And simplifying crypto accounting πŸ› οΈ

Today's Agenda...

  • Benchmark Web3 compensation for yourself and your teams to optimize costs and boost motivation. πŸ’°πŸš€
    • Navigate crypto accounting complexities, using tools like Cryptio and Cryptoworth for efficiency and compliance. πŸ“ˆπŸ§Ύ

      ⏰ Reading Time: 5 min

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      Are you and your teams paid the right price ?πŸŒπŸ’°

      In this crucial transition phase between bear and bull markets, understanding fair compensation is more critical than ever. Are you and your web3 teams receiving the right remuneration for your contributions ? Let's dive into this question.πŸš€πŸ’Έ

      1- Why a fair compensation is so important especially in web3 ?

      • Youthful Ecosystem Complexity: The Web3 ecosystem is in its infancy, lacking well-defined practices and norms, which adds complexity to establishing fair compensation standards.
        • Diverse Project Spectrum: Within the Web3 domain, projects range from industry giants like Solana and Chainlink to newly launched, unfunded ventures. This diversity challenges the creation of uniform compensation structures.
          • Market-Driven Salary Trends: Compensation in Web3 is influenced not only by skill value but also by external factors, mirroring the market's bullish and bearish phases. Salaries follow the dynamic trends of the decentralized economy, requiring adaptability from both employers and employees. πŸ’ΌπŸŒπŸ“‰πŸ“ˆ
            Data never lie (or almost...)

            2- Introducing Crypto Job Lists Benchmark Tool

            Enter Crypto Job Lists' cutting-edge benchmarking tool, tailored for the Web3 space. By sharing your job details and compensation through this tool, you will gain access to a treasure trove of data, illuminating industry standards and trends. πŸ“ŠπŸ”

            It's an excellent tool for you, or as a manager or HR person, to challenge the remuneration of your team members, or a candidate's request for a job opening that seems a little exaggerated.

            Here is the form to fill in :

            Image credit : Crypto Job List

            Once the form has been filled in and validated (this can take several days), you can then access the database, which contains more than 5,000 comparison databases :

            Image Credit : Crypto Job List

            Important points to note :

            • Anonymity is not at all guaranteed, as you are asked to provide documents as a proof of your details (payslip, contract, etc), even if the company indicates that : β€œYour document will be deleted after review”. πŸ‘€
              • 11.8% of applications are rejected for inaccuracy or falsity. So don't lie, no one has time to lose.
                • The model includes bonuses and equity packages, but not token packages, which are very common in web3. So take your comparisons into account.

                  3- Don't snub generalist sites like Glassdoor

                  Old player platforms like Glassdoor can provide valuable insights, especially when benchmarking against major players like Crypto.com, Chainlink, Binance, and others.

                  Salary benchmark at Crypto.com (Image credit : Glassdoor)
                  Salary benchmark at Chainlink Labs (Image credit : Glassdoor)

                  It would seem that salaries for Software Engineer and Product Manager positions are better paid at Chainlink πŸ˜…

                  Glassdoor, as a broad platform, aggregates salary data across various industries and sectors, including technology and finance. Despite not being Web3-specific, it offers a baseline for understanding compensation trends and practices.πŸ’»πŸ’°πŸ”

                  Conclusion

                  As Web3 continues to reshape industries, staying informed about compensation trends is paramount. Crypto Job Lists' benchmarking tool emerges as a beacon in the decentralized landscape, offering nuanced insights into fair compensation practices. Whether you're an employer aiming to retain top talent or a Web3 professional seeking equitable compensation, embracing such tools can be helpful. πŸŒπŸš€

                  Subscribe now for free

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                  Simplifying crypto accounting: a comprehensive overview

                  Many new projects often underestimate the critical importance of establishing the right crypto accounting tools πŸ› οΈ early on for effective operational management and accurate tax calculations πŸ’°.

                  This article aims to demystify the complexities of crypto accounting, highlighting the essential data requirements and practical steps necessary to maintain precise and compliant financial records in the realm of cryptocurrency.

                  1- Key data requirements in crypto accounting πŸ“Š

                  Crypto accounting revolves around gathering and analyzing specific data points, crucial for accurate record-keeping. These include:

                  • Token Inventory : The number of tokens held, the blockchains they operate on, and the wallets used for storage and transfers.
                    • Valuation : Tracking the acquisition value of tokens, their value at the time of exit from the holdings, and their value during inventory checks.
                      • Transaction Purposes : Understanding the reasons behind each transfer, such as supplier payments, is vital for accurate accounting.

                        2- Data capturing and management πŸ—ƒοΈ

                        Accurate crypto accounting involves several steps:

                        • Blockchain Data Capture : This requires extracting data from each blockchain explorer for every wallet held.
                          • Market Value Cross-Referencing : Token values need to be cross-referenced with prices listed on platforms like CoinMarketCap or CoinGecko.
                            • Inventory Management : This involves maintaining a token stock record, adhering to accounting standards (FIFO or LIFO or WAC), and determining capital gains or losses during transfers or inventory audits.
                              • Transaction Classification : Manually qualifying each operation to deduce the appropriate accounting entries.
                                • Blockchain Fees : Identifying and accounting for blockchain usage fees (like gas fees) in transactions.
                                  • Accounting Software Integration : Translating these records into entries in standard accounting software.

                                    3- The role of a crypto sub-ledger πŸ—„οΈ

                                    For practical purposes, using a crypto sub-ledger is advisable. This tool facilitates:

                                    • On-Chain Data Capture : Automatically capturing movements in wallets and the value of tokens.
                                      • Automated Token Stock Management : Efficiently managing the number and value of tokens and calculating gains or losses.
                                        • Operation Labeling : Automatically attributing labels based on the nature of transactions and mapping these labels to an accounting chart of accounts.
                                          • Exporting Financial Data : Generating an auxiliary balance that can be integrated into standard accounting software.

                                            4- The tools we recommend :

                                            Cryptio and Cryptoworth.

                                            5- A full benchmark from web3 CFO

                                            Conclusion :

                                            Early adoption of crypto accounting practices πŸ“ˆ is crucial for navigating the complexities of digital assets. Starting promptly ensures accurate tax compliance 🧾 and operational efficiency, laying a strong foundation for future growth of your project.

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                                            Disclaimer : The goal of this newsletter is to inform and produce content related to management in the world of Web3. It is not investment advice. Investments in crypto-assets and NFTs are risky and can result in the loss of your entire capital. Always conduct your own research and exercise caution.