Starting a cryptocurrency-related business, like selling non-fungible tokens (NFTs) for example, is a great way to launch an online side-business or second income. Because crypto transactions are treated financially as trading commodities, especially when they involve exchanges back to fiat currencies, taxation is going to be an issue.

Getting Technical Quickly

Cryptocurrency businesses require a good amount of spreadsheet work translating cryptocurrency blockchain transactions into standard bookkeeping records and ultimately accounting to report tax-related income. With a few transactions, this might be doable every week. However, when a crypto business really gets going, those transactions could add up to hundreds or thousands. Now it’s time for bookkeeping support.

The work is essentially translating financial behavior from one environment to another. While cryptocurrency transactions can be easy to download from a blockchain explorer online, tracking each and every transaction that has an impact on one’s business accounts becomes tiring work. This is exactly the kind of task that a remote bookkeeper is ideal for.

Shift Back to Your Core Services

Remote, outsourced bookkeeping is perfect for a crypto-related business (see an example here: https://myrqb.com/). With a combination of cloud tools and workload support around the clock, remote bookkeeping can easily keep up with a business NFT storefront or exchange platform without falling behind. Since cryptocurrency business happens 24/7 and is essentially accessible to anyone around the world with a connection, the potential for transaction workload can be immense. Tax agencies don’t give a small business a break in this regard either.

Tax reporting generally expects to see both the inflows and outflows of a business income, online or in-person. They also want to see detailed explanations of operational expenses that are deducted from income to ascertain whether net income is in fact accurate or, worse, fudged. Taxes on a business’ success can’t be ignored or deferred as it would result in very painful penalties when caught. Instead, a business needs to start off right with its accounting, and remote bookkeeping brings in the talent for the detailed workload blockchain transactions produce daily.

Handling Workload by Delegating

The big buzzword in successful management has for years been delegation of tasks, and that holds true for accounting work as well. Instead of being buried in the minutia of blockchain transactions, the smarter play is to have your cryptocurrency business activity focused on growth, market activity and opening up new avenues for more income. Delegating your administrative bookkeeping to a remote support team is not only smart, it will save you from days of exhaustion as well, allocating your needed time to running the online business instead, especially when your audience starts wanting high volume from your offerings or services. Think and work smart online, not harder.