Has anyone set up bitcoin as a currency in Sage yet? Does it work well, or is it just simpler to manage bitcoin transactions in an Excel workbook and create entries in Sage in the base currency?
Surely it can't be a currency as its not legal tender?
Would it not be recorded as an investment similar to a painting? Or maybe a financial instrument?
Also, does that not make any transaction using Bitcoins a barter transaction?
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
It's definitely not a legal currency here. Neither most countries for that matter. It's interesting mind. Could it not be argued that it isn't an investment, when used for either consideration, purchases, revenue etc? Would you not treat it like a foreign exchange? In the sense of, recognise the value of the bitcoin against sterling on the day of transaction? I know of bitcoin and how it works, but from an accountancy / tax view, I do not. In my opinion, to treat it, as I say, in a similar way as foreign currency. If I sell a product for 100000 rupees, I'd take the exchange rate and convert - Indian rupees aren't legal tender here. Just my thoughts. I clearly don't know the definitive answer.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Per Shaun's note on another thread Actually, I was thinking of you a little while ago my wee fellow banker... What are your views on bitcoins? Not a debate for this thread but rather over in this one : http://www.book-keepers.org.uk/t61868517/bitcoin-and-sage/
My view is very much that people can't just go around making their own currencies up so its really just an investment (not necessarily a very good one!) similar to a painting (or in the case of bitcoins an invisible painting that we are told is there and is worth x amount).
lol, on the wee fellow banker! Banker boss lady if you dont mind! Actually I quoted your words in pink and then thought - oops, must put them in a more manly colour befitting of Mr Moderator.
My view on bitcoins - not for the likes of many of the gentle folk on here and Im too much of a laydeeee to say it quite as Im thinking! Actually Im surprised that you could not hear my complete disdain when the damned things were introduced and the shaking of my head so much that it rattles whenever I read anything about them.
I like the way they are described as being managed collectively by a ''network'' - but no-one knows who that network are. No-one owns the network. Does the network even exist. Or is it one person having a laugh at the rest of the worlds expense, with fat white cat on his knee in James Bond movie style.
I think the waters are being muddied a lot in that its attempting to be whatever people want it to be - a currency or an investment, whilst currently its just thin air!! With values that keep tanking!
Interesting how HMRC have no clue whatsoever how they want to treat this one and have just been putting vague comments out for the last, what, 2 years. Although when something like this is a worldwide phenomenan then no-one really wants to be the first to stick their head over the parapet and create a law which could be laughed out of court. Maybe the Japanese should tackle it first, as it was allegedly one of theirs who spawned it.
Interested to hear what your client is using it for Kate?
-- Edited by Cheshire on Wednesday 23rd of March 2016 06:54:49 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
"Interested to hear what your client is using it for Kate?"
Paying a ransom with it to have their files decrypted? :p
Lol.
I need to put the coffee cup down before I read some of your post Vince as I'm sure that this nescafe nasal spray can't be good for my keyboard and monitor!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
"Interested to hear what your client is using it for Kate?"
Paying a ransom with it to have their files decrypted? :p
Lol.
I need to put the coffee cup down before I read some of your post Vince as I'm sure that this nescafe nasal spray can't be good for my keyboard and monitor!
Lol. Fortunately I had just finished my coffee!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Just on the side question of money laundering, the exchange my client is using required the most stringent anti-money-laundering documentation of any of the banks, clients, or auditors I have worked with so far. I have had to write up AML policy for the client and had to provide KYC docs for each customer - it was a headspin.
Overall, I'm thinking it's most correct (and simplest) to keep the bitcoin records separate, and do the accounting as bitcoin is cashed out to base currency. The client does not intend to hold bitcoin long term; they will get paid by 2-3 customers monthly in bitcoin, and will cash out to base currency immediately.
Just on the side question of money laundering, the exchange my client is using required the most stringent anti-money-laundering documentation of any of the banks, clients, or auditors I have worked with so far. I have had to write up AML policy for the client and had to provide KYC docs for each customer - it was a headspin.Interesting Kate - does your PII cover you for preparing such? Did your client do any such checks on the 'exchange'?
Overall, I'm thinking it's most correct (and simplest) to keep the bitcoin records separate, and do the accounting as bitcoin is cashed out to base currency. The client does not intend to hold bitcoin long term; they will get paid by 2-3 customers monthly in bitcoin, and will cash out to base currency immediately. Be interesting too when they get to the year end and have to sort their tax, given HMRC have no clue what they are doing!
Thanks all!!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
