How one firm helps crypto companies find accounting solutions
Accurate accounting in the crypto industry is crucial for tax purposes.
June 12, 2024
As the world of finance evolves, integrating traditional finance (TradFi) with crypto presents unique challenges and opportunities. At the forefront of this transformation are companies like Formidium, which provides accounting and other solutions to firms in the digital asset sector. In a recent discussion, Roundtable anchor Rob Nelson delved into these complexities with Harsha Patwardhan, executive vice president of Formidium.
Accurate accounting in the crypto space is crucial for tax purposes. "We have a saying at Formidium, you can never do accounting that is less than a hundred percent," Patwardhan told TheStreet Crypto.
Patwardhan recommended that Formidium's products be used by either accountants or investors. However, Nelson inquired about the integration of cryptocurrency with traditional financial assets. "Does it merge it together with your TradFi stuff?"
"Absolutely," Patwardhan replied, explaining that their system supports a unified accounting approach. "It can do crypto, merge it with the TradFi stuff." This integration caters to investors with a diverse portfolio, including real estate, equities, bonds, and crypto, making accounting and taxes more efficient.
The discussion also shifted to the usage of Formidium's solutions among content creators and those involved in tokenization. Nelson asked whether the platform could handle revenue from tokenization and advertising.
"It fits everything," Patwardhan said. He added that Formidium already serves non-fungible token or NFT issuers – tracking royalties, transfers, and digital assets. "We are able to track the tokens to make sure that when they are transferred from investor to investor," he said. "We have a record of all of this."