Businesses are expecting to use programs like QuickBooks Online (QBO) to organize their digital assets. This is like a carpenter using ancient tools to build a modern-day house.
It’s going to require an unreasonable amount of time and energy.
Accounting for cryptocurrencies will require a different software than the one accountants are currently using. You’ll need to use a tool capable of handling the complexities of the new economy.
Recently, we've been reflecting on Gilded’s journey as a company — it’s been more than two years since the release of our original crypto accounting software on the Ethereum blockchain. Specifically, we’re thinking about how Gilded is different from other crypto bookkeeping applications.
Founded by CPAs, Gilded was designed to be simple and intuitive for accounting professionals.
Providing a foundation for new products (like our NFT royalty and revenue ops product NFTOPS), our accounting philosophy is a guiding force behind Gilded’s movement into the future.
This means building a stronger relationship between the worlds of cryptocurrency and accounting. It also means helping to simplify the lives of our growing user base.
Perhaps you’re not ready to commit to a software. You might be asking why it would be different from something like QBO. This article will help to shed light on the important function of a crypto accounting software when it comes to managing digital assets.
We’ve made a list of the six things to look for in a crypto accounting software:
- The ability to optimize your on-chain contacts
- Crypto wallet organization
- An activity view and financial dashboard
- Seamless integrations with traditional accounting software like QuickBooks Online
- Crypto tax calculations and gain/loss Reporting
- Advanced crypto operations and DAO tooling
Who uses crypto accounting software?
In the near future, most businesses will require a crypto accounting software.
We believe that cryptocurrency is going to become commonplace. This is the next phase in the evolution of business.
Currently, the businesses transacting in digital assets are the most in need of professional software.
Perhaps your online business accepts crypto for payments.
You might conduct business internationally and find it easiest to use stablecoins.
Or you might simply be an investor with a growing portfolio.
Each of these businesses would benefit tremendously from a crypto accounting software.
What is crypto accounting software?
A crypto accounting software is a computer application specifically designed to account for cryptocurrencies and other digital assets.
Why is it different from a traditional accounting software?The emerging financial ecosystem consists of a wide variety of cryptocurrencies. It’s important for an accountant to interact with these different assets on the same platform.
This article will explore the features that you’ll want to look for when choosing a crypto accounting software. You’ll leave with a clear understanding of the benefits this kind of application provides.
6 Ways to choose your crypto accounting software
1. The ability to optimize your on-chain contacts
The exchange of digital assets doesn’t have to be completely anonymous. These days, people are far more interested in the blockchain’s power of efficiency and accountability than the ability to go unnoticed.
As accountants, we like to know the names of the companies we’re transacting with.
Our crypto accounting software works similarly — however, it doesn’t require each wallet you interact with to have a registered ENS domain. You’ll be able to map a wallet address to a name (and whatever information you’d like to include) in a few clicks. You’ll then have your customers’ billing information at your fingertips for quick and easy invoicing.
It’s like a blockchain Rolodex.
Having a directory of the people you’re doing business with on-chain allows for a faster review of transactions. Instead of wallet addresses, you’ll see your contacts’ names in the activity view. The next generation of decentralized operations need not be a fox hunt through Etherscan and spreadsheets.
2. Crypto wallet organization
At Gilded, our crypto accounting software lets you organize your individual wallets on a single page.
You’re able to see the flow of transactions associated with each of your wallets. This includes a list of historical transactions, spot prices, and detailed real time summary of the crypto assets held in each wallet — basically, the current price of the different coins, as well as the total value of each asset.
The number of wallets you can import depends on the plan you have with Gilded.
Right now, we have two main plans — Pro (10 wallets) and Enterprise.
If you’re a larger business, it’s possible you’ll need more features. Fortunately, we’ve got you covered.
Our Enterprise plan uses our most advanced mapping technology, Compass — and we’re happy to customize our crypto accounting software depending on the number of wallets your company needs.
For companies with lots of wallets and transactions, manually categorizing and classifying each transaction into the appropriate general ledger account can add hours to your accounting process.
With Compass, you’ll be able to set mapping rules for individual contacts, as well as the individual wallets themselves. Request a demo to see Compass in action.
What’s the point of having different wallets for the same type of digital assets (e.g. ETH)?
You might have a designated wallet for the different functions of your business. For example, you have a digital wallet for operational expenses, while another is specifically for payroll.
We’ve created crypto accounting software to emulate the same process used by CPAs and accounting professionals for decades to make it as simple as possible.
Crypto bookkeeping shouldn’t be complicated. Gilded functions like an ERP for web3 and the tools and processes will feel pretty similar.
3. Gilded's activity view and financial dashboard
Gilded's activity view > mountains of spreadsheets.
For each of your wallets connected to Gilded, you’ll be able to see your incoming and outgoing transactions in a single place. Our crypto accounting software calculates the spot price for every transaction in your base currency — another reason you won’t be pulling your hair out.
It doesn’t matter where your transactions come from — whether they’re from a centralized exchange, a non-custodial wallet (like MetaMask), or a client’s unknown wallet.
Our crypto accounting software will standardize every transaction, so you don’t have to.
Spreadsheets have their use, but they're time consuming and prone to human error. You’re better off using a crypto accounting software (if you’re trying to preserve your sanity). Gilded’s accounting-grade data is immediately ready for your ledger. You’ll be able to export your crypto transactions into a CSV file and import them into your preferred accounting software or export them to QuickBooks Online.
Gilded's financial dashboard is a better way to look at your on-chain financial health
Gilded's brand new financial dashboard gives you a bird's eye view of your company's finances.
Gilded's dashboard enables you to visually keep score of your company’s crypto transactions across every wallet or exchange. It’s a radical improvement that speeds up analysis and provides insights to grow your business.
Why use Gilded's crypto dashboard?
The beauty of transacting on-chain is the transparency and rich data it provides. But interpreting this data can be a challenge for accountants and operators — whether they're crypto native or veterans of the world of traditional finance.
Block explorers like Etherscan are a fantastic resource, but the raw data they provide is not designed for accounting purposes. Accounting pros — if you've ever had a client send you an Etherscan link declaring "this is an expense", this is for you.
Want to pull an accurate report of your Q1 expenses from Etherscan? No shot. What about tracking gas fees? Virtually impossible.
Want to see a real-time visualizations of this information?
That's the magic of Gilded.
4. Gilded's seamless integrations with traditional accounting software like QuickBooks Online
Our crypto accounting software is cloud-based — your transactions can be synced directly to QBO. It won’t be difficult to create a unique map of your transactions to your QuickBooks account, and you’ll be able to effortlessly integrate crypto accounting into your standard QBO process.
We know P&L statements and other standard reports are essential to get a sense of the financial well-being of your company. If you’re regularly processing crypto transactions (without the QBO integration), you’ll only have a limited understanding of your company’s financial situation.
Search for ‘QuickBooks’ and ‘crypto’ on Google — at the top of the page, you’ll see Gilded’s crypto accounting software on the QuickBooks app store.
5. Crypto Tax Calculations & Gain/Loss Reporting
Calculating your crypto tax burden manually with spreadsheets can be a real headache, especially if you have thousands of transactions. With Gilded, you can calculate your gains and losses directly in the app and export a FIFO report in just a few clicks.
6. Advanced crypto operations and DAO tooling
Though proper accounting is the lifeblood of any organization, decentralized operations (deOps) is far more than just financial and tax reporting. Gilded has advanced functionality for AR/AP, payments, NFT platform revenue ops, and more.
Crypto Invoicing & Bill Pay
Gilded allows you to accept and send payment in 30+ tokens including ETH, BTC, and stablecoins. Automate recurring invoices for crypto subscription payments. Add accounting-grade data to outgoing crypto transactions with our Bill Pay feature.
Crypto Mass Pay
Gilded makes it painless to pay your people in crypto with your own web3 wallet. Send up to 500 payments in BTC, ETH, or stablecoins in a single transaction — saving time and gas fees. Say hello to non-custodial crypto payroll.
NFTOPS for NFT Platforms
Gilded's NFTOPS is a plug-and-play revenue ops solution for NFT platforms. Get a 360-degree view of your NFT platform performance and track revenue, royalties, and splits on primary and secondary markets. Generate compliance-ready reports for stakeholders and users.
A final note
Our CEO Gil Hildebrand and CXO Raina Casbon-Kelts attended QuickBooks Connect in late-2019. At the San Diego conference, the future importance of Gilded’s position in the market became clear. Nearly 60% of the CPAs and accounting professionals in attendance had clients that used cryptocurrency.
That was nearly three years ago — there’s no doubt that number has grown.
There’s a demand for software to connect traditional accounting techniques and the emerging technology of cryptocurrency. We believe that our simple interface, and integration with programs like QuickBooks Online and Xero, make Gilded the best crypto accounting software on the market.