The Accountant Quits Podcast

Anyone who decides to build a project in web3 involuntarily accepts to have to surmount heaps of legal challenges, to be legally compliant. Many web3 businesses are borderless and this places a big regulatory burden, especially for those in their very early days. Whether you are a centralized or decentralized project in web3, planning to issue tokens, finding the appropriate legal structure for your DAO, and understanding the legal implications of distributing tokens to employees, speaking with an experienced web3 legal specialist might save you hours and money in the long term. You don’t want to be losing sleep thinking “Are we allowed to do that” or “Have we overlooked something in our legal structure” To help us better understand how to define the legal strategy for your web3 startup and DAO, I spoke with Han Verstraete, the CEO & Founder of Otonomos. Since 2015, Otonomos has helped builders and investors in crypto form and maintain their legal entities in all major jurisdictions around the world. Topics covered; Episode intro (00:48) Han’s background and story founding Otonomos (2:34) What is a Token SPV (5:45) VASP jurisdictions to issue tokens (8:59) When to choose BVI, Cayman Islands, Switzerland (12:20) Legal structures for DAOs (15:27) Best jurisdictions for DAOs (23:58) Thanks to our sponsor Web3Finance Club (29:09) Do you even need a bank? (30:57) Framework for legal structure for web3 startups (38:00) Overview of Otonomos (43:14) OtoCo & creating an on-chain company (47:27) Getting started with OtoCo (52:46) Adoption of crypto in 2024 (53:56) Closing thoughts (58:39) How to reach out to Han (01:01:26) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Han Verstraete: Twitter: https://twitter.com/hanverstraete LinkedIN: https://www.linkedin.com/in/hanverstraete/ 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/

While there is a lot of guidance and literature on Treasury Management in traditional finance, in web3, a lot of those concepts don’t apply. Managing treasury fiat currencies in traditional finance largely involves managing banking partners whereas with cryptocurrencies, that involves managing your wallet addresses in the event you’re using self-custodial wallets. Many web3 firms do not have a dedicated Treasury Manager, and therefore it’s up to that person to figure out things like custody, using DeFi platforms, on and off ramps, tokenomics if applicable, or managing payroll and expenses using crypto. To help us better understand web3 treasury management, I spoke with Nik Pletikos, the Founder of DeFiwaves, a consulting firm specializing in Tokenomics Design and Web3 Treasury Management. Nik currently manages the treasury & tokenomics for multiple protocols and previously spent 4 years building the treasury department at Bitstamp, one of the longest-running crypto exchanges. Nik has been working with some of the leaders in the industry, such as Hacken, and Sweat Economy. Topics covered; Episode intro (00:39) Nik’s background & story learning blockchain (3:02) Hedging against volatile crypto assets (4:28) Fiat v/s stablecoins management (10:29) Solutions like OpenEden, Ondo Finance, Maple Finance (13:59) Thank you to our sponsor Web3Finance Club (16:29) Managing counterparty risk with banks & exchanges (18:13) Investing in DeFi protocols (21:19) Investment policies for DeFi (24:09) Laddered investment strategy for DeFi (26:57) Thank you to our sponsor Convoy Finance (31:21) Native token management (33:37) Overview of DeFiWaves for tokenomics design (38:37) Hiring a web3 CFO to manage treasury (40:52) Reach out to Nik (47:09) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Nik Pletikos: Twitter: https://twitter.com/ethreasurer LinkedIN: https://www.linkedin.com/in/nikpletikos/ 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/

Choosing accounting as a career path seems to be losing some of its prestige in recent years. Technologies like AI and blockchain will not take the accountants’ jobs but rather, it’s those accountants who have upskilled themselves on blockchain who will. So rather than being seen as a threat, many accountants are evolving with blockchain. On Episode 56, I spoke with Shivani Phull, the VP of Finance & Investments at Pixelynx, an AI music creation platform. Shivani is also a CFO Advisor at the Crypto Accounting Group, a crypto accounting & taxation services firm, and a Mentor at Outlier Ventures, a web3 VC and accelerator. To inspire more accountants to upskill themselves with blockchain, this conversation today will revolve around Shivani sharing her experience, challenges, learnings, and career advice for transitioning from a web2 CFO to a web3 CFO. Topics covered: Episode intro (00:39) Shivani’s story of becoming an accountant (2:37) Falling into the web3 rabbit role (4:43) Initial challenges with crypto accounting (8:52) Understanding block explorers (10:58) Thank you to our sponsor Cryptoworth (11:50) Helping early-stage founders with fundraising (13:33) Best practices around web3 accounting (16:22) Setting & tracking KPIs (19:37) Tooling for web3 accounting, sub-ledgers (21:55) Thank you to our sponsor Convoy Finance (23:58) Setting chart of accounts in main ledger (25:29) Career advice for unhappy accountants (26:50) Getting hired as a web3 accountant (30:00) How does Shivani take time off (31:28) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Shivani Phull: Twitter: https://twitter.com/shivv_p LinkedIN: https://www.linkedin.com/in/shivani-phull-30bb1953/ 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/

The 2 words on every crypto accountant’s lips these days are fair value. Until now, crypto assets had to be measured at initial cost and could not be revalued at its market price. To make matters worse for investors, they were also subject to an annual impairment review, and any subsequent gains in the value of the asset could only be realized at the time of disposal. In December 2023, the FASB published an update that seeks to better reflect the economics of crypto assets, thereby allowing companies to measure crypto assets at fair value. In short, these new changes seek to improve the accounting for and disclosure of crypto assets so investors can make more informed decisions. On Episode 55, I had the pleasure to have a returning guest, one of the most highly sought-after & well-respected crypto accountants in the industry, Mackenzie Patel, the Founding Partner at Hash Basis, a crypto accounting & taxation services firm. Topics Covered: Episode intro (00:39) Mackenzie’s background (2:54) Cost less impairment accounting for crypto (4:17) US GAAP fair value accounting for crypto (5:39) Is impairment still required (7:46) Crypto assets fair value accounting applies to (9:22) New disclosure requirements (12:27) Thank you to our sponsor Cryptoworth (16:32) Concerns with new US GAAP update (18:06) Adjustment for retained earnings (20:04) Sub-ledger features for fair value accounting (23:59) Cash flow requirements (26:46) Thank you to our sponsor Web3Finance Club (29:35) Crypto accounting & tax services with Hash Basis (31:33) Career opportunities at Hash Basis (35:00) Onboarding of new clients at Hash Basis (36:14) Form 8300 and tax reporting over $10,000 (39:16) A failure that set Mackenzie up for success (42:55) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Hash Basis: Twitter: https://twitter.com/HashBasis LinkedIN: https://www.linkedin.com/company/hash-basis/ 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/

Are you as a company contemplating using crypto assets in your business? Be it for investment purposes or rather in your daily operations? The 1st advice irrespective of the jurisdiction you’re in, is to speak with a qualified tax advisor. Once you understand the crypto inflows and outflows, you can also determine the character of income of your crypto. Which fall under 2 buckets - ordinary income subject to income tax and capital income subject to capital gains tax. Since tax is jurisdiction-specific, I’m starting a new series on Crypto Taxation and for the 1st episode, we’ll look into the US 🇺🇸 And on Episode 54, I spoke with David Zareh & Aryeh Munk, the Managing Partners at OnChain Accounting, an accounting and tax services firm focused on crypto. Topics Covered: Episode intro (00:39) David & Aryeh’s story of how they got into blockchain (2:44) Capital gains tax for crypto (7:18) How holding period affects CGT (12:19) Taxes on bridging crypto (14:29) Providing liquidity and receiving LP tokens (16:57) Income tax for crypto (20:48) Thank you to our sponsor Cryptoworth (23:05) Staking rewards & having dominion (24:43) Tax optimization - cost basis (28:57) Using a crypto sub-ledger to optimize tax expenses (31:40) Tax loss harvesting & wash sales (32:25) Thank you to our sponsor Web3CFO Club (36:45) Challenges for crypto tax compliance (36:22) How to choose a crypto sub-ledger (41:08) How does OnChain Accounting help with crypto accounting & taxes (43:37) Crypto Accounting Guide, by OnChain Accounting (47:27) Closing thoughts (50:31) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow OnChain Accounting: Twitter: https://twitter.com/OnChainAcctng LinkedIN: https://www.linkedin.com/company/on-chain-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/

Marnus Kruger and Chris O'Reilly from Harris & Trotter are experts in auditing for crypto companies. They dive into how to prepare for audits, emphasizing the importance of verifying ownership of crypto and proper asset valuation. The duo discusses the criteria for accepting audit engagements and the complexities of recoverability from DeFi protocols. They also explore innovative tools for proving crypto ownership and the crucial role internal controls play in maintaining financial accuracy. Tune in for valuable insights on navigating the audit process in the digital asset space!

The Crypto Accounting Academy is a 6-week course, ​​brought to you by experts in the web3 industry, to give you the practical knowledge of running a business on crypto. After the course, you will be equipped with the knowledge to be hired at a web3 company as an Accountant, Financial Controller and/or CFO. Learning crypto accounting by yourself involves months of frustration, as having an understanding of how to import 100% of transactions from block explorers is not straightforward. Through a 6-week cohort, we’re bringing the following instructors to get you crypto-ready; Christophe Lassuyt - CEO & Co-Founder of Request Finance Tarun Gupta - CEO & Founder of Coinshift Mackenzie Patel - CEO & Co-Founder of Hashbasis Mo Yang - CEO of Convoy Finance & CFO at Fuel Labs Richard Pasquin - COO & Co-Founder at Cryptoworth Nik Pletikos - Head of Treasury at Sweat Economy Michael Cieri - Accounting Manager at Polygon Labs Umar Mallam Hassam - Creator of The Accountant Quits Sign up for the 1st cohort starting October 19 => https://www.theaccountantquits.com/crypto-accounting-academy Unsure Whether This Course Is Right For You => Book A 1 On 1 Call Topics Covered Episode intro (00:00) Problem learning crypto accounting (2:05) Modules in the academy (4:27) Instructors of the academy (10:10) What is the course not about (14:33) Who is this course for (16:15) Do you have to be an accountant to join (17:24) Resources offered with course (18:12) Pricing (19:26) Why I’m launching a Crypto Accounting Academy (21:06) Should you quit your job (22:19) How to decide whether this course is for you (24:26) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits 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/

If a business has a subscription pricing model and wants to accept both fiat & crypto as payments, that would mean using a combination of fiat and crypto payment gateways. For example, Stripe works for fiat, and Coinbase Commerce works for crypto payments. The issue here is that the merchant has to manually reconcile payments flowing through these 2 payment gateways, and so far a unified web3 billing solution did not exist. Enter Super, a Web3 Subscription billing platform acting as a bridge between fiat and crypto payments. Super allows you to manage your subscribers' data and their subscriptions and helps you to get rid of the manual work involved in connecting fiat and crypto payments. On Episode 51, I spoke with its Co-Founder & CEO, Bisola Asolo. Topics covered; Episode intro (00:37) Story of Bisola co-founding Super (2:20) Subscription billing platform v/s Payment gateway (3:53) Are web3 teams collecting payments in crypto today (7:14) Thank you to our sponsor Cryptoworth (8:31) What is Super, & features for subscription billing (10:05) Onboarding new customers (12:05) Finding 1st customers with Super (13:23) Use cases & how clients use Super (15:13) Thank you to our sponsor Convoy Finance (16:51) Roadmap & upcoming milestones (18:46) Challenges on adoption from web2 businesses (20:15) Lessons learned in scaling a business (22:48) Closing thoughts (24:37) Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Super: Twitter: https://twitter.com/trysuper_ Follow Bisola Asolo: Twitter: https://twitter.com/bisasolo 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/

The theme of this episode is tracking DeFi transactions, and providing the CFO managing their crypto treasury with how to generate a historical report of their DeFi positions, with their realized & unrealized gains/losses, interest income & losses & rewards earned. If you’re not using a dedicated crypto tool, and having to manually retrieve the data from inspection tools, like block explorers, the monthly/annual reporting and cash flow forecasting can be very time-consuming. On episode 50, I spoke with Tal Zackon, the Co-Founder & CEO of Tres Finance. Tres Finance provides you with a one-source truth to track and consolidate your DeFi and TradFi transactions simultaneously and stay compliant with your accounting and audit. Topics covered; Episode intro (00:40) Story of Tal co-founding Tres (2:20) Challenges tracking on-chain transactions (8:27) What is Tres Finance (10:59) What is a financial data lake (15:02) Sub ledgers v/s financial data lake (18:16) Onboarding with Tres (19:13) Thank you to our sponsor Convoy Finance (20:54) Capturing onchain & offchain transactions with Tres Link (22:30) Use cases of clients using Tres (23:30) Automation practices & labeling (27:38) Integration with Xero, Quickbooks, Oracle Netsuite (29:27) Reconciliation with ERP integration (32:06) How Tres compares to its competitors - Bitwave, Cryptio, Cryptoworth (33:05) Banking integrations - Plaid (36:54) Thank you to our sponsor Web3CFO Club (37:53) Pricing with Tres (39:36) Certification program for accounting & audit firms (44:11) Roadmap and upcoming milestones (46:28) Challenges for adoption (48:57) Closing thoughts (50:15) How to reach out to Tal (51:43) Brought to you by Web3CFOclub - A community of web3 CFOs sharing best practices around web3 financial operations 👉 Join now for in-person events and grow your network at theaccountantquits.com/web3cfo/ Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Tres Finance: Twitter: https://twitter.com/TresDotFinance Follow Tal Zackon: Twitter: https://twitter.com/TalZackon 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/

While Safe (previously Gnosis Safe) has become the gold standard for self-custodial wallets, anyone listening who has previously used Safe, which requires the approval of more than one user for transaction execution, would often say that the user experience is sub-optimal. Some of the examples of the recurring pain points using a Safe alone for approving multisig transactions are that only the safe signer can create a safe transaction or that transactions cannot be easily edited without canceling the initial transaction. One company helping crypto organisations better manage their multi-sig treasury transactions on top of Safe, is Coinshift. Coinshift’s mission is to simplify on-chain treasury operations , whether for payments, reporting, and asset management. On episode 49, I spoke to its Founder & CEO Tarun Gupta. Topics Covered Episode intro (00:40) The story behind Coinshift (2:40) How Safe works (7:54) Pain points for users with Safe alone for multi-sig transactions (11:52) Overview of Coinshift (13:18) Thank you to our sponsor Cryptoworth (16:43) Onboarding with Coinshift (18:22) Pricing for Coinshift (21:36) Proposal on Coinshift v/s transaction on Safe (23:28) Most used chains & tokens (26:15) Financial reporting & asset management feature (27:17) Coinshift apps - CowSwap, Aave, LiFi, Request Finance (30:49) How CowSwap works with Coinshift (33:18) Integration with Request Finance (35:27 ) Why use Coinshift in combination with Request Finance (36:44) Thank you to our sponsor Web3CFO Club (38:40) Positioning against competitors like Utopia Labs, Multis, Parcel (40:24) Account abstraction and onboarding the next billion of web3 users with Safe (44:37) Closing thoughts of Tarun (49:24) How to reach out to Tarun & Coinshift (51:03) Brought to you by Web3CFOclub - A community of web3 CFOs sharing best practices around web3 financial operations 👉 Join now for in-person events and grow your network at theaccountantquits.com/web3cfo/ Follow The Accountant Quits: LinkedIN: linkedin.com/company/the-accountant-quits Twitter: twitter.com/accountantquits Follow Coinshift: Twitter: https://twitter.com/0xCoinshift Follow Tarun Gupta: Twitter: https://twitter.com/tarungupta1475 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/