Crypto Accounting and Reconciliation for Merchants

Accepting cryptocurrency payments introduces new considerations for your accounting workflow. This guide covers best practices for tracking, reconciling, and reporting crypto transactions.

Record-Keeping Fundamentals

For each payment, record:

FieldDescriptionExample

|-------|-------------|---------|

Payment IDUnique identifierpay_abc123 External IDYour order referenceorder_12345 Gross AmountAmount before fees100.00 USDT Fee AmountProcessing fees1.30 USDT Net AmountAmount after fees98.70 USDT TX HashBlockchain transactiona1b2c3... TimestampConfirmation time2025-01-15 10:30:00 UTC

Daily Reconciliation

Step 1: Export Transactions

Download your daily transaction report from the dashboard:

Go to Payments > Export

Select date range

Choose CSV or JSON format

Download report

Step 2: Match with Orders

Cross-reference external_id with your order system:

SELECT
  o.order_id,
  o.total,
  p.amount,
  p.net_amount,
  p.status
FROM orders o
LEFT JOIN payments p ON o.order_id = p.external_id
WHERE p.created_at >= '2025-01-15'

Step 3: Verify Totals

Ensure totals match:

Sum of gross amounts

Sum of fees

Sum of net amounts (what you receive)

Fee Tracking

Track fees separately for accurate reporting:

Processing Fees (Expense Account)
├── January: $45.30
├── February: $52.10
└── March: $61.20

Access fee details via API:

GET /api/v1/merchant/payments?from=2025-01-01&to=2025-01-31

Response includes fee breakdown:

{
  "payments": [...],
  "summary": {
    "total_gross": 5000.00,
    "total_fees": 65.00,
    "total_net": 4935.00,
    "count": 150
  }
}

Tax Considerations

Disclaimer: This is general guidance. Consult a tax professional for your jurisdiction.

Common Approaches

Mark-to-Market: Record at USD value when received

FIFO: Track each receipt for capital gains (if holding)

Immediate Conversion: Convert to fiat and record fiat value

What to Track

Date and time of receipt

USD equivalent at time of receipt

Conversion rate if applicable

Any exchange fees

Reporting

Monthly Reports

Generate monthly summaries for:

Total payment volume

Average transaction size

Fee totals

Successful vs. failed payments

Quarterly Review

Compare crypto vs. traditional payment volumes

Analyze customer payment preferences

Review fee optimization opportunities

Webhook Data for Accounting

Use webhook payloads to automate accounting entries:

app.post('/webhook', async (req, res) => {
  const { event, payment } = req.body;
  if (event === 'payment.confirmed') {
    await createAccountingEntry({
      date: new Date(payment.confirmed_at),
      gross: payment.amount,
      fees: payment.fee_amount,
      net: payment.net_amount,
      reference: payment.external_id,
      tx_hash: payment.tx_hash
    });
  }
  res.status(200).send('OK');
});

Settlement and Withdrawals

Pulse2Pay settles to your specified wallet. Track:

Settlement date

Settlement amount

Network fees (if any)

Receiving address

Best Practices

Automate data capture: Use webhooks to log transactions

Reconcile daily: Catch discrepancies early

Separate fee tracking: Clear expense categorization

Document everything: TX hashes provide audit trails

Regular backups: Export data periodically

Related Resources

Pricing & Fees Explained

API Reference

Dashboard Guide