Some of the nation’s leading companies are incorporating blockchain technologies into their business processes. Blockchain’s disruptive technology has many practical uses. It can improve supply chain tracking and tracing, accelerate payments and streamline compliance and auditing. But taking the leap into blockchain’s new way of managing data can cause real apprehension. With good reason.
Savvy business guidance.
Increasingly, companies considering entry into the blockchain ecosystem have been asking Marcum for practical guidance on a wide range of topics. Marcum’s experienced team recognizes blockchain’s potential benefits and, more importantly, the security and internal controls that need to be in place before you dip your toe in the water.
Got Questions? Ask Marcum.
“A trading partner suggests we integrate some type of blockchain application, but my internal team has reservations. What’s it all about? What would we be getting into?”
Generally, our professionals would assess the possibility of blockchain driving cost benefits. Certain audit or tax areas, for example, are time-intensive. Use of blockchain technology has the potential to streamline the process, saving management and your external auditor both time and expense.
What is private key management and what internal controls should we put in place?
Managing private keys appropriately ensures there is no single point of failure, thereby avoiding a catastrophic loss of funds. Segregation of duties and backups are necessary throughout the organization.
“My client wants to pay us in Bitcoin. What would that mean from a tax perspective?”
Recordkeeping is extremely important in virtual commerce, including recording the cost basis at the time Bitcoin or other cryptocurrency is received and choosing a reputable institution to log it. Alternatively, you could accept Bitcoin but immediately convert to cash to avoid extensive recordkeeping.
“We’re beginning to get customers who want to pay us in Bitcoin, but neither our company nor our auditors have dealt with cryptocurrency before. Can you help?”
Marcum Technology can help, advising which wallet setup is optimal and how to implement sufficient segregation of duties to ensure process integrity.
“We’re a Bitcoin mining company, and we think we’re about to enter into a tax controversy case with the IRS over taxability. We need assistance.”
Marcum will assess the facts of your situation and provide guidance on next steps.
Marcum - ahead of the blockchain audit and tax technology curve.
While blockchain has gained in popularity, many accounting firms have little or no experience working with companies in the blockchain industry—those who build and operate blockchain technologies, as well as exchanges and data mining companies. Marcum’s auditors have earned a reputation throughout the blockchain ecosystem for demonstrating the necessary skills and know-how to handle these complex audit and tax situations. Additionally, Marcum’s tax professionals perform the full range of tax advisory and tax compliance services for companies using blockchain in their businesses, including data miners and exchanges.
Blockchain private key management and consulting services.
Marcum Technology’s blockchain practice has worked closely with Marcum’s auditors, regularly opining on internal controls and processes surrounding private keys and on private key management. Marcum professionals now offer this same advice and guidance to our consulting clients.