Episode 32 | Jakub Sawczuk from AEM Algorithm on Crypto Accounting in Xero

May 27, 2022

Ask episode

Chapters

Transcript

Episode notes

The adoption of cryptocurrencies also lies in the ability of that data to be easily extracted into any accounting software from the different crypto wallets & exchanges.

As of today, the legacy accounting softwares do not integrate with cryptocurrencies for pricing, and accounting for crypto involves some workaround.

One company which has for mission to simplify financial reporting of crypto is AEM Algorithm, with their product AEM Journaler.

AEM Journaler is a Xero certified accounting platform for tracking and managing cryptocurrency transactions and exporting data into accounting systems for financial and tax reporting.

And on Episode 32, I speak to its founder Jakub Sawczuk. As a certified accountant, Jakub is working to facilitate the adoption of digital assets by building a bridge between crypto and traditional accounting systems, like Xero.

Topics covered;

Why Jakub founded AEM Algorithm (2:27)
What’s different with crypto accounting (4:33)
The challenge for bookkeeping is getting from block explorer to accounting software (7:25)
How AEM Journaler works? (9:38)
Crypto exchange gains/losses with every transactions and how to report (11:46)
Walkthrough of holding Ethereum as investment, and importing that data from exchange to Xero (14:37)
Creating bank accounts in Xero that represent wallet addresses (18:39)
Good practices for crypto accounting in Xero (20:51)
Merge multiple wallet addresses into 1 single account in Xero (22:57)
Challenges for crypto accounting in Xero (24:51)
Request Finance commercial break (28:23)
Reporting of DeFi transactions into Journaler (30:18)
What’s different with AEM+, the mobile crypto wallet (33:56)
Why build an invoicing module in AEM+ (36:55)
Barriers for crypto adoption (38:48)
Closing thoughts on how to simply crypto accounting for individuals/corporates (41:31)

Brought to you by

Request Finance - an all in one platform to manage and track invoices, salaries & expenses in crypto.

👉 Earn $10 in REQ tokens when you sign up using promo link at theaccountantquits.com/request

Review

If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes.

Website

For show notes and past guests, please visit theaccountantquits.com/podcast/

Follow The Accountant Quits:

Instagram: instagram.com/theaccountantquits/

LinkedIN: linkedin.com/company/the-accountant-quits

Twitter: twitter.com/accountantquits