chriso on Nostr: If I was to implement Bitcoin into a business I would do the following: Create an ...

If I was to implement Bitcoin into a business I would do the following:
Create an account (similar to the checking account) in my accounting software so when I sold an item for bitcoin, I’d record the selling price and corresponding revenue. When entering the sale, I’d notate #sats received (date will be automatically done as long as recording entries real time or daily). This will :
1- recognize the revenue of selling the item
2-give you the cost basis of the sats and the date you received them.

Then when you need to convert to fiat, you’d reduce the bitcoin account based on the #sats sold, recognize a gain or loss on the conversion, and receive the cash into you’re bank account.

In this scenario, all income has been reported and you have cost basis documented. If you could find vendors that take Bitcoin, you could buy inventory with the Bitcoin and achieve the full circular economy that we hope to one day see. In that scenario, you’d recognize the cost of the inventory or other expense item and would have a gain or loss on that conversion as well.

If you’re not running a computerized accounting software package, this can be done with a pen and paper. My guess is no one would accept Bitcoin if they didn’t run their company books on a computer system of some sort.

If I was doing lots of small transactions, you might do a bulk entry (total sats and total fiat sold
Value) at the end of the day vs entering each item. In that scenario I’d be looking to implement a BTCPayserver instance to use in collecting activity. (For instance a coffee shop or snowcone stand)

My thoughts would be all bitcoin transactions will be slow for anyone in the beginning and scale up as interest increased.

Is this anything close to what you’re asking? If not, and me specific questions and I’ll answer. I’ve given this a lot of thought but it’s the first time I’ve put it down for others to read.
#bitcoinbusiness