The Accountant Quits Podcast

If you’re an employee receiving your net salary at the end of the month, there is a series of financial operations that your employer must address. Starting with your gross salary, there is a string of deductions like taxation, pensions, social security, medical insurance before arriving at your net salary - the actual funds that get credited in your bank account. If you’re a company seeking to pay your employees and contractors in crypto, you need a single dedicated payroll solution that takes into account all these components, otherwise the payroll process becomes fragmented. Enter Franklin, a hybrid fiat and crypto payroll solution which allows you to automate all payment flows for payroll. On Episode 41, I spoke with its co-founder and CEO, Megan Knab. Topics covered; Megan’s background and how he got interested with blockchain (2:46) How payroll process works, financial deductions and net salary (7:44) Challenges creating a tax compliant web3 payroll product (11:03) How Franklin helps to automate crypto & fiat payroll (15:06) How Franklin handles tax payments (17:29) Mass pay payroll function (19:34) How to pay your workforce on multiple chains/crypto in 1 single transaction (23:22) Direct crypto deposit & direct bank deposit with Franklin (27:10) How is Franklin different to competitors like Request Finance, Bitwage, Utopia Labs, Parcel, Coinshift (28:22) Joining Web3CFO Club and network with high profile web3 CFOs (30:14) Tax implications of receiving salary in crypto (31:56) Barriers for adoption of crypto payroll (34:03) Streaming as a payroll product (37:01) Accounting for payment streams (43:40) Accounting integrations to ERPs like Xero, Quickbooks and crypto accounting solutions like Bitwave, Cryptio (45:02) Megan’s favorite quote (48:26) 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 Franklin: Twitter: https://twitter.com/franklinpayroll Follow Megan Knab: Twitter:  https://twitter.com/knotmegan 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 you are contemplating to run your business on crypto rails, the framework for your bookkeeping is a combination of traditional and crypto native accounting softwares. Like any traditional business, you will need a traditional ERP solution softwares like Quickbooks, Xero, Oracle NetSuite being used as your Main Ledger.  And a specialized crypto accounting software to be used a Sub ledger - which would extract, process and feed in transactions from the blockchain to your Main ledger. If you are looking to scale your business using crypto, you need to start automating your crypto bookkeeping.  On Episode 40, I speak with Jacob Kobler, the CEO & Founder of Consola Finance.  Consola Finance allows you to convert the blockchain transactions from wallets, exchanges, and custodians into your accounting software to facilitate your reporting, audits and tax filings.  Topics Covered: Jacob’s background and how he got interested with blockchain (2:32) Common issues when not using a specialized crypto accounting software (5:10) Back office set-up for crypto bookkeeping (8:07) What is Consola Finance & features for on-chain accounting (10:51) Integrations with Quickbooks, Xero, Request Finance (13:53) How is Consola different to other competitors like Cryptio, Bitwave, Cryptoworth, Tres Finance, Integral (15:34) Joining Web3CFO club and network with high profile web3 CFOs (17:29) How to get onboarded on Consola, and minimum volume of crypto transactions (19:28) Impairment & different cost basis available (22:00) Fair value measurement and valuation using market price (24:04) Accounting for staking income (25:03) Challenges faced by Consola for adoption (27:29) Upcoming features & milestones for Consola (29:01) How to reach out to Jacob (30:34) 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 Consola Finance: Twitter: https://twitter.com/consolafinance Follow Jacob Kobler: Jacob Kobler: https://twitter.com/kobler_official 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 order to allow you to hire and retain the best talent to build your web3 company, having a sound token based compensation is crucial. Resorting yourself to manually distributing and sending tokens is a painful process, and using excel spreadsheets runs the risk of making transfer mistakes or missing payments.  Token-based compensation is a new and powerful form of incentive alignment and is inherently different from traditional stock options compensation.  To help us understand token based compensation, I spoke with Robin Ji, the CEO and co-founder of Liquifi.  Liquifi is a platform that allows you to automate token distributions and track vesting schedules, and will save yourself time in managing your crypto payroll operations. Topics covered; Robin’s story into blockchain and how Liquifi started (2:44) Differences between token based compensation and traditional equity (8:03) Designing a token compensation plan (11:34) Should all web3 projects have a token? (14:15) Should every DAO have a token? (18:00) Join web3CFOclub and network with high profile web3 CFOs (18:51) Benchmarks for token allocations for team, treasury & community (21:27) Token allocation strategy for the community (22:52) Token allocation strategy for the investors (25:17) What is Liquifi and overview of features (26:51) Onboarding process at Liquifi (29:23) Pricing structure of Liquifi (31:04) Difference between vesting & streaming tokens (32:17) How to manage token performance with token lock-ups (35:26) Main challenge for adoption is understanding token’s utility (37:10) Upcoming features/milestones of Liquifi (39:00) 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 Liquifi: Twitter: twitter.com/liquifi_finance Follow Robin Ji: Twitter: twitter.com/robindavidji 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/

Embracing cryptocurrencies into your business can be a daunting undertaking. 3 of the biggest hurdles to going corporate with crypto today are the following; (i) First payments and treasury managements (ii) Secondly tracking your wallets and transactions (iii) And finally exchanging crypto to fiat To discuss how you can start building your business on crypto and embrace the open financial system, I spoke to Thibaut Sahaghian, the CEO and founder of Multis. Multis allows organizations to manage their crypto treasury & cash flow, run crypto payroll, track spending across wallets, and have recently launched corporate cards to allow your business to off ramp and pay in USD within a few seconds. Topics covered; Thibaut’s story into blockchain and how Multis started (2:21) Mindset change required to move one's business on crypto (self-custody, logging transactions) (4:27) What is Multis and its main features (7:01) Importance of having a multisig wallet, and why Multis choose Gnosis Safe (9:48) AR & AP workflows , and the need for specialized web3 tools like Request Network (12:32) Payroll process and how Multis allows batching of salaries to save time & money (14:17) Off ramping with Multis corporate cards to exchange crypto and spend in USD (17:00) Application process to get a Multis crypto corporate card (18:18) Product market fit for Multis & their target audience in next 12 months (22:57) Challenges faced by Multis for adoption (24:30) How to upskill staff when building a business on crypto (26:32) Closing thoughts on the easiest step to transition a business on crypto (28:44) 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

One of the barriers for crypto adoption today lies in connecting the legacy financial system to the decentralized one. While crypto ramps exist to allow the economic value to flow from fiat money into cryptoassets, and vice versa, the process can be painstakingly long for the inexperienced user, as it involves using a crypto exchange. One company that has built a bridge between the banking system and blockchain without the need to use crypto exchanges is Monerium. Everyone understands how IBANs work, and using a blockchain IBAN, you are able to move funds from your bank account to your crypto wallet in a few seconds through the Monerium platform. To discuss how your wallet is now your bank account, I spoke to Gísli Kristjánsson, the co-founder and CTO of Monerium. Topics covered; How Gísli’s got interested with blockchain and founded Monerium (2:15) How money moves around the current banking system (6:38) What is Monerium and what are e-money (11:49) How to use Monerium to send money directly from bank account to crypto wallet (13:24) Minting process for e-money, and how it compares to stablecoins (19:32) Gas fees/transaction fees when using Monerium platform (22:46) How to get started with Monerium (24:38) Is Monerium a bank, and what happens to reserves if Monerium goes bankrupt (29:02) How to make e-money business profitable with negative interest rates in EU (32:39) Building on Monerium and using the open source API (using Request Network as example) (35:58) Challenges faced by Monerium for crypto adoption (40:35) Upcoming new features & partnerships (Request Finance, Superfluid) (43:12) Closing thoughts on Monerium’s infrastructure to change how the world works (47:47) 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 Episode 37 with Gísli Kristjánsson from Monerium , please visit https://theaccountantquits.com/episode-37-gisli-kristjansson-from-monerium-on-using-your-wallet-as-a-bank-account/ 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

If you have the intention to run your business on crypto, the traditional back office operations stack won’t make the cut. Your current processes around your invoicing and payments, accounting and reporting, tax compliance and treasury management requires an overhaul to remain compliant and mitigate the risks involved. The transition to having crypto on your balance sheet thus requires establishing a new workflow for running your operations and getting your team upskilled. To discuss how companies can redesign and thrive in the era of digital assets, I spoke to Pat White, the CEO and Founder of Bitwave. Bitwave empowers enterprises to streamline all of their back office crypto operations & remain compliant by providing a platform for their bookkeeping, treasury management, AR/AP tooling and DeFi support. Topics covered; Pat’s story with blockchain and founding Bitwave (2:46) Reasons why companies with different profiles are adopting crypto (6:39) Digital Assets Maturity Model (DAMM) by Bitwave (14:21) How to run your business on crypto in 30 days (17:11) What is Bitwave , and its accounting & tax sub ledgers (21:32) When should a company consider using Bitwave (27:04) Considerations to have in mind when transitioning from fiat payments to crypto payments on a compliance perspective (28:05) Where should AICPA publish more guidance on crypto accounting (33:53) Biggest black hole in crypto accounting is DeFi (L1 to L2, bridging, wrapping) (35:21) How to upskill accountants for crypto accounting (37:49) 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

The future of decentralized commerce will transform traditional commerce, as instead of being built upon siloed systems, it intends to be interoperable between its network participants. One of the foundations to achieve interoperability for commerce lies in tokenizing an invoice. In other words, having an invoice minted as an NFT provides an immutable document of ownership for commerce, resulting in a single source of truth to check the credit worthiness of its parties, thereby allowing invoice financing & factoring use cases, not only for large corporations, but also for retail needs. To discuss NFT invoicing, I spoke to Michael Revy, the founder of Bulla Network, an open source protocol to mint credit relationships and facilitate on-chain commerce. Topics covered; Michael’s story with blockchain and founding Bulla Network (2:15) The origin of a Bulla, being used by the Sumerian civilization (3:54) What is Bulla Network (5:28) What is an NFT invoice (7:01) Example of using invoice financing with an NFT invoice (9:29) What is Bulla Banker , and a walkthrough of the dapp for invoicing & payroll (13:28) How to prepay NFT payments, in the case of salary payments (16:23) Pain points with batch payments that Bulla solves (18:28) Use cases of NFT invoicing (25:55) Transferring transactions from Bulla Banker to accounting ERPs (29:31) Missing features in web2 accounting softwares that web3 could offer (30:35) Protocols working on credit reputation systems (33:03) Challenges to transition from web2 invoicing to web3 invoicing (34:31) Value proposition for DAOs with using Bulla (36:01) 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

Proof of stake (PoS) blockchains will form the foundation of a more inclusive and user-owned Internet. If institutional token holders are primed to enjoy the staking rewards embedded within these blockchains, either by acting as validators or delegators on the network, accounting for those rewards remains a headache. Reason being that there is currently limited guidance from the accounting standards, be it US GAAP or the IFRS, on revenue recognition for staking rewards. To help us better understand the accounting treatment on proof of stake networks, I spoke to Mackenzie Patel, a CPA and Senior Revenue Accountant at Figment, a validator on over 50 POS networks. Topics covered; Mackenzie’s story of how she got into web3 and started working at Figment (2:56) What is proof of stake (including rewards & governance) (5:26) Considerations when choosing a validator (6:56) How validators secure the network (7:45) DeFi staking v/s POS staking (10:12) Liquid staking and DeFi opportunities (11:40) What does Figment do (13:32) How to start staking with Figment (14:39) Revenue recognition of staking rewards for a validator under 5 step principle (17:32) Challenges when recognizing staking rewards under the accrual concept (25:51) Accounting rewards as token receivable (29:19) Grouping POS blockchains under a network family for recognizing revenue (31:58) How to trust data from block explorers in the absence of SOC report (33:30) How are auditors auditing POS blockchains data (36:58) Working part time at dOrg as a DAO Accountant, & contributing to DAOs (38:43) Prerequisites for web2 accountants to transition to web3 (41:09) Mackenzie’s message to FASB (45:05) 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

Crypto is subject to high volatility and even large market cap protocols are not immune to over 75% pricing drops. The majority of a web3 project or DAO’s treasury is typically held in their native governance token and turbulent market conditions amplifies the need for good treasury management. One that does not jeopardize the viability of the project and reassures the community on its financial health. To discuss operating in a bear market including survival, growing, hiring, and treasury management, On episode 33, I spoke to Kishan Shah, a former growth equity investor at Goldman Sachs & CFO at venture capital backed and publicly traded tech companies, now helping web3 companies grow faster and manage their treasury. Topics covered; Kishan’s story of how he got into web3 & the emerging primitives of DeFi & NFT (2:07) Web3 projects in a bear market (3:23) DAO treasury volume & DAO contributors analytics (6:49) Considerations for hiring a crypto CFO with minimal web3 experience (8:23) 3 key functions are business health, growth & treasury management (10:09) Capital allocation and what Kishan’s prescribes to web3 contributors (13:33) Financial reporting for DAOs (17:36) Treasury management and why it’s important for DAOs (20:06) How is web3 tooling different than web2 tooling (23:12) Back to basics for accounting (26:20) See Kishan's web3 articles on Mirror (Treasury management, DAO Financial Reporting, DAO Compensation) 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

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