Digital Currency Accounting Services Provided to a Leading International Bitcoin Firm

The Client

The client's company deals in Bitcoin trading and is based in Chicago City, Illinois, with operations both domestically and abroad. Three subsidiary firms have also been incorporated.

Client’s Requirement

To organize unmanaged accounting and maintenance tasks, the customer needed an economical accounting management solution.

Business Challenge

Completeness & Accuracy of Accounting & Financials

Vendor bills weren't processed on time. Despite having a lot of business, the firm was having trouble negotiating with vendors for fair prices. Due to the company's lack of effective month-end closing procedures, the monthly reports did not accurately reflect their business situation. Additionally, the processing of the data was not of very high quality.

Limited Accounting Software

Since Bitcoin accounting is still a relatively new concept, the company's financial records could not be processed using the accounting software that was needed. To handle bookkeeping, daily cash inflow/outflow, and the value of Bitcoin, there are now many different pieces of software made specifically for Bitcoin and cryptocurrency businesses. The client was unable to retrieve the necessary reports and update all the financial functions in accordance with their needs because they were still utilizing basic software.

Other obstacles included -

• There was no existing process documentation for numerous essential operations, which required a strict quality check to assure correctness when processing high volumes of utility bills manually.
• Because of the month-end closing's tight deadlines, the team had to swiftly learn essential tasks.

Software Used

QBO Accounting Software

Our Solution

QBO Accounting Software : We made a recommendation to change the client’s accounting software. Since the QBO program is simple to use and available from anywhere, we advised utilizing it. Additionally, we made sure that all financial information could be fully tracked.

Expert Staffing : To address the client's daily accounting needs, we allocated two accountants to oversee the numerous activities on a daily basis. To quickly complete the tasks, we often called the customer. Both accountants (professionals) carried out a variety of duties. The team had to learn quickly because the accounting for this company was new, which they did and the client appreciated it. Their proactive approach to requesting information from the client's accounting personnel and then following up on it was crucial to the process.

Developing a New Process : The month-end closing was one of the client's main areas of frustration. The main causes of this were the excessive amount of the financial controller's accounting activities, disorganized data storage, a lack of a well-defined month-end procedure, and unclear deadlines. A large portion of the process knowledge was secret information that the financial controller alone had access to. The finance controller, senior management, and the financial analyst all participated in lengthy conversations to map out the process and related dates, record tacit knowledge of the processes, and map out the reporting needs. The closure procedure was further divided into divisions for AP, AR, banking, and general ledger.

The Result

The client is ecstatic with the team and their work. The following were some important performance lessons learned -

• Timely monthly financials are now concluded by the 10th of each month.
• A well-established and documented accounting procedure with fully centralized processing was established, and accurate information was made available at all necessary levels.
• Daily communication with the client was made through calls and Skype to reduce the time to complete the tasks. The client received praise from bankers and investors for their timely submission of reports.

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