With cryptocurrency becoming increasingly popular, small and large companies have started accepting various forms of crypto as payment. Currently, Bitcoin is the most popular cryptocurrency and is accepted by around 36% of small-to-medium-sized businesses.
According to new data, 46 million consumers say they’d like to pay for everything with cryptocurrency. That might become a reality sooner than later. As of 2021, an overwhelming number of businesses accept cryptocurrency, including:
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GameStop
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Gap
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JC Penney
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Dish Network
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AMC
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Quiznos
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4Chan
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The Internet Archive
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Pizza Hut
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Twitch
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Subway
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Burger King
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KFC
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AT&T
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Microsoft
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Wikipedia
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And more
For most consumers, using crypto is about remaining anonymous. For others, it’s an investment. For a handful, it’s both.
Chances are, some of your customers would love the chance to pay for your goods or services with Bitcoin or another popular cryptocurrency. However, accepting crypto can complicate things if you’re not well organized.
If you choose to accept crypto, you’re going to need the following organizational tools.
1. Financial Organization
Financial organization is the foundation for every kind of success you could achieve. To start accepting crypto, you need to have your standard finances in order. Accepting crypto while you’re already disorganized will only add to the chaos.
To stay organized, many businesses use platforms that automate workflows and keep teams connected. For years, Salesforce has been a leader in the industry and has an extended number of CRM services with a product called FinancialForce.
FinancialForce unifies data across your entire enterprise, giving you visibility into all of your systems – most importantly, your sales and finances.
Other CRM solutions you can use include HubSpot Sales, Pipedrive, and Insightly. All of these options will provide the visibility you need to stay organized. If you’re going to start accepting crypto, you’ll need as much visibility as you can get.
2. Financial Tracking Software Built for Crypto
It’s one thing to know you must pay capital gains taxes on any crypto you hold in your business bank account, but tracking your crypto gains requires special software. It’s not easy to track your gains manually.
There are plenty of crypto portfolio trackers you can get, which include Pionex, Kubera, Sharesight, Delta, and more. Research each one before committing to a tracker to make sure it meets all of your needs.
3. An Automatic Value Converter
One of the biggest problems with accepting crypto is the value fluctuation. If you manually set your prices in Bitcoin today, you might lose money on your sales tomorrow or even the following week.
You can stay ahead of the game by using software that automatically converts your crypto prices on your website to reflect a set dollar value. For example, you can set the price of an item as $100 USD, and the application will change the displayed Bitcoin price as the value of Bitcoin fluctuates.
Check with your shopping cart application to see if there’s a plugin you can use to keep crypto prices current on your website. This is the only way to ensure you always get the correct value for your goods and services.
4. Immediate Digital Conversion After Sale
The longer you hold onto any cryptocurrency, the more taxes you’re likely to owe. To avoid increasing your tax bill, you need to convert your crypto as quickly as possible. The ideal solution is to convert crypto to currency immediately after receiving a payment. This way, your tax liability will be more predictable.
Most people use Coinbase Exchange to convert Bitcoin into dollars. However, be prepared to pay a small fee no matter what application you use. You can expect to pay between 1.49% to 2% per transaction.
To avoid paying unnecessary fees, you might want to convert and transfer your funds once per week rather than every day.
5. An Accountant Who Knows Investments
Since cryptocurrency is considered an investment, you need an accountant who understands investments. You’ll need to pay capital gains taxes on every bit of crypto you receive. If your crypto gains value while you’re holding it, you’ll owe for gains.
While crypto is somewhat anonymous, you can’t escape paying taxes when you’re accepting crypto payments in exchange for goods and services. The fact that you’re accepting payments makes your transactions no longer anonymous. Besides, it’s never a good idea to avoid paying taxes because you can get hit with penalties and jail time for tax evasion.
Accepting Cryptocurrency is a Wise Move
The future of payments is certainly digital. Although many people argue over how long Bitcoin and other cryptos will hold up, it’s hard to see crypto disappearing for good.
As long as crypto exists, people will want to use it to pay for goods and services. If you don’t accept crypto, you’re leaving money on the table. However, once you start accepting crypto, make sure your business stays financially organized to remain in compliance with various crypto regulations.