How to integrate cryptocurrencies into your company’s financial statements

How to integrate cryptocurrencies into your company’s financial statements

Integrating digital assets into your company accounts requires clear classification, precise valuation, and compliance with tax rules. This guide helps you record, value, and report your crypto holdings according to accounting standards and regulations 🚀

1. Identify the nature of your crypto assets

First, determine whether your cryptos are:

• Fixed assets (long-term holdings)
• Inventory (crypto held for resale)
• Financial instruments (stablecoins or lending tokens)

This classification dictates the account used:

• Intangible assets (account 205)
• Inventory (accounts 607 or 356)
• Financial instruments (accounts 512 / 667 for flows)

2. Value your digital assets

Valuation is key:

• At acquisition: record purchase cost (price + fees)
• During the period: adjust with provisions or revaluation differences if prices fluctuate
• On disposal: calculate gain/loss between sale price and book value

Keep a transaction log: date, amount, counterparty, wallet used 🗒️

3. Record daily operations

• Buying crypto:
  • Debit asset account
  • Credit cash/supplier account
• Selling crypto:
  • Debit cash
  • Credit asset + recognition of gain/loss
• Paying in crypto:
  • Debit expense/purchase
  • Credit crypto asset account

Network fees go to bank fees (account 627) 🔄

4. Tax reporting and obligations

In France, business crypto gains often fall under:

• Trade income (BIC) if trading activity
• Non-commercial profits (BNC) depending on structure

Your obligations:

• Report gains in tax return
• VAT: EU exchanges handle VAT on services
• Maintain precise records for audits 📑

5. Use a dedicated tracking tool

To streamline crypto accounting, choose software that:

• Imports transactions automatically
• Produces reports to standard
• Integrates with your ERP/accounting system

This cuts manual errors and saves time ⏱️

In short

Integrating crypto into your balance sheet needs clear classification, rigorous valuation, and compliance with tax rules. With proper tracking and the right tools, you ensure transparency and legal compliance for your business 😊