#45 - What Does Bitcoin Mean For Accountants?

Today, Paul and Dave discuss the role of accountants in bitcoin discussions. Warrick Pleash explains how bitcoin works and we see what can happen when millennials apply for jobs.

‘From The Trenches’ – Real Life in the Accounting Industry presented by Paul Meissner and David Boyar.

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Show Notes

Snippets/Audio Grabs:

·       We had wondered how the Roadshow would go without add-ons but were happy to be proven wrong.

·       Career moves of high-profile people in the industry are big deals and signs of a maturing industry.

 

01:00 Best on Ground: 

David

''That London Thing" isn’t just for big firms any more.

https://twitter.com/SMART_SBS/status/960308396518907906

Smaller firm, Smart Business Solutions, pioneer secondment swap by partnering with like-minded UK firm.

 

Paul

Intuit: A Giant Story

https://www.youtube.com/watch?v=ktafrbsKeZw

Intuit used an animated video to market an accounting system to the masses via a Super Bowl ad.

 

A Millennial Job Interview

https://vimeo.com/239050403

Satirical look at the expectation gap between millennials and older employers.

 

08:14 Worst on Ground:

David

Health professionals, are you making the most of your accountant?

https://business.nab.com.au/health-professionals-making-accountant-27568/

When this ad was shared on Facebook, it sparked much criticism. Was it justified?

 

Paul

NAB to allow payments through Xero

http://www.afr.com/business/banking-and-finance/nab-to-allow-payments-through-xero-20180131-h0r2wz

NAB promises efficiency gain from Xero integration

https://www.theaustralian.com.au/business/technology/nab-promises-efficiency-gain-from-xero-integration/news-story/c5e62d52a825e2250ceadb7246cbc46c

NAB allows some transactions to be made within Xero, but what do they do with the data they see? A 2015 article promoted this integration yet not much has changed.

 

18:46 5 in 5 Summary:

Warrick Pleash, partner/manager of Bitcoin Trader, educated us on all things bitcoin.

·       Bitcoin is a token cryptocurrency coin used for exchange. It is also a creation of an encrypted ledger system for recording transactions. Key features: no central control, peer to peer, limited supply will affect pricing.

·       Several ways to buy bitcoin. In person, online platforms, brokers, international exchanges, and OTC market.

·       Bitcoins live in virtual ‘wallet’ addresses within an account with a 20-digit encrypted access code. Calculated to 8 decimal places. Many security options available.

·       Volatility plus restrictions on Facebook and in some countries affects the number of buyers in the market.

·       1,500 cryptocurrencies now. Raising capital through IPO’s partly replaced by Initial Coin Offerings. Coins can be linked to businesses whose clients can use them toward services like discount codes. May not have long-term value. Do your research.

·       SMSF trustees need to create coin assets in correct names. Many investment strategies need updating.

https://www.linkedin.com/in/warrickjohnpleash/

https://bitcointrader.org.au/

 

36:54 In-Depth Topic: What Does Bitcoin Mean For Accountants?

We need to understand our role in advising mum and dad investors, high-end investors, and businesses about cryptocurrencies. We need to understand how it works, what the legal and tax implications are in our jurisdiction, and how to handle the record-keeping processes. We also need to be ready for questions about whether to buy, sell or trade in bitcoin.

Bitcoin is not regulated, it has a zero-sum gain, and there is no way to quantify the value, so investing or taking payments in bitcoin can be very risky. It’s a gamble that may or may not pay off. We can share information but should avoid giving expert advice.