Businesses' excitement about digital assets has been reinvigorated this past year, with new regulatory frameworks such as the GENIUS Act accelerating crypto adoption into mainstream finance. Simply put, crypto is reshaping payment methods, allowing businesses to speed up settlements and reach a new, potentially global user base. Just this month,
We have also seen behemoths like Microsoft accept crypto payments for some of its services, and PayPal, which has integrated cryptocurrency into its platform, allowing its users to buy and sell digital currencies and ultimately wade into digital asset waters. Businesses are now operating more extensively in crypto. The idea of going to a coffee shop and paying with digital assets is no longer a mere vision of the future but something that is quickly becoming possible.
But operating in crypto has its own set of requirements, including vastly different accounting needs, and businesses need to be aware they won't be able to simply force crypto into traditional accounting frameworks.
Traditional accounting is out of its depth in the crypto-sphere
The reality is that digital assets require a digital-first approach to accounting. Companies that have over 100 crypto transactions per year or deal with two or more crypto assets will face unsustainable accounting headaches, and will likely struggle to close their books.
Digital assets valuation can be complex, sometimes changing at the blink of an eye, and this can impact businesses' financial statements, reporting periods and ultimately revenue recognition. Simply having a finance team with a traditional accounting skill set will not suffice in this new phase of the digital economy. Teams need tools and solutions that support the speed and nuances of digital asset accounting.
In addition, fragmentation becomes a challenge as aggregating, verifying and reconciling transactions across multiple wallets and exchanges can be labor-intensive. For businesses attempting to tackle this challenge manually, there is likely to be a long process involved, as spreadsheets tend to be error-prone when dealing with something as complex as crypto. To add further fuel to the fire, revenue recognition is not straightforward, as businesses must calculate crypto payment revenue based on the fair market value at the time of receipt, which can fluctuate.
Proof of ownership can also present difficulties. The very ethos of crypto's decentralization introduces a challenge for auditors to verify and certify wallet ownership. Unlike traditional banking, there is no single central authority that can verify wallet ownership, which means finance teams must conduct their own due diligence.
Another factor to consider is regulatory evolution. The laws and guidance for handling crypto payments are not set in stone and remain fluid. If the speed of crypto transactions alone didn't already take a toll on business processes, combining the need to remain agile and respond to regulatory changes when it comes to reporting throws an additional wrench into the mix.
Overall, traditional accounting practices and frameworks are not built to handle the technical data and specific crypto distinctions that come with digital asset payments.
Turning roadblocks into rewards
Digital assets require a digital ledger that is built around the way crypto moves, functions and exists. To save time and money when closing their books, businesses need to move toward an accounting system that is crypto-native. And as more businesses operate in the crypto ecosystem, rebuilding accounting workflows to be compliant, efficient and crypto-first will be critical to unlocking scale. Accepting crypto payments presents many potential opportunities for businesses, but being able to handle those payments without ballooning resources is a challenge that must be solved early.
But it's not just about avoiding problems. Adapting now also allows businesses to reap significant rewards. With the right technology and processes in place, crypto accounting can actually be even easier and more efficient than traditional accounting is today. Once a digital ledger is established and plugged into the crypto ecosystem, accounting can be largely automated. And for businesses operating at high volume in crypto transactions, solving the basic crypto accounting problem will also unlock major opportunities to optimize financial strategy — such as illuminating tax loss harvesting possibilities, discovering opportunities to rebalance exposures, or leveraging insights for intelligent cash flow and treasury management.
A new dawn for accounting
In 2026, many more businesses are likely to enter the era of everyday crypto, taking important steps to evolve our financial system and create a more streamlined way to buy, sell and move money. Bridging the gap between today's accounting and tomorrow's payments is crucial to meeting customer needs and tapping the many opportunities for growth and efficiency that digital assets present.
This year we've seen major signals that digital assets have reached an inflection point. Crypto is well and truly entering the mainstream. Regulators are preparing, consumers are preparing – now it's time that accounting prepares too.
