Cross-border remittances are no longer just the domain of wire services. Today, organizations are experimenting with cryptocurrency — often stablecoins — to move value across borders faster and at lower cost.
For finance and accounting teams, though, these transactions aren’t as straightforward as a simple bank transfer.
Under U.S. GAAP, cryptocurrencies are generally treated as intangible digital assets, not cash (see FASB ASU 2023-08). That means every remittance can create journal entries, valuation questions, and even realized gains or losses.
Crypto payments may look clean on-chain, but accountants know the real mess shows up in the journal entries. Whether you’re a CFO, an NGO treasurer, or a tax advisor, the time to master crypto remittance accounting is now.
Crypto vs. Fiat: What’s Different?
If you’ve ever accounted for a wire transfer, you know the drill: debit the expense, credit cash. Clean and simple. Crypto remittances, however, don’t follow that same pattern.
A fiat transfer is treated as straightforward cash-in, cash-out. But with crypto, every transfer is treated as the disposal of a digital asset. Instead of a single neat entry, you’re now dealing with valuation at the time of transfer, removal of the asset from your books at its carrying value, and the possibility of recognizing a gain or loss.
In short, sending crypto isn’t just “paying a bill” — it’s more like selling stock and then using the proceeds to pay the bill.
The Tricky Parts That Often Trip Up Finance Teams
Sending crypto is easy; getting the accounting right is harder. Here are the pain points that tend to cause trouble:
- Asset classification: Crypto sits as an intangible asset, now measured at fair value under FASB’s 2025 rules.
- Volatility and impairment: Prices move; GAAP doesn’t let you mark up after a drop (unless you early-adopt fair value).
- Cost basis tracking: Which “lot” of Bitcoin or Ether did you just send? FIFO, LIFO, specific ID? You need a method.
- Fees and spreads: Exchanges or wallets may deduct small fees — are those expense, revenue offset, or both?
- Recordkeeping: Auditors will want transaction IDs, fair market value sources, and supporting docs for every transfer.
These aren’t edge cases — they’re the everyday hurdles of booking crypto remittances.
Journal Entry Examples
Let’s bring it down to the ledger level.
Example 1: Paying a vendor in Bitcoin
- Vendor invoice: $10,000
- You send 0.25 BTC, worth $10,000 at the time
- Your books carried that 0.25 BTC at $8,000 (cost basis)
Journal Entry:
- Debit Professional Services Expense $10,000
- Credit Bitcoin Asset $8,000
- Credit Gain on Disposal of Crypto $2,000
Example 2: Paying in USDC (stablecoin)
- Contractor fee: $5,000
- You send 5,000 USDC (pegged to $1)
- You acquired them at $1 each
Journal Entry:
- Debit Contractor Expense $5,000
- Credit USDC Asset $5,000
In practice, stablecoins make life simpler — no material gain/loss to record, assuming the peg holds.
Example 3: Using a third-party service
If you wire dollars to a crypto payment processor and they handle the conversion and delivery, you may never carry the crypto at all. On your books, it’s just:
- Debit Vendor Expense $X
- Credit Cash $X
- Plus a service fee if charged
That’s the “hands-off” approach — simpler, but you’re reliant on vendor reporting.
Best Practices for Crypto Remittances
A few habits can save you grief later:
- Use stablecoins where possible to reduce volatility-driven gains and losses.
- Pick a cost basis method (FIFO, specific ID) and stick with it.
- Maintain airtight documentation: invoices, FMV sources, wallet addresses, transaction hashes.
- Build internal controls: dual approvals for transfers, reconciliation of wallet balances, segregation of duties.
Streamline Your Crypto Remittance Accounting with Bitwave
Here’s the reality: keeping track of cost basis, FMVs, and journal entries for every crypto payment is more than a spreadsheet job. That’s where Bitwave comes in.
Bitwave is a digital asset accounting platform that:
- Automates journal entries for every crypto transaction, including gains/losses.
- Syncs directly with ERPs and general ledgers so blockchain activity flows into your books in real time.
- Tracks cost basis across lots and wallets without the manual gymnastics.
- Provides audit-ready reports with all the transaction IDs, valuations, and support auditors love to see.
- Handles scale: whether you’re processing a dozen transfers a year or thousands a month.
Crypto remittances are here to stay. They save money, they settle fast, and they open financial access. But they also add accounting complexity that most teams aren’t prepared for. Bitwave bridges that gap — turning blockchain chaos into clean, compliant books.
If your firm is exploring crypto remittances, don’t leave the accounting to chance. Request a demo of Bitwave and see how much smoother crypto can be when your ledger speaks the same language as the blockchain.
Disclaimer: The information provided in this blog post is for general informational purposes only and should not be construed as tax, accounting, or financial advice. The content is not intended to address the specific needs of any individual or organization, and readers are encouraged to consult with a qualified tax, accounting, or financial professional before making any decisions based on the information provided. The author and the publisher of this blog post disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use or application of any of the contents herein.
