital assets. SoftLedger supports these assets and wallet management within a single platform. Additionally, our collaboration with crypto subledgers like Lukka, Node40, and Hyperion Labs extends the range of integrated solutions we can offer customers, from payment tracking to streamlined reporting.

Mid-Market Power: A True QuickBooks Alternative

While QuickBooks and Xero are popular for small businesses, many mid-market crypto companies require greater power and adaptability. SoftLedger provides this capability, positioning itself as an accounting solution that can meet the demands of growing businesses.

• • Advanced Reporting and Analytics: SoftLedger offers detailed financial insights that help companies make data-driven decisions. Partnering with Node40, Lukka, Hyperion Labs, and others means even more analytics tools are available for SoftLedger clients to integrate into their financial workflows.

• • Customizable General Ledger for Complex Operations: As a mid-market general ledger solution, SoftLedger is equipped to handle complex operational requirements, integrating seamlessly with other systems and allowing flexibility as companies scale.

Preparing for a Crypto-Driven Future

In a world where crypto regulations are increasingly defined, companies dealing in digital assets need accounting software built for their needs. QuickBooks and Xero, while adequate for small businesses, simply can’t keep up with regulatory expectations for crypto accounting. With SoftLedger and our partnerships, you’re equipped to meet the demands of today and tomorrow.

Crypto companies seeking a scalable, compliant, and feature-rich accounting solution need look no further than SoftLedger. With native crypto functionality, deep integrations, and partnerships with industry leaders like Node40, Lukka, and Hyperion Labs, SoftLedger enables mid-market crypto companies to manage finances confidently and efficiently.

The post Why Crypto Companies Should Look Beyond QuickBooks: SoftLedger’s Native Crypto Accounting Solution for Mid-Market Businesses appeared first on SoftLedger.

Key Terminologies Explained:

Understanding Onchain, Web3, and Digital Asset Accounting

Before diving into the specifics, it’s essential to understand some key terminologies:

• Onchain Accounting: Refers to accounting practices that directly track and record transactions on a blockchain. This method ensures transparency and immutability, making it a crucial aspect of modern crypto accounting.
• Web3 Accounting: Web3 accounting focuses on managing financial transactions (both traditional fiat and crypto assets) for businesses building on a decentralized ecosystem.  Web3 represents the shift towards decentralized internet services and technologies, including blockchain and cryptocurrencies. 
• Digital Asset Accounting: Encompasses the management and reporting of digital assets, including cryptocurrencies, tokens, and other blockchain-based assets. Digital asset accounting involves tracking these assets’ acquisition, valuation, and disposition according to relevant accounting standards for both traditional fiat and crypto assets to final financial standard reports for your business like income statements, P & L (profit and loss) statement, Trial Balance report, etc.

Understanding Crypto Accounting

Crypto Accounting and Bitcoin Accounting

Cryptocurrencies, particularly Bitcoin, are classified as intangible assets under both IFRS (International Financial Reporting Standards) and U.S. GAAP (Generally Accepted Accounting Principles). This classification affects how Bitcoin is reported on your balance sheet, and it’s vital to grasp these accounting principles to ensure accuracy and compliance. Unlike traditional assets, Bitcoin is not amortized, and gains are only recognized when realized.

Recording Bitcoin on Your Balance Sheet

Bitcoin Accounting, Web3 and Digital Asset Accounting

When acquiring Bitcoin or any digital asset, the initial cost is recorded on the balance sheet. However, its subsequent measurement is critical. Bitcoin is generally measured at cost, minus any impairment losses, which means companies must regularly test for impairment and record any losses that occur. This section will guide you through recording Bitcoin, including acquisition, classification, and valuation.

Compliance with Accounting Standards

IFRS, U.S. GAAP, Web3 Accounting and OnChain Accounting

Understanding the relevant accounting standards is crucial for accurate reporting. Under IFRS, Bitcoin is treated under IAS 38 as an intangible asset, requiring impairment testing without the ability to reverse losses. U.S. GAAP also follows a similar path under ASC 350, where impairment losses are recognized but not reversed. This section covers how to comply with these standards while maintaining accurate and transparent financial records.

Practical Considerations and Risk Management

Onchain Accounting and Digital Asset Accounting

Bitcoin’s volatility presents unique challenges. Companies must implement robust risk management strategies, such as hedging or diversification, to mitigate potential losses. Additionally, secure storage and internal controls are essential to safeguard digital assets. The following section provides best practices for managing Bitcoin and other digital assets, ensuring they are adequately protected and reported.

Case Studies in Bitcoin Accounting

Crypto Accounting and Bitcoin Accounting

Look at real-world examples of companies like MicroStrategy and Tesla, who have integrated Bitcoin into their balance sheets. By studying their approaches, you can gain insights into effective strategies for crypto accounting and the importance of transparency and compliance in financial reporting. To learn more about how SoftLedger can support your digital asset accounting, visit our Digital Asset Accounting page or check out our success studies below:

• Case Study: Matrix Exchange
• Case Study: Trillion Digital Assets
• Case Study: Bitwage
• Case Study: Anti Capital

Final Thoughts:

Integrating Bitcoin into your balance sheet is more than just an investment; it’s a strategic move that requires careful planning and adherence to accounting standards. By understanding the intricacies of crypto accounting, onchain accounting, and digital asset management, you can ensure that your company remains compliant while leveraging the benefits of digital assets. SoftLedger’s advanced accounting software can support you in this complex process, offering real-time insights and automated compliance with both IFRS and U.S. GAAP standards.

The post How to Do Bitcoin Accounting on Your Balance Sheet: A Step-by-Step Guide appeared first on SoftLedger.

What is Cloud ERP?

Cloud ERP is a software-as-a-service (SaaS) model where the ERP system is hosted on the vendor’s cloud infrastructure. Unlike traditional ERP systems that demand physical servers and dedicated IT teams for maintenance, cloud-based ERP software is managed by the service provider. This management includes software updates, security, and data storage. Users access the system via a web browser, enabling real-time data processing and decision-making from any internet-connected location.

Cloud ERP systems typically operate on a subscription basis, reducing the upfront costs associated with traditional ERP implementations. They are scalable, allowing businesses to adjust their use based on current needs, and they provide a flexible, user-friendly interface that can be tailored to meet specific business requirements.

Enhancing Strategic Decision-Making

One of the key advantages of cloud-based ERP software is its ability to enhance strategic decision-making within an organization. This is achieved through several critical features:

• Real-Time Data Access: Cloud ERP systems provide real-time data access, ensuring that decision-makers have up-to-date information at their fingertips. This immediacy allows for quick, informed decisions, which is crucial in today’s fast-paced business environment. Whether it’s monitoring inventory levels, tracking financial performance, or analyzing customer trends, real-time data helps managers respond proactively to changes in the market or internal operations.
• Data Integration: By integrating all business processes into a single platform, Cloud ERP systems eliminate data silos and ensure consistency across departments. This unified view of the business helps leaders see the bigger picture and make strategic decisions based on a comprehensive understanding of the company’s operations. For example, integrating financial data with supply chain metrics can reveal insights into cost-saving opportunities or potential bottlenecks.
• Scalability and Flexibility: Cloud ERP systems are inherently scalable, which means they can grow with the business. This scalability is critical for strategic planning, as with crypto-accounting for instance, as it allows businesses to adapt quickly to changing market conditions or expansion opportunities without significant additional investments. The flexibility of cloud solutions also enables businesses to customize their ERP system to align with specific strategic goals, whether entering new markets, launching products, or streamlining operations.
• Advanced Analytics and Reporting: Many Cloud ERP solutions come with advanced analytics and reporting tools, enabling complex analyses on large datasets. These tools help businesses uncover trends and patterns, such as predicting demand or identifying risks, which are invaluable for strategic decision-making.
• Cost Efficiency: The cost efficiency of cloud-based ERP software also contributes to better strategic decision-making. With lower upfront costs and reduced IT overhead, businesses can allocate more resources to strategic initiatives rather than maintaining outdated infrastructure. Additionally, the subscription model offers predictable costs, making financial planning more straightforward.
• Improved Collaboration: Cloud ERP systems enhance collaboration across different departments and locations. With a centralized system accessible from anywhere, teams can work together more effectively, sharing information and insights that lead to better strategic decisions.

Conclusion: A Strategic Tool for Modern Businesses

In summary, Cloud ERP systems provide businesses with powerful tools for enhancing strategic decision-making. By offering real-time data access, integrating business processes, and delivering advanced analytics, Cloud ERP enables companies to respond effectively to market changes and internal challenges. The cost-efficiency and improved collaboration that come with cloud solutions further support informed, strategic decisions that drive long-term success. As businesses continue navigating an increasingly complex global market, adopting Cloud ERP systems will be a key differentiator for maintaining a competitive edge.

For more information on how SoftLedger’s cloud-based ERP software can support your business, please contact us here. We look forward to meeting you!

The post Understanding Cloud ERP and Its Impact on Strategic Business Decisions appeared first on SoftLedger.

Below, we’ll discuss blockchain technology and how businesses can leverage it to improve efficiency and security in 2023.

What Is Blockchain Technology?

Blockchain technology is a distributed ledger that’s accessible by those who have permission. It’s helpful to think of it like a Google Document. Every change made to the ledger must get approval from the many computers – known as nodes – that comprise the chain. 

The technology aims to create genuine peer-to-peer transactions without the need for intermediaries to secure the data and keep records. In other words, blockchain removes third parties like banks. 

Both transacting parties can trust that information added to the blockchain cannot be changed, meaning large companies can interact with each other directly. For example, they can write contracts without requiring third parties.

Another benefit is blockchain technology helps participants settle transactions quickly, so multi-day processes channeled through intermediaries reduce to minutes. 

All this means blockchain technology has the benefit of being accessible from across the globe while offering a level of security that traditional ledgers do not. Simply put, blockchain builds trust.

The downside to blockchain technology is that it’s not infinitely scalable, meaning specific processes, such as logging processing Mastercard’s daily transactions, still need to be ready for blockchain adoption.

Although originating from Bitcoin, blockchain applications go far beyond cryptocurrencies. Blockchain technology impacts various sectors by creating transparency while saving businesses time and money. As a result, global blockchain spending is forecast to reach around $17.9 billion in 2024.

Below we’ll explore some of these blockchain business applications.

Two Types of Blockchain: Public and Permission

Public blockchains, also known as permissionless blockchains, are open to anyone. 

For example, Bitcoin and Ethereum are built on public blockchains that anyone can see, and all participants are anonymous. Anyone can download these public blockchains, read all the historical transactions, validate new transactions, and add new transactions to the network without disclosing their identity.

However, public blockchains are largely irrelevant for businesses because business applications tend to have a finite cast of participants, meaning permissioned blockchains are more appropriate than public ones.

Unlike public blockchains, permissioned blockchains are open to a limited number of participants whose identities are all known. 

There are two types of permissioned blockchains: private and semi-private. Private blockchains operate within an organization, while semi-private blockchains operate between organizations.

While private and semi-private structures can be helpful for businesses, semi-private blockchains are more practical as most companies transact with multiple companies.

Applications of Blockchain for Business

Although originating from Bitcoin, blockchain technology is no longer just for cryptocurrencies.

Here are some of the more common business applications for blockchain.

Blockchain in International Payments

Applying blockchain technology to international payments creates a tamper-proof log of sensitive information. The blockchain structure also means every block with information links to the previous block. 

On top of this, the database is distributed, and every participant owns a copy of the transactions.

If a business needs funds quickly, the real-time international payments that blockchain affords are game-changing. Payments happen instantly, and transactions can happen directly between senders and receivers. There are zero delays, unnecessary fees, or remittances involved.

For this reason, banks are starting to use blockchain technology for international payments. For example, in April 2018, Santander launched the world’s first money transfer service, letting customers make same-day international payments. This automated process has reduced the number of intermediaries involved in transactions, making payments cheaper and more efficient.

Blockchain in Regulatory Compliance and Audit

Sources indicate that businesses spend between $200 billion to $400 billion each year on regulatory compliance. And with new rules continually being added each day, companies are looking for solutions that can save them time and money.

Again, blockchain can be applied. For example, using blockchain for compliance and auditing reduces the risk of human error due to automation, and because it’s secure, the technology helps ensure the integrity of the record. 

Blockchain can also contain various information, such as legal contracts and product inventories, making it flexible for business needs.

Moreover, once the account records are locked using blockchain technology, nobody can change them – not even the business owners. 

As a result, entries are secure, traceable, and verifiable, providing a vigorous audit trail. These traits mean the technology builds trust ahead of any due diligence process.

Blockchain Smart Contracts and Insurance

One blockchain business application with huge potential is smart contracts in insurance.

Smart contracts are just like regular contracts, except the contract rules are enforced in real-time on a blockchain. In addition, these contracts are recorded on the blockchain. In the case of insurance, claims are validated by the network. 

This validation helps eliminate incorrect claims since the blockchain would reject claims on the same accident.

This real-time enforcement eliminates the need for intermediaries and adds transparency and accountability for all parties in a way that traditional agreements cannot. It also saves businesses time and money while ensuring compliance from all parties involved.

It’s more than just insurance where smart contracts are applied. They’re becoming increasingly popular in sectors across the board, including government, health, and real estate. 

For example, European countries like Poland and Sweden are using blockchain technology to reform the land registration process. According to one of the Swedish government’s project partners, using blockchain technology for the government’s land registry process could save the government $106 million a year. This is because the technology will eliminate paperwork, reduce fraud, and speed up transactions.

Such reforms have already taken place in some European countries. For example, in 2016, Georgia created a blockchain land registry system that lets members of the public verify the ownership of property deeds.

Blockchain in Logistics and Supply Chains

With globalization, the production of goods has become an international affair, and keeping a close eye on supply chains has become increasingly challenging. 

Most supply chain systems are made up of independent databases, and records are kept separately. This separation can make verifying shipment information and processes nearly impossible for the person in charge of supply chain management.

Many industry supply chains need more communication and transparency, including shipping. According to a study by Accenture and DHL, there are over 500,000 shipping companies in the US alone, and this causes data siloing and transparency issues.

Once again, however, blockchain technology could solve many of these transparency issues. For example, blockchain’s immutable ledger means it’s well-equipped to track goods through supply chains in real-time, and consolidating data sources onto a blockchain can build greater trust within the industry.

Automating parts of the logistics process through blockchain technology could save supply chains billions of dollars a year.

Blockchain in Healthcare

Hospitals could use private blockchains to store high-level data, such as patient ages, genders, and basic medical history. 

On its own, information like this wouldn’t be enough to identify individual patients, meaning hospitals could store it on a blockchain without undue privacy concerns. Also, storing information on a central system can link data that may become siloed.

Some blockchain solutions have shown promise, improving access to information and streamlining business processes. In addition, these private blockchains can help reduce healthcare costs.

Blockchain and NFTs

Blockchain technology allows consumers to claim sole ownership of the world’s most desirable digital assets.

Instead of just exchanging like-for-like value, as you would with cryptocurrencies, blockchain has brought non-fungibility to the digital space through NFTs. NFTs are digital items sold on a blockchain, such as music, art, and videos. 

Blockchain’s immutability, transparency, and decentralization have created opportunities for the trading and exchanging of digital assets. 

Although NFTs can be minted on any blockchain that supports smart contracts, the ERC-721 standard on the Ethereum blockchain is the most common industry standard.

In 2011, the Nyan Cat GIF sold for $600,000 in Ethereum on the blockchain. However, nine years later, the digital artist “Beeple” never sold his digital work, The First 5000 Days, for $69 million.

Blockchain in Media

Many problems in media center around data privacy, royalty payments, and intellectual property piracy. According to Deloitte, media digitization has led to sharing content that infringes on copyrights, and blockchain can alleviate these issues.

Blockchain technology’s strength in media is its ability to prevent a digital asset, like an MP3 file, from existing in multiple places. It can be shared and distributed while protecting ownership, making piracy difficult through a transparent ledger system like blockchain. 

The technology can also maintain data integrity, helping advertising agencies to target customers and artists receive royalties for original works.

Many media companies have adopted blockchain technology to eliminate fraud, reduce costs, and protect IP rights. As a result, it’s estimated that the global market for blockchain in media and entertainment will be $1.54 billion by 2024.

Eluvio is one company that’s leveraging blockchain for media. Since launching in 2019, Eluvio has used blockchain technology to help content producers manage and distribute premium videos to consumers and business partners without content delivery networks.

Leveraging Blockchain in 2023

The applications above are just a handful of exciting new ways that blockchain technology can improve businesses in 2023.

While the technology is still in its infancy, forward thinking businesses are incorporating aspects of it into their workflows today to have an edge over competitors tomorrow.

So if you’re looking for more ways to improve operational efficiency, consider implementing some of the blockchain applications outlined above.

The post Blockchain Applications in Business for 2023 appeared first on SoftLedger.

• Identification – Sometimes intangible assets are hard to identify because they have no physical form.
• Value – It can sometimes be difficult to quantify the value of intangible assets because there may not be many comparisons in the market to use to determine their value. 
• Regulations – it can be challenging to compare intangible assets across industries. Most intangible assets are industry-specific. For example, it may be difficult to compare the value of a food trade name with the value of a sports franchise. 

So in this post, we’ll define what an intangible asset is, explain the key differences between tangible and intangible asset accounting, and walk you through the intangible asset accounting process.

What Is an Intangible Asset?

An intangible asset is a non-monetary asset with no physical substance, though it can still be sold, transferred, and licensed. Some examples of intangible assets include patents, franchises, intellectual property, copyrights, and software. 

In addition, while authoritative accounting guidance is still developing, cryptocurrency can also be treated as an intangible asset. (They fall under FASB ASC 350 accounting standards: Intangibles – Goodwill and Other.)

To account for intangible assets, they’re recorded as long-term assets and amortized over their useful life (i.e., the duration they contribute to a business’s valuation). This accounting process is similar to the accounting process used for other types of fixed assets and liabilities, except there is no salvage value at the end of the amortized life of an intangible asset.

Differences Between Tangible and Intangible Asset Accounting

There are a few key differences when accounting for tangible and intangible assets. These differences are as follows:

1. Useful Life and Amortization

The useful life of tangible and intangible assets is the duration these assets contribute to a business’s value. In other words, useful life refers to the period of time in which an asset is expected to generate future cash flows.

For example, a high-spec desktop might be expected to last five years, with a few repairs along the way. The useful life of this tangible asset would be five years, and it can be sold for a salvage value to be used as spare parts to meet another person’s needs, like a salvaged car. Meanwhile, a patent might last 20 years. The useful life of this patent – an intangible asset – would be 20 years.

There are two different ways to account for the useful life of tangible and intangible assets. 

Amortization is the process of gradually writing off an asset’s initial cost, and it only applies to intangible assets. It’s calculated by taking the difference between the asset’s cost and expected book value and dividing that figure by the total years of use. There is no salvage value at the end of an intangible asset’s useful life.

The equivalent financial accounting process for tangible assets is depreciation, which most often includes a salvage value at the end of the asset’s useful life.

2. Indefinite Useful Life

Some types of intangible assets, like intellectual property, may have indefinite useful lives. 

With certain intangible assets, owners may be required under certain accounting standards to review them regularly to see if they have changed in value, also known as impairment.

There are a few scenarios where intangible assets can change in value:

1. Technological trends may change, deeming an intangible asset obsolete. 
2. Markets may change, which can reduce the value of an intangible asset.
3. Contract extensions may extend the estimated useful life of some intangible assets.

That being said, it is always important to consult your jurisdiction’s accounting standards to ensure you are properly recording your intangible assets for accounting purposes.

3. Asset Combinations and Residual Value

It’s possible to combine intangible assets as a single asset for impairment testing. 

However, this treatment is likely unsuitable if the intangible assets generate independent cash flows or could be sold separately.

It’s also expected that the residual value for intangible assets will always be equal to zero unless there’s a commitment from another party to buy the assets at the end of their useful life, which is rare. 

Being acquired by another party assumes two things: 1) The residual value can be determined by looking at transactions in an existing market, and 2) That market will still exist when the useful life of the asset ends.

If the residual value is left following the useful life of an intangible asset, this value is subtracted from the carrying amount to calculate amortization.

Valuing Intangible Assets

When a company creates other intangible assets, it can expense the process of filing a patent, hiring a lawyer, and paying other related costs. The benefits of creating internally generated intangible assets are apparent.

However, on the value side, the benefits aren’t so obvious. Intangible assets do not appear on the company’s balance sheet and they have no recorded book value, so unless they’re accounted for specifically, they seem to have no market value.

But this isn’t the case. When a company is bought, the purchase price is often greater than the book value of the assets. The purchasing company records the premium paid above the book value as an intangible asset on its own balance sheet, also known as goodwill.

The intangible asset should generate future economic value for the acquiring company. This value could be incremental revenue or earnings (pricing, volume, and better delivery are all examples), cost savings (economies of scale), an increase in reputation, or an increased market share.

Some other questions to consider when dealing with intangible assets: 

• What would a willing buyer pay for the intangible asset?
• What’s the useful life of the asset?
• What portion of the operating income does this asset generate?

Intangible Asset Journal Entry Examples

Below we’ll walk through several examples of journal entries for the following scenarios:

• Intangible Assets with a Limited Life
• Intangible Assets with an Indefinite Life

Journal Entry for Intangible Assets With a Limited Life

First, the annual amortization expense is simply the cost divided by its useful life. 

Let’s say a business purchases a patent for $100,000. In that case, the intangible asset purchase journal entry would look like this:

Now, it’s time to figure out the intangible asset amortization journal entry. To do this, you need to calculate the annual amortization expense. 

This expense is simply the cost (purchase price) divided by its useful life.

If the patent is useful for 20 years, the amortization expense would be $5,000 per year.

So the journal entry for the amortization expense would look like this:

Journal Entry for Intangible Assets with an Indefinite Life

Now let’s do a journal entry for a trademark. In this case, you would create the same initial journal entry and may determine in the future that the asset was impaired. In that case, you would enter a journal entry for impairment loss. To calculate the impairment loss, you take the carrying value and subtract the recoverable amount.

So if we assume that the carrying value of the trademark is $50,000 and an impairment review estimates the recoverable amount is $30,000, the impairment loss would be $20,000.

So here’s what the journal entry for the impairment loss would look like this:

Example of Intangible Asset Accounting (With Automation)

As mentioned previously, crypto assets can also be treated as intangible assets.

Here’s how we can automate the crypto accounting process in SoftLedger.

Creating a New Transaction

First, you can create a new transaction. 

For this example, let’s select “Deposit.”

We’ll then record this transaction as follows:

We’re reducing our cash balance and increasing our Bitcoin balance:

You can add the rate manually or click the Per Coin Price download button to automatically pull the latest market rate:

Next, you have to select a wallet, add any further notes, and press “Submit.”

When you look in your transactions, you’ll see this latest deposit has been added:

This transaction adds another cost layer which you’ll see automatically reflected in SoftLedger.

Recording crypto transactions is easy with SoftLedger. 

The system does not suffer from common pitfalls like other crypto accounting solutions, such as decimal precision and coin support. If the coin is exchange-traded, you can find it inside SoftLedger, and if not, you can easily create your asset using the system’s Custom Coin feature.

Journal Entry and Reporting

When a transaction takes place, SoftLedger automatically creates a journal entry:

These journal entries show changes to your crypto balances and your gain or loss, depending on the type of transaction. An example of a withdrawal transaction and the impact it has on the income statement can be found below:

This process allows businesses to automate the entire crypto accounting process in a controlled, auditable way.

Automate the Intangible Asset Accounting Process Today

While it’s possible to account for intangible assets manually, SoftLedger automates the entire process and seamlessly integrates your assets.

This automation saves human resources by reducing your team’s time accounting for intangible assets and enables them to close the books faster. As a result, executives can access more accurate data and make better decisions for the company.

If you need an accounting software platform, consider giving SoftLedger a try. You can book a demo today to see if it’s right for your business.

Blockchain Applications in Business for 2023

ERP vs Accounting Software: Breakdown of Key Differences

Accounting For Crypto Assets – Information and Examples for 2023

The post Accounting For Intangible Assets: Complete Guide for 2023 appeared first on SoftLedger.

Specifically, most general ledger accounting software solutions do not support crypto assets, and businesses have to create duct-tape-style solutions using Excel, crypto tax tools, and other add-ons.

In this post, we’ll discuss best practices for accounting for crypto assets, answer commonly asked questions, and introduce you to software built specifically to handle the complexities of crypto.

How Does GAAP Classify Crypto Assets? 

While authoritative accounting guidance for crypto assets is still in development, non-authoritative guidance and best practices have emerged. Crypto assets generally do not meet the definition of other asset classes within GAAP. Therefore, they should be classified as intangible assets and accounted for under FASB ASC 350, Intangibles – Goodwill and Other.

This means companies using crypto assets will need to adopt other features of an intangible asset, such as the requirement to for impairment testing, in accordance with the intangible assets guidance.

How Are Crypto Assets Recorded in Accounting?

Below we’ll walk through how to record crypto assets in your accounting system and some common practices.

What Is the Best Cost Basis Method for Crypto?

The lack of authoritative guidance will continue to be a theme in this post. In accordance with this theme, a “correct” method of calculating costs basis has not been declared.  Non-authoritative guidance suggests a “reasonable and rational methodology for identifying which units of a crypto asset were sold or traded. A method considered reasonable and rational is First-in, First-out, or FIFO.” Under this method,  the earliest crypto assets are used to calculate the gain/loss on a sale or trade transaction.

How Do You Calculate Crypto Gains or Losses?

To calculate the gain or loss on a crypto transaction, you will first need to know the cost basis. Using the FIFO method, you’ll need to liquidate the number of crypto assets required to satisfy the transaction by identifying the earliest or “oldest” crypto assets held. The cost of these assets will be compared to the market rate of the crypto asset(s) in the transaction and the difference will be your realized gain or loss. 

To give you an example of calculating the gain or loss of a transaction using the FIFO method, let’s assume you purchased one bitcoin for $1,000 in January and one bitcoin for $2,000 in February. In March, you sell one Bitcoin for $3,000. As you can see, the price of a single bitcoin fluctuates significantly in U.S. dollars.

To calculate the gain/loss, you first calculate the cost basis by taking the cost layers needed to fulfill this transaction, which is 1 Bitcoin. Since we have the earlier transaction of 1 Bitcoin at a price (cost basis) of $1,000, the total cost basis to fulfill this sale of 1 Bitcoin is $1,000. Next, you would take the difference between the cost basis and the asset’s current price in the sale transaction. So, in this case, it comes out to a gain of $2,000 (the “first out” sale of $3,000 in March minus the purchase price of the “first in” from January for $1,000). 

While this simplified example makes the process seem relatively straightforward, many companies deal with thousands of transactions daily, making it very difficult to accurately calculate each transaction’s cost basis in order to record the gains/losses at scale. 

Software Built Specifically to Handle the Complexities of Crypto

Many accounting teams manage their crypto accounting in Excel sheets. However, this is highly inefficient and exposes the data to human error. While there are crypto tax add-ons that one can bolt onto traditional general ledger solutions, it’s still inefficient as you have to export the data and then re-import it to the general ledger. 

To solve this problem, we built SoftLedger, a full-featured cloud accounting platform built to support crypto natively. This means that not only are all crypto transactions seamlessly integrated with your general ledger, but it lets users record all crypto transactions with ease. In fact, it automatically calculates the cost basis of each transaction using FIFO. The system automatically calculates the gain or loss and records the corresponding journal entry for you in real-time. 

Below, we’ll discuss exactly how to record crypto transactions in SoftLedger.

How Is Crypto Activity Recorded in Accounting?

There are a few steps to the crypto accounting process:

1. Record the book value of assets from the cost basis of the transactions for each asset under the intangible assets section of the balance sheet (with the date and time of the transaction) 
2. Calculate the difference between the cost basis and sale price on any transactions using the FIFO method
3. Record the corresponding journal entry for the gain or loss

While the process is relatively straightforward, it can quickly become confusing if you have more than a few weekly transactions. 

Therefore, SoftLedger automates the entire process so that you save time and can rest assured that the data is always accurate and audit-ready. Below, we’ll walk you through an example of recording crypto transactions in SoftLedger.

Crypto Accounting Walkthrough in SoftLedger

Creating a New Transaction

To create a new transaction, select “Transactions” under the Crypto navigation and then click “New”. This will give you the option to create a singular transaction. SoftLedger also gives you the option to add transactions in bulk.

To buy crypto from fiat, you’ll want to choose the “Deposit” type. 

You can see there are three other types. These are “Withdrawal” (selling crypto for fiat), “Transfer” (moving coins between two wallets), and “Trade” (e.g., swapping BTC for ETH).

In this example, to debit this asset, we’re going to buy it for cash, so we’ll add a credit to cash. Here’s how we would enter that:

We’re reducing our cash balance and increasing our Bitcoin balance:

You can add the rate manually or click the Per Coin Price download button. This will pull through the latest market rate:

Next, you have to select a wallet. These are typically set up to mirror how crypto is held. They can mirror your trading activity on a particular exchange, represent a specific wallet address, or you might just have different areas of your crypto business that you want to segment.

You can then add further notes to the transaction and press “SUBMIT”:

When you look in your transactions, you’ll see this latest deposit has been added:

This transaction adds another cost layer which you’ll see automatically reflected in SoftLedger.

Click on the relevant wallet:

Under transactions, you’ll be able to see all your cost layers:

Recording crypto transactions is easy with SoftLedger. The system does not suffer from common pitfalls in other crypto accounting solutions, such as decimal precision and coin support. If the coin is exchange-traded, you can find it inside SoftLedger, and if not, you can easily create your own asset, using the system’s Custom Coin feature.

Journal Entry and Reporting

When a transaction takes place, SoftLedger automatically creates a journal entry:

These journal entries show the changes to your crypto balances as well as what your gain or loss was, depending on the type of transaction. An example of a withdrawal transaction and the impact it has on the income statement can be found below:

This process allows businesses to automate the entire crypto accounting process in a controlled, auditable way. 

Reporting is also flexible. Navigate to “Report Editor” under Admin in the main navigation, and you can easily make edits to  SoftLedger’s standard reports – Balance Sheet and P&L. 

Note the crypto assets mapped to intangible assets within the balance sheet:

GL accounts and account subtypes can easily be mapped or unmapped within the report editor. You can also create your own report from scratch by clicking on the “new” button. 

Once your report is complete, you can create a copy, edit it, or export it and send it to clients.

The report editor is an example of the flexibility that exists within the system. It allows you to customize and tailor the platform to your business, without the need for a third-party consultant.

Final Thoughts

While it’s possible to account for crypto transaction activity manually, SoftLedger automates the entire process and seamlessly integrates your crypto and fiat accounting.

This automation saves human resources by reducing your team’s time accounting for crypto assets and enables them to close the books faster. As a result, executives will also be able to access more accurate data and make better decisions for the company.
If you need a native crypto accounting software platform, consider giving SoftLedger a try. You can book a demo today to see if it’s right for your business.

The post Accounting For Crypto Assets – Information and Examples for 2023 appeared first on SoftLedger.

It plays a major role in calculating gains and losses and impacts your taxes.

So if you aren’t accurately tracking the cost basis for each transaction, you could find yourself in serious trouble with the IRS.

To help you out, this post discusses what cost basis is, how to use it to calculate gains and losses, and general best practices.

What Is Cost Basis in Crypto?

Cost basis is simply the purchase price when you acquire the crypto asset. If you paid USD 20,000 to acquire one bitcoin on August 1st, the cost basis would be USD 20,000.

The cost basis is important because it’s essential for calculating the gains and losses.

The formula for calculating a gain or loss is simple:

Cost Basis – Sale Price (Fair Market Value) = Gain/Loss

While determining the cost basis for a particular coin is pretty straightforward, calculating gains and losses can quickly become complicated. This is because the price of crypto is extremely volatile. So when you sell crypto, which cost basis should you use to calculate the gain or loss? 

For example, you might purchase one BTC for $20,000 on August 1st and another BTC for $15,000 on September 1st. 

There are tax advantages to calculating the loss with the first cost basis (from August 1st) as that shows a much larger capital loss than the second cost basis (from September 1st). However, you can also land your company in serious trouble if it’s obvious you’re evading crypto taxes. 

This leads us to the next question:

What Is the Best Cost Basis Method Crypto?

There are several different calculation methods, including:

• FIFO (first in first out)
• HIFO (highest in first out)
• LIFO (last in first out)
• Weighted Average 

In general, the FIFO methodology is the most widely accepted calculation method. 

Some parts of the world also accept the weighted average method. Although, FIFO is still the most common and highly recommended crypto cost basis method.

With the FIFO methodology, the sale price is compared to the earliest cost basis to calculate the gain or loss.

So using the example mentioned earlier, the gain/loss calculation using the FIFO method would use the cost basis recorded on August 1st because it was the first transaction recorded.

However, we still often have people ask if they can use any other cost basis methods. The most common question is “can I use HIFO for cost basis in crypto?”

HIFO (highest in first out) is the most advantageous cost basis method for tax purposes as it minimizes capital gains. This is because it compares the sale price of your cryptocurrency to the most expensive cost layer.

For example, let’s say you purchase Ethereum for $10,000 on Jan 1, $20,000 on Feb 1, $25,000 on March 1, and $15,000 on April 1. Then, you sell one Ethe for $20,000. 

In that case, you would record a loss of $5,000 using the HIFO method because you would use the highest traction of $25,000 from March 1st to compare the sale price of $20,000. 

However, HIFO is not a recommended crypto accounting method. Using it could land your company in trouble with the IRS as it’s clearly minimizing capital gains tax. 

For this reason, we recommend only using the FIFO method when calculating your cost basis.

How to Automate Gain/Loss Calculations

In the simple example provided above, calculating the cost basis is relatively simple. 

However, if your company has hundreds or even thousands of transactions per week (or day), it can quickly become cumbersome (if not impossible) to manually calculate the cost basis for each transaction.

Even if the team does manage to calculate the gain/loss manually, it’s very likely that errors will creep into the calculations and could throw off the end number.

If you’re using an SMB accounting software like QuickBooks or an ERP system like Sage or Netsuite, you can purchase a crypto add-on (usually an adapted tax reporting tool) to help you automate some of these calculations. However, you’ll still have to manually export and then re-import the data, which can be cumbersome.

In addition, you might have to record the crypto transactions as foreign currency in your general ledger as most crypto transactions involve up to eight or nine decimal places. For example, we’ve seen some companies use the Zimbabwe currency to record their crypto transactions.

We felt this pain and therefore decided to build a single general ledger accounting software (SoftLedger) that seamlessly integrates your crypto accounting with the rest of your accounting. 

Best of all, it automatically records the cost basis for each transaction and automates the gain/loss calculation for you.

Here’s How It Works

First, SoftLedger automatically records the cost basis for each transaction. Meaning that when transactions are entered into the system, the cost basis is recorded at the price it was traded. SoftLedger also adds a date/time stamp for each transaction.

If you sell some of your cryptocurrency, SoftLedger already has the cost basis for each transaction and can automatically calculate the gain or loss using the FIFO methodology. 

The system even automatically gives you the total gain or loss and even creates the journal entry for you:

So from the user’s perspective, when a new transaction enters the system, all you have to do is enter the most recent transaction, and SoftLedger will calculate the cost basis and record a journal entry with the corresponding gain or loss in seconds.  

This means you never have to perform a single calculation or enter a gain/loss journal entry. SoftLedger does it for you.

You’ll also always have an accurate list of the cost basis for each transaction and can produce an accurate audit trail in seconds.

All of your crypto accounting also seamlessly integrates with your general ledger software, so you’ll never have to purchase a separate crypto tool.

Choose a Crypto-Native Accounting Software

Manually tracking cryptocurrency transactions is time-consuming and risky as it’s easy to make a calculation error.

That’s a key reason why we built SoftLedger to be a crypto-native tool that automates crypto accounting processes for you.

To recap, here are just a few things SoftLedger does for you automatically:

• Record (with timestamps) the cost basis of each transaction
• Calculate the gain/loss of each transaction
• Record the journal entry

SoftLedger is also very flexible and designed to adapt to the ever-changing landscape of cryptocurrency. For example, we enable you to enter any exchange-traded coins and tokens (e.g., any coins or tokens on a platform like Coinbase), or you can enter your own custom coin.

If you’d like to learn more about SoftLedger and how it can help you automate accounting for cryptocurrency and other digital assets, schedule a demo today!

The post What Is Cost Basis for Crypto? (And How to Calculate It) appeared first on SoftLedger.

• Does QuickBooks support cryptocurrency transactions?
• If I need to purchase an add-on, what options are available?
• What kind of calculations do I need to perform to properly account for crypto?

In this guide, we’ll answer all these questions and provide a handful of options to make the process easier.

Does QuickBooks Support Crypto?

First, QuickBooks does not natively support cryptocurrency. So if your business now handles crypto, you’ll either have to perform calculations manually or purchase a crypto add-on tool.

Manually Adding Crypto Transactions into QuickBooks

If you only have a few crypto transactions monthly, you might be able to perform the necessary calculations by hand and manually add the data to the general ledger. 

The main calculations involved with crypto accounting are cost basis and the gain or loss of the transaction.

The cost basis for each transaction is the price you purchase the coin for plus any transaction fees (such as the fee to move it to your wallet).

Then, if you sell or trade the coin(s), you’ll also have to calculate the gain or loss (ideally using the FIFO method) and create a corresponding journal entry. 

While manually accounting for crypto isn’t too difficult if you only have a handful of monthly transactions, it can quickly get out of hand if you have tens, hundreds, or even thousands of transactions per month.

In addition, the IRS released a statement in 2014 that all “virtual currencies” are now taxed as property. So if you don’t have excellent records and accurate cryptocurrency accounting processes, you’ll probably find yourself in trouble with the IRS.

That’s why most companies prefer to purchase a crypto add-on tool that integrates with QuickBooks.

Purchasing a Crypto Add-on for QuickBooks

Some of the popular QuickBooks crypto add-on tools include:

• Gilded Finance
• Ledgible
• Bitcoin Sync by Blockpath

Once you’ve purchased the add-on, you’ll have to connect it to your QuickBooks account. Once connected you will need to import your crypto transactions from the add-on tool into the general ledger every month.

Constantly importing and exporting data can be cumbersome, and you’ll never have a consolidated view of your financial data as the crypto and fiat data are only combined at the end of the month. This is a problem for companies with a significant portion of revenue/expenses in crypto, as they never have an accurate picture of their financial status throughout the month.  

In addition, most crypto transactions involve at least eight decimal places. So if QuickBooks doesn’t natively offer the coin you’re recording (such as Bitcoin or Ether), you might have to record the coin as a foreign currency (such as the Zimbabwe dollar) that does support the required decimal places. This adds another level of complexity to the accounting process and slows down the financial close process.

So while using an add-on is better than manually calculating crypto transactions, QuickBooks, in general, isn’t really set up to handle crypto accounting.

For that reason, you might want to consider using native crypto accounting software. One that seamlessly integrates your fiat accounting with your crypto accounting.

Using a Crypto-Native Accounting Solution

We were frustrated that there wasn’t a single general ledger accounting software that seamlessly integrated fiat and crypto financial data in one general ledger without using an add-on. To solve this problem, we built SoftLedger!

SoftLedger is the first crypto-native accounting software that seamlessly integrates your fiat and crypto financial data, and automatically handles the nuanced challenges of crypto accounting. 

Here are a few key benefits of using a crypto-native solution like SoftLedger.

Key Benefit #1: Automated Calculations and Clear Audit Trail

The main benefit of SoftLedger is that it does all of the calculations for you (without ever importing or exporting crypto data to an add-on tool). 

Specifically, SoftLedger automatically:

• Captures every transaction and tags it with the date and time stamp 
• Calculates the cost basis (using the FIFO method)
• Calculates the gain or loss 
• Records the corresponding journal entry whenever a transaction occurs

Here’s a brief walkthrough of the SoftLedger crypto module:

So within a few seconds of a new crypto transaction entering the system, SoftLedger completes all of the above calculations and the general ledger automatically adjusts to reflect the new transaction. 

In addition, as all of the calculations are automatic, there’s always a clear audit trail. As a result, you never have to worry about manual errors creeping into your data.

Key Benefit #2: Flexible Design to Evolve With Crypto Accounting

We also know that cryptocurrencies will continue to evolve, so we built SoftLedger to be as flexible as possible.

First, we support all exchange-traded coins and tokens. In fact, even if your coin isn’t, you can enter a custom coin. 

A key problem with QuickBooks is that they only support a handful of coins. So if QuickBooks doesn’t support your coin, you’ll likely have to record it as a foreign currency to accommodate the necessary decimal places. 

In addition, SoftLedger has an open API, making it easy to build any custom integrations or add additional customizations. 

Key Benefit #3: Always Have Access to Real-Time Data

Finally, a key differentiator between SoftLedger and other solutions is that you’ll always have access to real-time data in the general ledger.

The instant a new transaction enters the system, SoftLedger performs all necessary calculations automatically and adjusts the general ledger to reflect the new transaction.

With a consolidated general ledger updated in real-time, you’ll be able to make smarter financial decisions throughout the month. Additionally, you’ll never have to guess how much you’ve spent thus far during the month. 

In addition, you’ll be able to close the books at the end of the month in minutes because the general ledger always offers an up-to-date view.

Try a Crypto-Native Solution Today

If you’re performing more than a handful of crypto transactions monthly, consider using a crypto-native solution like SoftLedger. While it’s not impossible to account for cryptocurrencies within QuickBooks, you’ll probably have to purchase a crypto add-on. 

Even with an add-on, QuickBooks is designed for small businesses and therefore isn’t supposed to be flexible. 

So you’ll probably run into nuanced challenges, such as unsupported coins, and you won’t be able to build custom integrations.

To learn more about SoftLedger and see how it can simplify your crypto accounting processes, schedule a demo today.

The post QuickBooks Crypto Accounting: What You Need to Know appeared first on SoftLedger.

With such high figures, it is unlikely the IRS will relent on tracking down tax evasion in crypto. As a result, they are continually coming up with new tools to help them track down offenders with ease.

On the other hand, crypto taxation is likely confusing to many retail investors who are new to the sector. Lucky for them, the IRS has released detailed guidelines on how to file taxes related to crypto transactions.

How to Calculate Crypto Gains

For this article, we will use the IRS guidelines on Capital Gains On Crypto. In the US, crypto is classified as a taxable asset. Consequently, any time someone disposes of their crypto, they either gain or lose money during the transaction.

For purposes of taxation, there are four ways to dispose of crypto:

• Sell it for fiat
• Swap it for another cryptocurrency
• Spend it on goods and services
• Gift it

For any gains you make when disposing of your crypto, you have to pay capital gains tax to the IRS. A capital gain is defined as the difference in the value of an asset from when you acquire it to when you dispose of it.

Due to the way crypto is taxed, each crypto transaction is taxed as a separate event. For day traders, trying to compile a report for those transactions would be a nightmare. Therefore, the best way to get around this problem is to use crypto tax software.

What Is Crypto Tax Software?

Crypto tax software is an automated program that calculates the tax you owe the IRS and automatically generates a report for you.

When the IRS is calculating how much tax you owe, they will often rely on software, which crawls through data they obtain from various sources. They will then make a comparison between the amount you paid and how much they are demanding. So, if there is a discrepancy, they can take enforcement action, which could include asset seizures, and in some cases, jail time.

Crypto tax software works like any other tax filing software. However, it has been configured to work with the intricate nuances of the crypto trading world. The most robust crypto taxation software can assist day traders file taxes efficiently, even when they trade on several exchanges a day with thousands of transactions per day.

Benefits of Using Crypto Tax Software

When accepting crypto at a business establishment, you must get the tax reporting requirement right.

The only way to achieve that practically and efficiently is to use reliable tax filing software. One of the best options out there is SoftLedger. SoftLedger is the first full-featured accounting system that supports crypto. Our crypto-specific features are focused on the complexities inherent in accounting for crypto assets. Not only does it help with filing taxes related to crypto transactions, but it can also handle transactions related to all other business transactions. Here are some of the unique benefits of using SoftLedger.

1. Cost Saving

One of the main benefits of using crypto tax software is how cost-effective it is. Hiring someone to do the work manually would take too much time and resources.

2. Speed

Most crypto taxation software can be set up in 30 minutes or less. It will then run automatically in the background, allowing you to focus on making profitable trades.

3. User Friendly

Crypto taxation software comes with step-by-step guides that are designed to help you avoid mistakes that could cost you huge fines. Additionally, they often feature an educational section where you can understand the basics of how to file your crypto taxes effectively.

4. Great for Businesses with Multiple Locations

For franchises (all of which accept crypto), SoftLedger is one of the best resources out there. For example, it can run separate or combined reports for multiple locations on a single platform.

5. Great for a Business with an In-House Development Team

The SoftLedger platform comes with a fully integrated API, which can be customized based on the unique needs of a business. It is especially useful for a company with an in-house development team, which needs a highly customizable solution for all its operations.

6. Great for Inventory-Intensive Businesses

For businesses that deal with a lot of inventory, SoftLedger is the perfect solution. It allows a company to track its inventory in real-time, therefore ensuring efficient management of stock at all locations. It is also a useful solution for light manufacturing companies that need to track their inventory in different stages of production.

7. Great for Crypto-Intensive Businesses

Due to the unique nature of crypto transactions, it is important to have dedicated software that can work with them. SoftLedger allows users to manage and track all their crypto-related transactions. Users have the option to connect their crypto wallet to the software, just like a bank feed. The business can then receive live reports, which can help it make decisions regarding crypto transactions.

Unique Benefits of Using Cloud-Based API Software

SoftLedger is a cloud-based API software, which comes with some unique benefits for users. An API – or ‘Application Programming Interface’ – may sound complicated but it is based on a simple premise: at its core, an API is a building block that links software and web applications together. It facilitates communication between these items with ease and creates new opportunities for data sharing within an organization. Some of the benefits of using cloud-based API software are:

Manage Your Crypto Taxes With SoftLedger

For a business or crypto asset manager looking to administer their crypto tax and general accounting needs from one single platform, SoftLedger is the perfect solution.

As accounting software has become an indispensable part of running a business, one of the most critical aspects of it is that it must be user-friendly. Even without in-depth accounting knowledge, most users find SoftLedger easy to use. Above all, it offers a full suite of integrated financial management and accounting tools, designed with modern business environments in mind.

To see for yourself how SoftLedger can improve your crypto tax operations, book a demo today.

The post Crypto Tax Software: How To Tax For Crypto Gains and Losses appeared first on SoftLedger.

Due to lockdowns and restricted mobility caused by the COVID-19 pandemic, many of us spent countless hours on media and the internet. All of which made us more aware of new means of investing. Entering the market can be intimidating and difficult – particularly for rookie traders and retail investors, unfamiliar with crypto. The extreme complexity of cryptocurrency trading deters many prospective investors and traders. But what’s the solution? The solution to investors’ difficulties with crypto-assets is crypto asset management platforms.

What is Crypto Asset Management?

Crypto asset management is a platform that helps crypto investors and their accountants manage their digital assets, whether they’re stored on an exchange or a distributed ledger (i.e. blockchain-based network). These can consist of crypto funds, cryptocurrency providers, blockchain firms, and companies that have conducted initial coin offerings.

These platforms significantly simplify the complicated world of purchasing, trading, accounting, and selling crypto assets. Not only beneficial for professional traders, but they can also ease access to crypto investments for the less-informed retail investor.

The cryptocurrency asset management industry is essentially split between custodian and wallet solutions.

The wallet management system is most popular since it secures digital assets and streamlines corporate processes. Asset managers and small financial institutions often use wallet management, and small and large financial organizations are increasingly using cryptocurrencies because wallet management has the most significant market share.

Management Platform Options

A crypto management platform can consist of these two components:

On-premise

The on-premises sector’s expectation is to dominate the crypto asset management market. This is due to its strong demand by big businesses, cheap cost, and internal connectivity improvements.

Cloud-based

CAM (cloud asset management) systems manage your cloud estate, including maintenance, compliance, and asset monitoring.

Forecast For The Market

“The global crypto asset management market size is projected to grow from USD 0.4 billion in 2021 to USD 1.2 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 21.5%” – ReportLinker

The increasing payments in emerging nations, the rise in venture capital investments, the necessity to preserve bitcoin assets, and the expansion of blockchain technology are projected to boost the industry.

Pros of Using a Crypto Asset Management System

• The software is simple to use and incredibly effective.
• Rather than needing to handle several accounts and wallets, crypto management systems are making the process easier.

Essential Tools for Crypto Asset Management

Coinbase is one of the most popular cryptocurrency markets in the United States, with services available in over 100 countries. Coinbase is where you may purchase and sell cryptocurrencies and manage your portfolio.

Hardware wallets operate offline, making them immune to unauthorized network access. When your assets begin to appreciate, a hardware wallet may be the best location to keep them.

SoftLedger includes a cryptocurrency asset management tool that presents detailed transactional accounting, powerful financial reporting, and the ability to manage multiple wallets and entities on one platform.

Users have a real-time view of their finances, and can automatically track their realized and unrealized crypto gains and losses, including cost basis details and live market rates. They can also automatically track their crypto transactions at scale, transfer between multiple wallets and exchanges, with cost basis automatically tracked, and even add hash IDs for linking to the relevant block explorer for on-chain transactions.

Curious to see what it can do? Watch the below intro video or book a demo with us for a full look at the platform’s capabilities.

The post Is Crypto Asset Management The Next Big Trend? appeared first on SoftLedger.