The Accountant Quits Podcast

David Byrd, a Partner and Blockchain Strategy Leader at EY, dives into the world of internal controls for digital assets. He discusses the unique challenges faced in auditing this rapidly evolving space, including the need for specialized expertise. Byrd contrasts centralized and self-custody practices, emphasizing robust internal controls. He highlights the importance of accurate blockchain data and the significant impact of having a SOC 2 report. The conversation also touches on 'proof of reserves' in light of recent events in the crypto market.

There is no current standard framework on how transactions within DAOs should be structured and accounted for. Transactions on the blockchain or so-called block explorers are cash-based and do not comply with accrual-based accounting.  Today many companies having on-chain transactions use crypto sub-ledgers, but the essence of DAOs is to reduce the financial asymmetry of information and instead offer real-time and transparent accounting records.  One company making a significant contribution to advancing the state of on-chain accounting is Steakhouse Financial, a web3 consulting services firm, which has developed a methodology to offer real-time & independently verifiable financial statements for DAOs.   Steakhouse contributors collaborate with industry-renowned names such as MakerDAO, ENS, Lido, Morpho, Badger, and more.  To help us understand this novel way of accounting and reporting on-chain transactions for DAOs, I spoke with Adrian (also known as ‘@adcv_’ on Twitter, the Co-Founder at Steakhouse Financial. Topics covered; Episode intro (0:47) Adrian’s story into blockchain (3:10) Starting Steakhouse Financial (5:37) Using Dune Analytics to prepare MakerDAO’s financials (7:17) Can Steakhouse commercialize Dune Analytics dashboards as a product (14:30) Dune Analytics dashboards for Lido, ENS (15:52) How to start with Dune Analytics (18:22) SQL knowledge to learn Dubne Analytics (19:30) Using owner labels (21:59) Web3 tools used by Steakhouse Financial (24:03) Using AI for crypto accounting (26:27) Thanks to our sponsor Web3Finance Club (27:51) Benchmarks & performance attribution for DAO treasuries (29:38) Diversifying into wBTC, stETH, sDAI (36:30) DAO Accounting research paper, and should DAOs use sub ledgers (38:11) What is a rebased token and wrapping stETH to wstETH (42:47) Accounting for stETH & wstETH (46:58) How CFOs can manage treasury with staking (47:53) Overview of Steakhouse’s services (57:13) How should accountants upskill with blockchain (1:01:17) How to reach out to Adrian (1:04:19) Highly recommended reading - Nikolai's principles (1:04:58) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow adcv_: Twitter: https://x.com/adcv_  Follow Steakhouse Financial: Twitter: https://x.com/steakhousefi  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/

In its early days, businesses used crypto mainly for trading. However, more use cases have emerged in recent times. Making payments with crypto as we all know is lightning fast, but businesses utilizing self-custodial wallets need a full-fledged infrastructure with advanced customization. For example, managing user permissions and roles, creating approval workflows, and having quick integrations with exchanges or DeFi apps. The war for enterprise wallets is raging, and teams have to decide whether to opt for a fully decentralized multisig solution or rather a centralized MPC wallet infrastructure. To help us understand how companies can use crypto for operations and manage their treasury, I spoke with Bentzi Rabi, the CEO and founder of Utila, an enterprise-grade solution for digital assets. Topics covered; Episode intro (0:41) Challenges of web3 teams for operations (1:23) Multisig v/s MPC wallets (3:41) Why would a Gnosis Safe user switch to an MPC wallet (7:36) Thanks to our sponsor Cryptoworth (11:07) Onboarding with Utila (13:09) Receiving payments use case (17:39) DeFi & CEX connections (20:55) On-ramping & off-ramping (21:59) Integrations available (24:00) How Utila compares with Fireblocks (25:57) What companies should use Utila (29:50) Challenges for mainstream adoption (32:47) Bentzi’s favourite maxim (34:42) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Bentzi Rabi: LinkedIN: https://www.linkedin.com/in/bentzi-rabi/ Twitter: https://x.com/bentzzi 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/

Hugo Finkelstein, Co-Founder & CEO of Rise, dives into the transformative power of crypto payments for a globally distributed workforce. He discusses how platforms like Rise facilitate seamless compensation across borders, highlighting a surge in freelancer adoption in emerging markets. The conversation touches on the regulatory landscape, the rise of stablecoins in business, and the innovative compliance solutions Rise offers. Hugo shares success stories and explains how using crypto can help companies attract top talent globally.

The deadline for new crypto regulation in the EU, termed the Market in Crypto-Assets (MiCA) is fast approaching, and many are wondering - What exactly does MiCA entail, and how can you prepare for it? For starters, MiCA applies to a broad range of entities providing services related to crypto, including exchanges, custodians, wallet providers, brokers, investment firms, and more. There are two key compliance deadlines based on the nature of your services: June and December 2024. Now in the absence of a dedicated compliance specialist, the task of ensuring your web3 startup is MiCA-ready might fall on you, the Head of Operations or Finance. Being proactive and seeking legal expertise early is crucial. To help us get prepared for MiCA, I spoke with Anne-Grace Kleczewski & Anne-Lorinne Mognetti from MME. MME has been instrumental in the development of the "Crypto Valley" ecosystem and is a leading Swiss firm offering comprehensive legal, tax, and compliance services for digital assets and blockchain technology. Topics covered: Episode intro (00:47) Anne-Grace’s background (2:51) Anne-Lorinne’s background (6:21) What is MiCA & why it’s being introduced (7:41) Scope & requirements for MiCA compliance (10:42) MiCA & DeFi (13:11) Deadline of 30th December 2024 (19:19) Grandfathering rule and verifying the level of decentralization (22:46) Thanks to our sponsor Web3Finance Club (27:17) MiCA v/s current crypto regulations (29:11) Passporting feature & obligations for non EU companies (37:03) Reverse solicitation exemption (39:55) Attractive jurisdictions for non-EU companies (43:59) How MME helps with MiCA compliance (47:24) Services most requested by accountants & CFOs (50:26) How to make DeFi more accessible (53:35) Closing thoughts (58:20) Maxim of Anne-Grace & Anne-Lorinne (59:07) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Anne-Grace Kleczewski: LinkedIN: https://www.linkedin.com/in/anne-grace-kleczewski-789baa81/ Follow Anne-Lorinne Mognetti: LinkedIN: https://www.linkedin.com/in/anne-lorinne-mognetti-766586152/ 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/

In this engaging chat, Greg Mocnik, the CFO of Celestia Labs and former Head of Finance at dYdX Foundation, shares his journey from Ernst & Young to the forefront of Web3 finance. He discusses the value of skills like SQL for analyzing data, and the intense hiring process at dYdX. Greg also sheds light on innovative financial practices in the crypto space, including the use of advanced accounting tools and the unique challenges faced by CFOs in Web3. His insights are both inspiring and informative for aspiring finance professionals.

Blockchain technology is open source right, but to advance the development of accounting standards for digital assets, we need accounting bodies to be more open for collaboration in these changing times. This revolution cannot take place in an ivory tower. A group of accountants at Propeller Industries have answered the call, and are pioneering a new reporting methodology for digital assets, through the Statement of Digital Assets, or short for SoDA. SoDA is a standardized reporting methodology that bridges Generally Accepted Accounting Principles (GAAP) with on-chain holdings. By providing a transparent lens through which to view digital assets, SoDA demystifies the often-opaque GAAP balance sheets, offering stakeholders a clear picture of a firm's liquidity and digital asset holdings. On Episode 65, I spoke with Sam Leichman, the leader of the Blockchain Practice Area at Propeller Industries, who is leading the SoDA initiative. Propeller provides ‘full stack’ CFO and accounting outsourced services to VC-backed startups. Currently they work with over 50 web3 clients including Optimism, cLabs, Figment, POAP, and VeeFriends. Topics covered; Episode intro (00:47) Sam’s background & story learning blockchain (3:04) FASB digital assets 2023 update (9:26) SoDA vision’s & origin story (14:44) Thanks to our sponsor Web3Finance Club (23:30) Contributing to SoDA (25:12) Disclosures required in SoDA (29:54) Is SoDA for management reports or annual financial statements (33:30) SoDA reports in sub-ledgers (35:35) Use cases for SoDA (39:55) Propeller Industries & its web3 accounting services (43:46) Roadmap for SoDA (47:17) Favorite maxim of Sam (50:06) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Samuel Leichman: LinkedIN: https://www.linkedin.com/in/samleichman/ Twitter: https://x.com/samleichman 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/

Roderick McKinley, a Tokenomics and Finance Advisor, shares insights gained from helping crypto projects raise over $100 million. He emphasizes the critical elements of tokenomics, such as the minting process and supply. Roderick discusses whether every Web3 project genuinely needs a token and the importance of value accrual strategies. He also dives into unique financial modeling challenges in blockchain, explaining how well-structured tokenomics can lead to sustainable growth in the crypto ecosystem. His engaging anecdotes and expert knowledge illuminate the exciting world of token design.

Digital assets and their underlying blockchain technology are an evolving area, and as such accountants frequently face the daunting challenge of scrutinizing existing accounting standards to derive the most reasonable interpretation. Innovation outpaces the speed of accounting regulation, leaving standard-setting bodies like the FASB for US GAAP or the IASB for IFRS struggling to keep pace. Whilst the Wall Street Journal reported that 300,000 accountants quit their jobs between 2019 and 2021, There is an emerging class of accountants who have upskilled themselves to understand blockchain for accounting. On Episode 63, I spoke with Andrei Belonogov, the Managing Partner of TechAccountingPro, a company that provides accounting & US GAAP advisory services for digital assets. Andrei is not your typical accountant. His blog focused on deciphering the accounting treatment of digital assets under US GAAP was recognized in the top 100 accounting blogs by Feedspot. Topics covered; Episode intro (00:47) SAFT accounting (2:54) SAFT measurement with & without active market (5:08) Token development costs (6:05) Accounting for smart contracts (7:23) Receivables & embedded derivative (8:56) Staking rewards for delegators (12:33) Do sub-ledgers help with tracking staking income (15:14) Thanks to our sponsor Web3Finance Club (16:52) Classification between non-current & current assets (18:33) Accounting for stablecoins (21:49) Andrei’s story transitioning to web3 (25:24) Services offered by TechAccountingPro (27:40) The act of writing (29:48) Why should accountants learn blockchain (31:21) Should accountants learn how to code (34:10) How to reach out to Andrei (36:01) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Andrei Belonogov: LinkedIN: https://www.linkedin.com/in/andrewbelonogov/ Twitter: https://twitter.com/tech_accounting 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/

COVID has changed the game for companies hiring internationally. Previously, if an employer didn’t have an established business, or a legal entity in the jurisdiction where the foreign worker lived, often their only option would be to hire the worker as an independent contractor. Companies couldn’t hire full-time employees and were thus unable to grant health insurance, pension, and other benefits, like stock options. Enter the Employer of Records model which allows companies without entities abroad to employ workers full time and give them benefits they couldn’t grant to them as contractors. A few of the notable names in web2 would be Deel, Oyster or Remote.com Now if you’re a web3 team and wish to pay employees in crypto, these companies offer limited features for Global crypto payroll. Enter Niural, the EOR platform designed for crypto, which also provides a single HR tech platform for Payroll, Contractor Management, Employee Benefits, and Bill Pay. Some of their web3 users include companies such as Alliance DAO, Tensor, Flare, Hadron Labs, Omni, and Glo Dollar to name a few. On Episode 62, I spoke with its Founder Nabin Banskota, a serial entrepreneur with 20+ years of experience in fin-tech, HR, payroll, and sales to learn more about how they facilitate global crypto payroll. Topics covered; Episode intro (00:47) Nabin’s background & story behind Niural (3:27) Trends in web3 hiring (5:38) Hiring as a contractor (10:37) Hiring an employee & EOR model (13:07) Difference between EOR & PEO (14:55) Adoption of crypto from web2 companies (17:55) Overview of Niural (23:28) Monthly payroll process through Niural (26:52) Countries eligible for onboarding (29:25) Thanks to our sponsor Web3Finance Club (32:08) Experience of a true payroll product with a paystub (33:50) Withdrawing funds from Niural (36:54) Roadmap & upcoming milestones (39:37) Trends accelerating crypto adoption (42:09) Closing thoughts (45:35) Favorite quote or maxim (47:32) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Nabin Banskota : LinkedIN: https://www.linkedin.com/in/nabinbanskota/ 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/