I invested company funds in Bitcoin, which I intend to hold for many years. How do I account for this in my accounts on Quickfile? Currently I have the amount I paid from my GBP account for the Bitcoin untagged in my Quickfile. How do I tag this?
Someone suggested “As far as I can see from an accounting perspective you’d just create a BTC virtual bank account then treat any BTC acquisitions as a transfer from the current account. Occasionally you’d need to revalue the portfolios with adjustments or journals. But they are unrealised loss/gains until sold.”
How do I create a virtual bank account for BTC in Quickfile?
Thanks - I have purchased the Quickfile upgrade. How do I tag the payments I made to buy the Bitcoin from my current account and link it to my crypto portfolio? There doesn’t seem to be any help articles on the crypto topic?
Also, I see I can only setup crypto purchases made in GBP. Most crypto is purchased with USD. I see I can switch between different currency views as an option, but this makes the figures way off by hundreds of dollars of what I actually paid in USD. For example, I spent $20,000 on Bitcoin, and I put the equivalent in GBP, and Quickfile is inflating the figure to $20,272 because I have to guess the equivalent GBP price.
Right now there is no synchronisation of the crypto portfolio balances to the main accounting system (this is coming soon). However as you mentioned this can be achieved using a merchant type account. So the payment to the exchange would be tagged as a transfer to a “Crypto Holding Account”.
That obviously covers the value of the initial investment, but not the unrealised loss/gains as the value of the crypto assets fluctuate. This is where it gets a little more complicated.
From a reporting point of view, generally speaking only realised loss or gains should be presented on the accounts. Unless the crypto was disposed of or swapped then there is no realised gain.
You can technically still track the unrealised loss or gains by posting periodic adjustments to the “Crypto Holding Account”, you can then tag these entries to a custom asset code on your chart of accounts called “Unrealised Crypto Asset Loss / Gains”.
I would recommend discussing the above with your accountant as if you do report unrealised loss or gains on your balance sheet, your accountant may need to remove them off again before filing your accounts.
Also, I see I can only setup crypto purchases made in GBP. Most crypto is purchased with USD. I see I can switch between different currency views as an option, but this makes the figures way off by hundreds of dollars of what I actually paid in USD. For example, I spent $20,000 on Bitcoin, and I put the equivalent in GBP, and Quickfile is inflating the figure to $20,272 because I have to guess the equivalent GBP price.
