Recording payment in various cryptocurrencies and tracking the gains/losses (short term and long term) from liquidation into USD or other CryptoCurren
I'm struggling to figure out the following.
Our company is paid for services in a number of different cryptocurrencies (not just BTC or ETH, but more obscure AltCoins). We know that we need to account for the receipt of these payments as income. Then, as we are holding these cryptocurrencies for a while, they need to be assets on our books with a certain cost basis/original value (ie. the value on the day we received them as income). Then, over time, we may sell certain amounts of them - either for USD or into another CryptoCurrency such as BTC. Both are taxable events where we'll have realized a gain/loss versus the original cost basis. The USD will obviously be recorded into our checking account. In case we sell into BTC, we'll have to again record it as asset with a cost basis on that date, and in the future we may again end up selling portions of it into USD. Also please note that we will sell in tranches over time, for example we may receive 1000 units of Crypto-A on 1/1, then sell 100 of those for BTC on 2/1, sell 50 of those for USD on 3/1, sell another 50 of those for BTC on 4/1, sell some of the BTC we received for USD on 5/1 and so on.
ANY advice on how to set up accounts and track these properly would be SO MUCH appreciated. THANK YOU!!