The Accountant Quits

Financial statements tell a story about the position & performance of a company, but today the story is incomplete when companies hold digital assets!! The Statement of Digital Assets or SoDA aims to bridge the gap to tell the full story of a firm’s liquidity & accounting of digital assets. Whilst this is not an officially recognized financial statement yet, it’s an open-source whitepaper,  initiated by Propeller Industries. The aim of SoDA is to establish a common framework for the reporting of digital assets, with already significant contributions from numerous web3 accountants. On Episode 65, Samuel Leichman, who is leading this initiative from Propeller shares how to rally more accountants to contribute & provide feedback to SoDA. Some of the topics covered in Ep 65; ▪ SoDA vision’s & origin story (14:44) ▪ Contributing to SoDA (25:12) ▪ Disclosures required in SoDA (29:54) ▪ Is SoDA for management reports or annual financial statements (33:30) ▪ SoDA reports in sub-ledgers (35:35) 👉 Listen to the full episode here - https://lnkd.in/dacePdnT 👉 Download a copy of SoDA here - https://sodafinance.xyz/ Brought to you by Web3 Finance Club 🙏

If you have crypto on your balance sheet, what are you as the finance team expected to provide to external auditors? & essentially be audit-ready?? To gain assurance over the crypto operations of the business, auditors require a certain number of crypto-specific deliverables;  ▪ Transaction Ledgers for Blockchain - Downloads from block explorers or sub-ledgers  ▪ Token balance valuations - Support for the pricing source such as #Coingecko or #Cryptocompare  ▪ Digital Wallet Records - Records of wallets including wallet management policies. ▪ Smart Contract Audits  ▪ Token Distribution Records - Any SAFT documentation As a member of the finance team, you need to document your crypto operations & processes throughout the year, and not wait year-end to start. 😬 Remember the adage used by auditors - 'if it’s not documented, it’s not done.' 👉 For a more in-depth study on how to prepare an audit with digital assets, see full article - https://lnkd.in/eKxxEEiM

Crypto accounting isn't a check-the-boxes-and-go-home style of accounting, & so what’s the persona that describes a crypto accountant? I always like to end my episode by asking my guest about their 'favorite quote or maxim', And on Ep. 65, Samuel Leichman from Propeller Industries paraphrases the quote from JFK about going to the moon, “We’re not going to do it because it’s easy. We're going to do it because it’s hard” Meaning crypto accounting might not be the cup of tea for an accountant who likes predictability but rather for one who’s up for a daily challenge ;) Full episode comes out on May 31st. & you can listen to all episodes here - https://lnkd.in/du7pYTfK Brought to you by the Web3Finance Club

Imagine accountants coming together to create best practices for digital assets reporting. Not through traditional accounting bodies such as the #IASB or the #FASB. But rather as an open-source initiative, where any accountant can collaborate. This is precisely what the Statement of Digital Assets or SoDA is. Born from an idea of Propeller Industries, a crypto accounting & Fractional CFO firm for web3 startups, SoDA aims to be the new standard for reporting On-Chain Assets. On Episode 65, Samuel Leichman, who is leading this initiative from Propeller shares how to rally more accountants to contribute & provide feedback to SoDA. Launched in 2023, SoDA v1 saw contributions from industry experts like Emily Westerhold from a16z crypto, David Byrd from EY, and Palash Agarwal, CPA from OP Labs. Now SoDA v2, currently in the works, is attracting even more web3 accountants to their cause & is set to launch in September 2024. In this episode, we’ll also cover; ▪ What’s a Statement of Digital Assets (SoDA) & why do we need one, ▪ The proposition of SoDA to improve transparency of wallets & digital assets held, ▪ How SoDA complements and improves the current FASB ASU for digital assets, ▪ How sub-ledgers intend to incorporate SoDA reports into their platform. Listen to all episodes here - https://lnkd.in/du7pYTfK Full episode comes out on Friday, May 31st.

Kudos to Barnabas Debreczeni for taking the initiative to enroll in the 1st comprehensive course on Crypto Accounting. Barnabas always made sure our Q&As were never dull, and we thank you for all your questions. Despite his experience in web3 accounting & finance, Barnabas found the course beneficial in learning best practices. Congrats on completing the course, and looking forward to hearing more about your career developments 💪 Registrations for the next Cohort on September 5th are now open 👀 Apply Now - https://lnkd.in/enYcsmVn

On average, the crypto accountant earns 128% more than the traditional accountant 😲 The Finance Manager - 37% more & the CFO - 17% more By lifting the veil on compensation for accounting & finance professionals in web3, these results reiterate that having specialist crypto accounting knowledge is rewarded across all functions. Hopefully, this is an omen to inspire more accountants to transition from traditional accounting to crypto accounting. ✨ After their industry-acclaimed Web3CFO Guide, Request Finance strikes back, and we're looking forward to the report Christophe Lassuyt

How to design long-term incentives around a token, and how do CFOs prepare for launch? Does every web3 project need to offer a token, and if so how to manage token distribution? On Ep 64, Roderick McKinley, CFA , a Tokenomics and Finance Advisor who has helped projects raise over $100m, by structuring their token sale offers and designing their token economies, helps us find some answers. Some of the topics covered in Ep 64; ▪ Value accrual concept (8:58) ▪ Does every web3 project need a token (16:41) ▪ Plan for launching a token (23:08) ▪ Financial modeling with tokens (28:07) ▪ Managing token distribution - investors & employees (33:07) ▪ Emerging career opportunities with token engineering (42:57) 👉 Listen to the full episode here - https://lnkd.in/dgj577fX Brought to you by Web3Finance Club 🙏

How to pivot your traditional accounting practice to offer crypto accounting & tax services? Ask 🟧 Electra Frost joining Cohort 3 of the Crypto Accounting Academy, who now helps web3 startups and DAOs understand how to report digital assets on their balance sheet. Just like how Electra saw an opportunity to service companies holding digital assets and making stablecoins payments, As the leader of your accounting practice, all it requires is a few months of investment in learning how blockchain works. Cohort 3 starts today, and you have a few hours to join us - https://lnkd.in/enYcsmVn

Are you getting ready to launch a token? In your checklist to launch, some of the areas you might be looking at are;  ▪ The initial token minting and distribution ▪ Speaking to a legal advisor to assess the need for a Token SPV ▪ Determining the token cap table On Episode 64, Roderick McKinley, CFA a token design consultant from rmckinley.net explains that if you’re a CFO or Head of Finance, the most important thing to get right is your budget. 👈 & not having fantasy scenarios on how markets could turn in your favour and have your token go to the moon ;) In this episode, we’ll also cover;  ▪ The value accrual concept and what drives token utility  ▪ Best practices for projecting future financial performance with tokens ▪ Managing token distributions,  ▪ Becoming a Token Engineer as a career field. Listen to all episodes here - https://lnkd.in/du7pYTfK The full episode comes out on Friday, May 17th

📣 Speaker Announcement - Crypto Accounting Academy, Umar Mallam Hassam 📌 What: Blockchain Ireland Week 2024 📌 When: May 28th & 29th 📌 Where: Trinity Business School 👉 Get your ticket here: https://lnkd.in/dwkM7B87