Tracking Cryptocurrency Purchases

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  • Updated 6 months ago
When I use some business money to invest in cryptocurrencies, how should these be tracked in Reckon Hosted? I'm assuming a bank account in the name of the crypto-currency purchased. Would there then need to be an adjustment account of some kind (liability maybe?) where once a month (or at whatever interval) you could do an adjustment? What would the process be to track this?
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Jay Garland

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Posted 6 months ago

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Linda Putland, Accredited Partner

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Hi Jay - depending on if you keep the crypto in a hot wallet or a cold one - I would maybe suggest using an Other Current Asset account for the cold wallet/investment funds but a Bank account for the hot wallet?  Then depending on your business structure (eg company, sole trader or partnership) I would suggest an Equity Account called Crypto/Market Revaluation account?