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L
Libertad Group
April 4, 2022
Solved

Crypto records

  • April 4, 2022
  • 1 reply
  • 25 views

Hi,
I'm finalising my records for a single member LLC and I have some crypto transactions that just don't quite seem right that I wanted to ask the community about. 

Basically I put owners equity in to the LLC in the form of crypto, then later withdrew the same crypto back to my personal account. I've entered this in Quickbooks as a current asset using the value of the coins at the date of deposit and withdrawal. And while this seems like the correct way to do it, I now have some accounts that are $ positive with no coins, and others that are $ negative also with no coins - obviously due to the volatile change in value of crypto. Is this correct? And if so, how should I write them off/zero them out going forward?

Best answer by BigRedConsulting

This is an accounting question where the answer probably depends heavily on your case. I don't think anyone here can know the answer for sure.

 

The question seems, essentially, to be about investments - which QuickBooks doesn't track. I suspect that, there needs to be some sort of transaction that represents the profit of the loss from the sale of the currency, but how you record it depends on if this is business income or personal income (or loss.)

 

1 reply

BigRedConsulting
BigRedConsultingAnswer
Level 15
May 2, 2022

This is an accounting question where the answer probably depends heavily on your case. I don't think anyone here can know the answer for sure.

 

The question seems, essentially, to be about investments - which QuickBooks doesn't track. I suspect that, there needs to be some sort of transaction that represents the profit of the loss from the sale of the currency, but how you record it depends on if this is business income or personal income (or loss.)

 

L
Libertad GroupAuthor
May 2, 2022

Thanks for your reply. What I ended up missing, and was very obvious in hindsight, was simply recording the gain or loss due to the change in value. All sorted now though! Cheers.

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