From wallets to closed books
The order you set up and run an accounting entity in, with the guide for each step. A new entity's setup checklist walks you through the same steps the first time. After that, steps 5 to 10 repeat every period.
A portfolio entity only needs steps 3 to 5 and the portfolio pages. See working in a portfolio entity.
Set up once
1. Create the entity and invite your team. Choose an entity, set the opening balance date and number format on entity settings, then add your team with the right roles.
2. Connect QuickBooks. Optional. Connect QuickBooks and import the accounts your token cards and postings will use. Connecting first means each token card gets its QuickBooks account and opening balance posting when it is created. You can also connect later and link the cards then.
3. Add your wallets and accounts. One account per address, exchange, custodian or bank account:
- On-chain addresses, one at a time or from a CSV
- Exchanges, including Nexo
- Custodians
- Fiat bank accounts
Tag them with account tags if you want to filter by fund, team or purpose later.
4. Create token cards. A token card is one token in one account at one holding type. Nothing can be posted or reconciled until its card exists. Each card starts from an opening balance on the opening balance date. Check that every token has prices.
5. Pull past transactions. If the books start before today, request them on historical sync. New transactions sync by themselves from then on. Liquidity pool deposits and withdrawals are held back as LP positions until you decide how to book them.
6. Set up categories and rules. Add the categories you post to and choose which count for VAT and cost basis. Posting rules fill in the category and contra account on matching transactions.
Every period
7. Post. Work through pending transactions. Transfers between your own accounts go through hold matches, and anything you cannot place yet goes to suspense. Transactions that should never be booked are discarded. Finalise LP transactions on LP positions so they reach pending.
8. Reconcile. For each token card, reconcile the book balance against the on-chain, exchange or bank balance at the period end, record any differences, and finalise. With QuickBooks, check QuickBooks balances agree.
9. Cost basis. Give each token a cost basis opening balance, or set up all tokens at once. Then identify lots for disposals on the token's cost basis page and post realized gains and losses.
10. Valuation. Bring the books to the period-end value with valuation adjustments, or, if the entity reports under IFRS, with IAS 38 remeasurements. Both need the reconciliation for the period to be finalised. IAS 38 also needs cost basis to be in place, so do step 9 first.
11. Report. Queue the postings journal, balances, realized PnL, reconciliations and other reports for the period. Every change is in the audit trail.
Along the way
- Balance alerts tell you when a token card's balance crosses a level you set.
- Bills and invoices can be raised in QuickBooks from SimplyLedger.
- Support tickets reach the SimplyLedger team.