FinOps Stack for Crypto Companies: Revolutionizing Crypto Bookkeeping & Treasury Management

Apr 3, 2023

Crypto treasury management with Multis

The Emerging Need for Crypto-Focused FinOps

Each day, an increasing amount of companies receive funds in crypto or accept crypto payments. Virtual currencies are becoming a new component in managing business finances. In order to support them, web3 enthusiasts have been building the required and suited tooling.

Setting up an efficient financial operations stack, particularly one that incorporates effective crypto bookkeeping and crypto accounting, has been a nightmare for many crypto companies...Fortunately, it's now easier than ever to get your FinOps up and running across traditional currencies and cryptocurrencies.

On top of what "legacy companies" require, Web3 organizations and DAO's have additional expectations:

  • Safe custody of digital assets

  • Centralized tracking of all assets

  • Exchanging between digital assets and USD

  • Maintaining auditable financials

In the past, the financial stack of web3 organizations consisted of connecting 5-6 independent blocks in order to operate. That resulted in scattered data and difficulty to centralize information from all tools. Additionally, they were mutually dependent, needed to be operational at all times.

Fortunately, in the midst of the 2022 crypto winter, companies in the space have been building the necessary infrastructure to support the wants and needs that are specific to organizations that hold crypto treasury or generate revenue in crypto.

Here's a list of the best financial software tools we chose in the web3 space.

How Multis Facilitates Efficient Exchange & Custody

Even today, the most crypto-advanced companies conduct some of their business in fiat currencies and need a reliable means of exchange between both forms of currency.

The most common way of doing that is by dealing with centralized exchanges such as Coinbase — however, the fall of FTX is having users question the security of their funds in centralized wallets.

Centralized exchanges have been great for retail users. However, for businesses, setting up a Coinbase Pro wallet can take up to 3 months. Business owners often don't have the time for that type of setup.

Multis solves the issue with 2 pillars:

  • A self-custodial Safe wallet for your digital currency

  • An in-app exchange to convert seamlessly and instantly between crypto and USD

Crypto Bookkeeping & Accounting Made Easy with Multis

Blockchains are by definition a public ledger that shows the history of all transactions. However, there is no direct link between the public ledger of blockchain and the balance sheet of crypto companies — an accountant's nightmare.

In the past few years, the web3 space expressed the need for software that seamlessly translates on-chain crypto activity into auditable records, providing a robust solution for crypto bookkeeping/accounting and tax-related purposes.

Multis addresses this need for efficient crypto bookkeeping and accounting in several ways:

  • Detailed transaction log with necessary metadata

  • Categorization rules to automate payment classification

  • Connecting with external bank accounts with Plaid

  • Tracking of other payments wallets

  • Quickbooks integration

Payroll

People working in web3 companies have long contemplated the alternative of being paid in cryptocurrencies. That adds on to the fact that instant payroll payments have become the standard in the industry.

3 options can be considered:

Equity

Equity investment has always been a bumpy road to navigate. Historically a huge pile of paperwork, new software solutions have made it easier to record cap table ownership and vesting schedules.

In web3, many companies choose to issue cryptocurrency tokens instead of stocks, which can then be traded on a typical exchange.

Regardless of the choice of currency issuance, web3 companies need a provider to compliantly manage and distribute the tokens/stocks.

4 options can be considered:

  • Pulley for a smart cap table

  • Easop for equity management with international teams

  • Liquifi for a cap table with tax compliant token vesting

  • Fairmint to include your community in your cap table

Navigating Insurance for Crypto Companies

Crypto companies are considered as inherently more risky by legacy service providers. With banks, the onboarding processes are longer, and insurance brokers aren't yet very comfortable with dealing with this new asset class.

The discomfort of traditional insurance providers with web3 businesses has been an opportunity for new providers to design new commercial policies and be able to cater to tailored solutions that support the risk of such businesses.

Recommended — Vouch

Conclusion

In conclusion, building a financial operations stack for web3 companies that support secure and effective crypto bookkeeping, crypto accounting, and crypto treasury management has never been easier. By using Multis and plugging in 1-2 other blocks, you can have a fully functional and smart streamlining of your operations.

Interested in the future of corporate spend management? You can open an account in less than ten minutes here and join 200+ leading companies using our product!