# How to Create a Chart of Accounts for Crypto

{% hint style="danger" %}
**NOTICE: This page is out of date for US-incorporated companies. FASB now requires specific tracking of digital assets. See the** [**FASB guidelines from KPMG**](https://frv.kpmg.us/reference-library/2023/fasb-wraps-up-initial-crypto-project-deliberations.html) **for more details.**
{% endhint %}

**Customer Integral's Chart of Acounts template for a Quickstart:**

{% file src="<https://3061199926-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Ft1fkaxq4yvhcAFiQKv7R%2Fuploads%2FsfbrtWQZ0yBEPegvJFdk%2FDefault%20COA%20Template.csv?alt=media&token=4689f575-803f-46e4-b3a8-f0dffbaae7e2>" %}

#### **What is a Chart of Accounts?**

A Chart of Accounts is a categorized ledger of all your business activities. It is composed of many financial categories (referred to as “ledgers” by accountants): **Assets** that you hold, **Income** that you earn, and **Expenses** that you spend. Some companies will also have a **Cost of Goods Sold** category.

Categorizing your transactions according to a Chart of Accounts will give you a picture of your business’ financial health.

| Report        | Category             | Examples                                                           |
| ------------- | -------------------- | ------------------------------------------------------------------ |
| Balance Sheet | Assets               | Examples: Bank accounts, Digital Assets, Non-Fungible Token Assets |
| Profit & Loss | Income categories    | Examples: Sales, Royalties, Staking Rewards                        |
|               | Expense categories   | Examples: Gas Fees, Realized Gains/Losses, Marketing Expenses      |
|               | Cost of Goods & Sold | Examples: Minting Fees, R\&D                                       |

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### **How to set up a GAAP-compliant Chart of Accounts for crypto**

To best represent your crypto activity in Integral, you will need four types of accounts:

1. Intangible Asset accounts for all your **crypto assets (wallets, tokens, and NFTs)**
2. An Expense *or* COGS account for your **Gas Fees**
3. An Expense account for your **Realized Gains & Losses**
4. An Expense account for your **Unrealized Gains & Losses**

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## How to set up your Intangible Asset accounts

<mark style="color:orange;">⚠️ Please consult an accountant when creating your Chart of Accounts</mark>

<mark style="color:purple;">**Option #1: Bundled into Digital Assets**</mark>

In the US, GAAP standards require crypto companies to record all their crypto assets as ***intangible assets***. This may be different in other regions. For this reason, you might see crypto assets bundled into a single “Digital Assets” or “Intangible Assets” account (regardless of how many wallets or tokens you hold).

This is compliant and legally correct. It’s a good solution for companies where crypto is a small portion of their business. However, for companies where crypto is their core business, this might not provide sufficient granularity to understand the financial health of your company.

<mark style="color:purple;">**Option #2: Categorized by Token**</mark>

*Typically seen by: Companies with many tokens, Bounty Marketplaces, DEX, DeFi platforms*

For treasury-oriented crypto companies that operate across multiple chains, earn income in different tokens, and conduct DeFi activity, it usually makes sense to have asset categories for each major token held.

For a Bounty Marketplace, a very simplified Chart of Accounts might look something like:

<table><thead><tr><th width="188.33333333333331">Report</th><th width="209">Category</th><th>Account</th></tr></thead><tbody><tr><td>Balance Sheet</td><td>Assets (intangible)</td><td>Ethereum (ETH)</td></tr><tr><td></td><td></td><td>Solana (SOL)</td></tr><tr><td></td><td></td><td>Avalanche (AVAX)</td></tr><tr><td></td><td></td><td>Polygon (MATIC)</td></tr><tr><td></td><td></td><td>Other tokens</td></tr><tr><td>Profit &#x26; Loss</td><td>Income</td><td>Bounty Income</td></tr><tr><td></td><td></td><td>Staking Rewards</td></tr><tr><td></td><td>Expenses</td><td>Gas Fees</td></tr><tr><td></td><td></td><td>Realized Gains &#x26; Losses</td></tr><tr><td></td><td></td><td>Unrealized Gains &#x26; Losses</td></tr></tbody></table>

→ Get someone to [set this up for you](mailto:hi@integral.xyz?subject=Onboard%20to%20Integral) with Integral.

<mark style="color:purple;">**Option #3: Categorized by Wallet**</mark>

*Typically seen by: NFT Collections, Creator Marketplaces*

For operations-oriented crypto companies that have wallets tied to specific activities like royalty income, payments, and other operations, it may make sense to have intangible asset categories for each wallet.

For an NFT company, a very simple Chart of Accounts might look something like:

<table><thead><tr><th width="178">Report</th><th width="210.33333333333331">Category</th><th>Account</th></tr></thead><tbody><tr><td>Balance Sheet</td><td>Assets (intangible)</td><td>Royalty Income - Collection #1</td></tr><tr><td></td><td></td><td>Royalty Income - Collection #2</td></tr><tr><td></td><td></td><td>Treasury Multisig</td></tr><tr><td>Profit &#x26; Loss</td><td>Income</td><td>Primary Sales</td></tr><tr><td></td><td></td><td>Secondary Sales - Collection #1</td></tr><tr><td></td><td></td><td>Secondary Sales - Collection #2</td></tr><tr><td></td><td>Expenses</td><td>Gas Fees</td></tr><tr><td></td><td></td><td>Realized Gains &#x26; Losses</td></tr><tr><td></td><td></td><td>Unrealized Gains &#x26; Losses</td></tr><tr><td></td><td>Cost of Goods &#x26; Sold</td><td>Minting Fees</td></tr><tr><td></td><td></td><td>NFT R&#x26;D</td></tr></tbody></table>

→ Get someone to [set this up for you](mailto:hi@integral.xyz?subject=Onboard%20to%20Integral) with Integral.

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## Set yourself up for success with Integral

Integral gives you full flexibility to set up your Chart of Accounts in the way that best reflects your business. Simply map your wallets and tokens to the appropriate asset accounts in the [Chart of Accounts page](https://app.integraltreasury.xyz/policy-center/chart-of-accounts). If you need help, follow the instructions [here](https://integral-treasury.gitbook.io/integral-treasury/start-guide/map-your-chart-of-accounts).

And of course - [say hi](mailto:hi@integral.xyz?subject=Onboard%20to%20Integral) to get started! :wave: