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Import your Bitcoin Sales into Quickbooks

on in News

Supported “home currencies”: USD, EUR, CAD

In Quickbooks, you do not need multi-currency enabled if your home currency is USD, EUR, or CAD, and you are taking 100% settlement from BitPay in that same home currency.

First, create 3 new Accounts in your Chart of Accounts. Income and Expense accounts can only be denominated in your home currency. (if your home currency is not USD, replace USD below with your home currency)

Type Income
Account Name BitPay Sales USD
Tax-line Mapping Income: Gross Receipts or Sales

 

Type Expense
Account Name BitPay Fees USD
Tax-line Mapping COGS: Other Costs

 

Type Bank
Account Name BitPay AR USD
Tax-line Mapping B/S Assets: Accts Rec


Your Bank Account should already be in Quickbooks. BitPay’s ACH/EFT transfer will be transferred to “My Bank” which you can change in the General Ledger transaction after import. Your Quickbooks Chart of Accounts should have these entries:


Here’s a test file to download:

https://www.dropbox.com/s/tj0dralgcl79u6d/USD-sales-USD-settlement.iif

In Quickbooks select: File - Utilities - Import - IIF files

If this imports and My Bank USD shows a balance of $100.00 then the file has imported correctly. Look at the G/L to verify the Sales Receipts.

Edit the transfer and replace “My Bank USD” with the Bank account in your chart of accounts that received the direct deposit from BitPay.

Your BitPay sales are now fully integrated with your financial reports in Quickbooks!

Note that if you keep any % of your sales in Bitcoin, this will not be noted in the download. It will prorate the gross sale to only the % of the gross sale which you settle in your local currency. Read the next section “Keeping Partial or All Settlement in Bitcoin” to learn more.

Income Statement derived from BitPay import


Balance Sheet derived from BitPay import


To download your BitPay transactions, login to your merchant account at https://bitpay.com. From your dashboard, click on Account Ledger and select your home currency to download.

You will need to specify the date range to download, and then choose Quickbooks IIF file.

We should note that Quickbooks does not support multi-currency very well, even in the 2013 edition. Nonetheless, we have used the capabilities of Quickbooks to their current maximum potential.

If you take 100% settlement from BitPay in your home currency, you are done!

If you keep a % of your BitPay Sales in Bitcoin, follow the next section to import those from your BitPay BTC ledger.

Keeping Partial or All Settlement in Bitcoin


The Gross, Net, and Fees are % prorated from the total amount of the sale. Meaning if you keep 10% bitcoin and settle 90% in EUR, your EUR ledger will have an entry representing 90% of the total gross sale, and your BTC ledger will have an entry representing 10% of the total gross sale, with the same Order Number so you can match them up in Quickbooks.

Create 2 more accounts in your Quickbooks Chart of Accounts:

Type Bank
Account Name BitPay AR BTCUSD
Tax-line Mapping B/S Assets: Accts Rec

 

Type Bank
Account Name My Wallet BTCUSD
Tax-line Mapping B/S Assets: Cash


These accounts represent the USD value of your Bitcoins, at BitPay and also when pushed to your Bitcoin Wallet.

How to Reconcile your Company’s Bitcoin holdings in Quickbooks


While Intuit’s support for multi-currency doesn’t give all the income/expense reporting needed for bitcoin transactions, it is possible to add your Bitcoin Wallet into Quickbooks, and mark your digital assets to market price every day or every month.

As of the 2013 edition, Quickbooks cannot:

  1. have an income account in any currency other than your home currency
  2. have an expense account in any currency other than your home currency
  3. allow you to set your home currency to a currency you add (e.g. Bitcoin)
  4. resolve any currency balance to more than 2 decimal place precision
  5. allow you to specify an exchange rate for each sale
  6. allow you to specify a data source for exchange rates for a currency
  7. allow you to upload a history of exchange rates for a currency
  8. allow an exchange rate with a date & time (only 1 rate per calendar day permitted)

We encourage Quickbooks users to contact Intuit directly and encourage development in the above 8 areas to improve their multicurrency support.

You cannot enter Income or Expenses in BTC, mBTC. But you can setup a Bank account in bitcoin to declare and value your bitcoin holdings. You will first need to enable multicurrency support in your Quickbooks. Then, you can add a new currency:

Company - Manage Currency - Currency (New)

Name millibitcoin (mBTC)
Symbol mBTC


Next, create a new account in your chart of accounts for each bitcoin wallet you want to account for in Quickbooks.

Type Bank
Account Name My Wallet mBTC
Currency millibitcoin (mBTC)
Tax-line Mapping B/S Assets: Cash


Because Quickbooks precision cannot go past 2 decimal places for the quantity, if you want to account for your bitcoin holdings you will need to use millibitcoins (mBTC). The exchange rate for mBTC is the rate for BTC divided by 1,000. Quickbooks does have 8 decimal precision when calculating the rate, but only 2 decimal precision on the quantity.

USD for 1 bitcoin (BTC) $ 123.4567
USD for 1 millilbitcoin (mBTC) $0.1234567


To transfer the balance from the USD representation of your bitcoin wallet to the mBTC account for your bitcoin wallet:

Every day, you will manually need to enter the exchange rate under Company - Manage Currency. The exchange rate is the USD amount pushed to My Wallet BTCUSD divided by the actual number of Bitcoins delivered to your wallet, as viewed directly on your BitPay BTC account ledger page.

Then, manually enter a TRANSFER every day to clear out the deposit from the My Wallet BTCUSD and transfer into My Wallet mBTC. Your Wallet should now show the latest deposit in the correct number of mBTC, and on your balance sheet the entire wallet balance will be marked to the current market price.

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