Cryptocurrency is a type of currency available in the form of digital or virtual and relies on encryption for the security of transactions. It exists in different forms. Some of the known cryptocurrencies are Bitcoin, Ethereum, and Ripple. Accountants will get advantage from understanding the fundamentals of cryptocurrency and they will get an idea of about what answer they will give to clients asking about it.
Other blockchain technologies may have a superior cause on accounting in the long term, but cryptocurrencies are making the big splash right now. In the crypto-market 2018, the number of your clients who use or invest in alternative currencies is only going to grow.
That means that accountants and tax pros with knowledge on how cryptocurrency affects their clients’ taxes and finances in common will become more and more required after. If you’re not already well-known with how cryptocurrencies can affect your clients, now is a right time to start learning.
Accounting clients might accept cryptocurrency for payment without being exposed to the instability of the asset. For example, trade accounts can immediately convert cryptocurrency payments into dollars so businesses are able to accept Bitcoin, for example, without getting paid in Bitcoin.