Bitcoin is well-known among investors and accountants but if we talk about “Cryptocurrency” a few people have an experience about this word.
This year the word “Cryptocurrency” will bring a lot of question to accountant and advisor such as What is cryptocurrency? How does it affect accountants and accounting records? Etc. So, TRIFORCE wants to share with you now.
Before we know more about Cryptocurrency, we should know “Blockchain” because blockchain is the technology network that work with cryptocurrencies. This technology creates a method for transacting, and enables transferring of value and information. With high security, blockchain technology is accepted by bank and financial institute to support their Fintech direction.
What is Cryptocurrency?
A cryptocurrency is a digital or virtual currency that means it’s all online. Bitcoin and Ether are well-known of cryptocurrency but the new crypto continue to create more. Even Facebook also create their own digital currency that called Libra but it’s still cannot trust.
How does it affect Accountants and Accounting records?
Cryptocurrency is treated as company’s assets. It is a type of investment which is subject to taxation when companies convert it to cash and make profit from it.
Companies may accept cryptocurrency for payment to facilitate their customers. Companies may also convert cryptocurrency payments into dollars.
TRIFORCE provides SunSystems accounting software which support recording of cryptocurrency, including tracking & reporting. For more information, contact us : info@triforcegs.com
References :
https://bit.ly/2zgzvi0
https://bit.ly/2sn9ZV3
