Alyssa Rambeau, CPA, MBA, was working as Director of Financial Reporting and became “burnt out on spreadsheets.” She was hungry for a new challenge that would expand her knowledge on technology, which led her to her current position collaborating with engineers to create crypto-accounting-specific software in 2021.
“I was able to get into tech which is where I wanted to be,” said Rambeau, Head of Accounting Strategy at Gilded. “I was able to apply my accounting knowledge in a place where it is highly valued and I’m learning a new skill to put on my résumé. This is my dream job.”
Because of their financial expertise, accountants are ideally suited to work in crypto accounting and manage digital assets. They can understand and accurately interpret blockchain transactions to later account for them in their general ledger. But digital assets frequently change value, which makes managing them trickier.
Because more companies are experimenting with digital assets, the demand for accountants who can apply their financial expertise to emerging digital technologies is increasing rapidly.
How a crypto accountant works with blockchain
If a digital studio wants to create and release a nonfungible token (NFT) or if an e-commerce company begins accepting a cryptocurrency like bitcoin, they’ll need a crypto accountant to help manage these digital assets.
While working with digital assets may sound challenging, crypto accounting is fundamentally “just debits and credits and just like your traditional accounting,” said Rambeau. “What throws that little bit of curveball is the volatility of it and the changing value.”
Blockchain is an advanced database used primarily to record and monitor transactions and assets.
Unlike a spreadsheet or bank database that’s maintained by one administrator, blockchain is a public ledger maintained by different users across a vast network. Nearly anything with value can be tracked on a blockchain network.
And that’s where crypto accountants come in.
Factors like demand, competition, and availability all affect the value of digital assets. Crypto accountants use software to help monitor the changing values of these assets.
“In traditional accounting, we may use the end of day balance,” said Rambeau. “But because transactions happening on the blockchain can experience significant fluctuations within a short period, and this volatility tends to vary throughout the day, the exact time of transactions is key — there’s a software that can capture that, it values [the asset] into your fiat of choice. Then [the software] puts it into the format that you can send it over into your general ledger.”
While the software does much of the heavy lifting, said Rambeau, a crypto accountant relies on their fundamental skill sets and professional skepticism to perform their jobs.
The day-to-day of a crypto accountant
Like traditional accounting, where a crypto accountant could work is varied.
“We need crypto accountants because more and more businesses are doing transactions on blockchain technology using crypto assets,” said Katie Millerbernd, CPA, and Assurance Senior Manager at EY. “Not only do we need crypto accountants at those businesses, but we also need crypto accountants on the audit and consulting side to partner with them and help them through the nuances of crypto accounting.”
Very few firms focus only on crypto accounting, said Rambeau. Although firms of various sizes still focus on traditional accounting services, they are also likely to hire a few crypto accountants or accountants who work with both traditional currencies and crypto to help manage the digital assets of select clients.
Although daily tasks vary, Rambeau and Millerbernd say their responsibilities closely resemble those of a typical accountant.
“You’re probably making journal entries related to recent blockchain transaction or auditing those journal entries,” said Millerbernd. “The one nuance is crypto accounting is constantly changing. [The job] is also keeping up on current market developments and trends.”
Additional tasks could include reconciling digital wallets at the end of each month, auditing transactions to ensure their accuracy, or assisting a client with their crypto payments.
Both Rambeau and Millerbernd agree: earning an accounting degree and CPA licensure provides the financial skills needed to succeed as a crypto accountant.
Accountants can gain further expertise through trainings and certifications in cryptocurrencies and digital assets specifically. Millerbernd advises getting familiar with the terminology. For her, that was the hardest part when she entered the space two years ago.
“There are a lot of very specific phrases that took me a long time to wrap my head around, understanding the full picture of what was going on and making sure I knew how to distill that into accounting and audit guidance,” Millerbernd.
A wild learning experience
Because digital assets and cryptocurrencies pose such unique challenges, Millerbernd describes this venture as “a fascinating learning experience.”
“I’ve really enjoyed my time looking at and thinking about things I wasn’t familiar with,” said Millerbernd, who spent nearly a decade working in audit. “I knew what bitcoin was. I had an idea blockchain was some sort of technology. I went from zero to one hundred there.”
Being an accountant in this digital space requires continuous research and learning, and that’s what Millerbernd has enjoyed most about her career switch.
Crypto accounting is fast paced, she said. It’s a perfect career choice if you love new challenges and are looking for a sector that changes frequently.
This is just one of many unique and dynamic career possibilities open to accountants. In addition to working with digital assets and cryptocurrencies, accountants also work in digital analytics, cybersecurity, and environmental reporting. AICPA® & CIMA®, seen together as the most influential body of accountants and finance experts in the world, have a variety of resources and learning opportunities for accountants at every step of their career — including student resources and memberships.
Accounting is more than number crunching. Discover today what a job in accounting can offer you.
