Umar Mallam Hassam public
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Welcome to The Accountant Quits podcast, an idea born from an inquisitive attempt to find one’s calling. I’m Umar and I will be your host on this series where we look into the impact of blockchain in accounting. From topics around the accounting treatment of cryptocurrencies, the new framework of triple entry accounting, the challenges at hand for audit and tax, and many more, we will look into how the profession of accounting is evolving and how accountants should prepare themselves for the ...
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There is no current standard framework on how transactions within DAOs should be structured and accounted for. Transactions on the blockchain or so-called block explorers are cash-based and do not comply with accrual-based accounting. Today many companies having on-chain transactions use crypto sub-ledgers, but the essence of DAOs is to reduce the …
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In its early days, businesses used crypto mainly for trading. However, more use cases have emerged in recent times. Making payments with crypto as we all know is lightning fast, but businesses utilizing self-custodial wallets need a full-fledged infrastructure with advanced customization. For example, managing user permissions and roles, creating a…
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Can crypto payments accentuate the trend for a globally distributed workforce? More and more people in emerging markets such as freelancers are using crypto to get paid, and having crypto as a payment option enables people to get employed anywhere in the world. So if you as an employer want to have the best talent globally, using crypto as a means …
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The deadline for new crypto regulation in the EU, termed the Market in Crypto-Assets (MiCA) is fast approaching, and many are wondering - What exactly does MiCA entail, and how can you prepare for it? For starters, MiCA applies to a broad range of entities providing services related to crypto, including exchanges, custodians, wallet providers, brok…
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A recurring theme among the CFOs I've interviewed is their common starting point: many began their careers at top accounting firms, such as the Big4. And the benefits of working for them are not insignificant - you are often surrounded by the brightest minds in accounting, work with some of the biggest clients, and your experience commands respect.…
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Blockchain technology is open source right, but to advance the development of accounting standards for digital assets, we need accounting bodies to be more open for collaboration in these changing times. This revolution cannot take place in an ivory tower. A group of accountants at Propeller Industries have answered the call, and are pioneering a n…
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The tokenomics is the catch-all of the elements that make a particular crypto project particularly valuable and interesting to investors. That includes everything from its initial minting process, the token’s supply, and what utility it has. Understanding tokenomics is crucial for making informed investment decisions. A project with well-designed i…
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Digital assets and their underlying blockchain technology are an evolving area, and as such accountants frequently face the daunting challenge of scrutinizing existing accounting standards to derive the most reasonable interpretation. Innovation outpaces the speed of accounting regulation, leaving standard-setting bodies like the FASB for US GAAP o…
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COVID has changed the game for companies hiring internationally. Previously, if an employer didn’t have an established business, or a legal entity in the jurisdiction where the foreign worker lived, often their only option would be to hire the worker as an independent contractor. Companies couldn’t hire full-time employees and were thus unable to g…
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If you’ve previously worked as an accountant or auditor at a Big4 or other accounting firm, you’ve been through a rigorous & highly sought-after working methodology and have a huge boost on your resume. You’re now equipped to get your foot in the door of most firms looking to hire a Financial Controller, Head of Finance, or even a CFO. Being a prod…
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A finance technology stack is the set of tools that a business uses to streamline and optimize its financial and accounting processes. These tools and software typically fall into categories like payments, payroll, spend & expense management, accounting & reporting, financial planning, and analysis. Until now, web3 teams have had a fragmented finan…
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Blockchain at its core allows the transfer of value without an intermediary and offers an immutable ledger that provides real-time access to financial data while AI-based applications can be used to analyze financial data, and automate repetitive tasks like data entry, A powerful combo for accounting. We’re on the brink of a fundamental transformat…
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Anyone who decides to build a project in web3 involuntarily accepts to have to surmount heaps of legal challenges, to be legally compliant. Many web3 businesses are borderless and this places a big regulatory burden, especially for those in their very early days. Whether you are a centralized or decentralized project in web3, planning to issue toke…
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While there is a lot of guidance and literature on Treasury Management in traditional finance, in web3, a lot of those concepts don’t apply. Managing treasury fiat currencies in traditional finance largely involves managing banking partners whereas with cryptocurrencies, that involves managing your wallet addresses in the event you’re using self-cu…
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Choosing accounting as a career path seems to be losing some of its prestige in recent years. Technologies like AI and blockchain will not take the accountants’ jobs but rather, it’s those accountants who have upskilled themselves on blockchain who will. So rather than being seen as a threat, many accountants are evolving with blockchain. On Episod…
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The 2 words on every crypto accountant’s lips these days are fair value. Until now, crypto assets had to be measured at initial cost and could not be revalued at its market price. To make matters worse for investors, they were also subject to an annual impairment review, and any subsequent gains in the value of the asset could only be realized at t…
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Are you as a company contemplating using crypto assets in your business? Be it for investment purposes or rather in your daily operations? The 1st advice irrespective of the jurisdiction you’re in, is to speak with a qualified tax advisor. Once you understand the crypto inflows and outflows, you can also determine the character of income of your cr…
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An external auditor is appointed to provide an independent examination of the financial statements to ensure they provide a true and fair view. And in return provide the confidence to stakeholders that management is doing their job well. Auditors proceed by testing the internal controls and performing substantive tests. What substantive tests mean …
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The Crypto Accounting Academy is a 6-week course, ​​brought to you by experts in the web3 industry, to give you the practical knowledge of running a business on crypto. After the course, you will be equipped with the knowledge to be hired at a web3 company as an Accountant, Financial Controller and/or CFO. Learning crypto accounting by yourself inv…
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If a business has a subscription pricing model and wants to accept both fiat & crypto as payments, that would mean using a combination of fiat and crypto payment gateways. For example, Stripe works for fiat, and Coinbase Commerce works for crypto payments. The issue here is that the merchant has to manually reconcile payments flowing through these …
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The theme of this episode is tracking DeFi transactions, and providing the CFO managing their crypto treasury with how to generate a historical report of their DeFi positions, with their realized & unrealized gains/losses, interest income & losses & rewards earned. If you’re not using a dedicated crypto tool, and having to manually retrieve the dat…
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While Safe (previously Gnosis Safe) has become the gold standard for self-custodial wallets, anyone listening who has previously used Safe, which requires the approval of more than one user for transaction execution, would often say that the user experience is sub-optimal. Some of the examples of the recurring pain points using a Safe alone for app…
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This is the 2nd episode of a new series I started called ‘Becoming a Web3 CFO’ - where I dive into the inspiring stories of accounting & finance professionals who transitioned from traditional finance to web3. In Episode 48, I speak with Jozef Vogel, the newly appointed VP of Finance and Operations at Ether.fi, a decentralized non-custodial ETH sta…
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The ‘Becoming a Web3CFO’ Series, is where I dive into the inspiring stories of accounting & finance professionals who transitioned from TradFi to web3. In this series, we explore their unique experiences, challenges, motivations, and career advice. The reason I started this podcast was to inspire and prepare accountants for blockchain. If people wi…
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Many web3 projects have a significant portion of their treasury in crypto, and paying for expenses like travel bills, SaaS tools subscriptions can be a headache as offramping often comes with friction points. Having spoken to a few founders in web3 startups & DAOs, often times these teams would rather pay for such expenses using their personal acco…
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Whenever I speak to people who are currently working or have worked in large accounting, investment and consulting firms, there is a recurring pattern I hear. The distribution of wealth is heavily skewed towards those in positions of power and authority, that is the partners of these firms Besides the disproportionate gap in remuneration, the peopl…
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If you’ve never listened to this podcast, this will be a good intro on the impact of blockchain in accounting. After recording 43 episodes, I thought it’s high time that I revisit some of the content and share the best best bits on what’s this podcast all about - helping you become a web3 accountant. You know even if the name of this show is called…
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Even if it’s relatively straightforward to export transactions from block explorers, how do you know for a fact that the data is complete and accurate? Block explorers have not been designed for accounting purposes, and turning the complexities of on-chain transactions into an enterprise grade data for your accounting is quite a challenge. Cryptowo…
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The autopay function is prevalent in TradFi - think about all instances where payments are automated, like your subscriptions , loan repayment, salaries, utilities payment, credit card repayment. Having to manually approve such recurring payments would be a headache for you. Today in the web3 space, projects having a subscription pricing model have…
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If you’re an employee receiving your net salary at the end of the month, there is a series of financial operations that your employer must address. Starting with your gross salary, there is a string of deductions like taxation, pensions, social security, medical insurance before arriving at your net salary - the actual funds that get credited in yo…
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If you are contemplating to run your business on crypto rails, the framework for your bookkeeping is a combination of traditional and crypto native accounting softwares. Like any traditional business, you will need a traditional ERP solution softwares like Quickbooks, Xero, Oracle NetSuite being used as your Main Ledger. And a specialized crypto ac…
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In order to allow you to hire and retain the best talent to build your web3 company, having a sound token based compensation is crucial. Resorting yourself to manually distributing and sending tokens is a painful process, and using excel spreadsheets runs the risk of making transfer mistakes or missing payments. Token-based compensation is a new an…
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Embracing cryptocurrencies into your business can be a daunting undertaking. 3 of the biggest hurdles to going corporate with crypto today are the following; (i) First payments and treasury managements (ii) Secondly tracking your wallets and transactions (iii) And finally exchanging crypto to fiat To discuss how you can start building your business…
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One of the barriers for crypto adoption today lies in connecting the legacy financial system to the decentralized one. While crypto ramps exist to allow the economic value to flow from fiat money into cryptoassets, and vice versa, the process can be painstakingly long for the inexperienced user, as it involves using a crypto exchange. One company t…
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If you have the intention to run your business on crypto, the traditional back office operations stack won’t make the cut. Your current processes around your invoicing and payments, accounting and reporting, tax compliance and treasury management requires an overhaul to remain compliant and mitigate the risks involved. The transition to having cryp…
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The future of decentralized commerce will transform traditional commerce, as instead of being built upon siloed systems, it intends to be interoperable between its network participants. One of the foundations to achieve interoperability for commerce lies in tokenizing an invoice. In other words, having an invoice minted as an NFT provides an immuta…
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Proof of stake (PoS) blockchains will form the foundation of a more inclusive and user-owned Internet. If institutional token holders are primed to enjoy the staking rewards embedded within these blockchains, either by acting as validators or delegators on the network, accounting for those rewards remains a headache. Reason being that there is curr…
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Crypto is subject to high volatility and even large market cap protocols are not immune to over 75% pricing drops. The majority of a web3 project or DAO’s treasury is typically held in their native governance token and turbulent market conditions amplifies the need for good treasury management. One that does not jeopardize the viability of the proj…
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The adoption of cryptocurrencies also lies in the ability of that data to be easily extracted into any accounting software from the different crypto wallets & exchanges. As of today, the legacy accounting softwares do not integrate with cryptocurrencies for pricing, and accounting for crypto involves some workaround. One company which has for missi…
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Smart contracts allow the transfer of digital assets automatically without the need for manual periodic transactions, in the form of a payment stream. Payment stream you ask? Allow me to break it down for you through a simple example. As an employee/freelancer, you are familiar with receiving your salary/fees in the form of a lump sum transfer. Wha…
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We’re currently at a tipping point. The traditional CFO with a traditional finance background may soon become obsolete , and be replaced by the progressive CFO embracing the possibilities of DeFi. But there are no universities and there is no universal playbook offering a curriculum on how to be a Web3 CFO. To get there, it involves one being crypt…
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The legal nature of DAOs is a gray zone and there is no playbook for creating a legally compliant DAO yet, but accounting can nevertheless be done right. The accounting equation is universal and accounting principles are timeless. The only difference now is the addition of blockchain technology, and that now transactions for the DAO reside onchain.…
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The growth of financial instruments powered by DeFi is inevitable. But if the time for DeFi has come, the accounting bodies are still in their starting block (no pun intended). One firm that has gained traction and made a name for itself as the leading crypto accounting firm in the UK, is Myna Accountants. & Its founder Joe David, has been devoting…
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Blockchain has democratized access to financial services by removing the middleman, and fuelled a new movement with Decentralized Finance, better known as DeFi. DeFi enables anyone in the world to have access to financial services on the internet, and uses smart contracts that replaces the intermediary such as a bank. But no intermediary means 2 th…
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If accounting standards are still playing catch up with digital assets, bookkeeping can nonetheless be done right. But tracking and extracting onchain data for accounting is a tedious task - it’s time consuming and bridging that data to an accounting software can be daunting for accountants. One company that wants to automate digital assets bookkee…
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The onset of web3 being decentralized is fueling a paradigm shift in how work is organized on the internet, and DAOs, short for decentralized autonomous organizations, is the vehicle driving the change. With DAOs being internet-native entities with no central management, where people are incentivized to work on common shared goals, we need new tool…
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Ever since I started this podcast, I’ve always been looking for people with accounting backgrounds who have successfully steered their career into crypto. For episode 24, I could not be more excited to have Will White, a Chartered Accountant, who completed his ICAEW course and has had a unique career trajectory. Will started working at PWC where he…
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The very nature of cryptocurrencies is that it’s peer to peer, and there is no need for an intermediary to make payments. But to streamline and facilitate the adoption of crypto payments in a compliant way, there is the need for a whole range of financial applications to be built around. One company which has been building in this space and garneri…
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Crypto Assets are challenging the accounting bodies and standard setters around the world, since they vary greatly to the traditional assets like equities, bonds, commodities and estimating their fair value is no straightforward task. They are mostly unregulated, their markets never close and many can’t be turned into fiat currency. One company who…
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Right now is that time of the year when the taxman comes knocking on the door. If you’re residing in a country where crypto tax laws are not, let’s say, generous, having a tax strategy is just as important as an investment strategy. If you’re like most people, you will agree that crypto tax filing is a painful exercise. You have to compile your tra…
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