The collaboration will enable full integration of crypto payroll with conventional accounting processes and systems, providing an end-to-end service for businesses and employees.
The cryptocurrency payment infrastructure has come a long way in recent years. But services such as accounting and payroll management are still lacking. The ecosystem has been working hard to improve scalability, speed and cost. New blockchain projects have come up trying to resolve these issues. Some teams are working on layer 2 solutions to improve the scalability and speed for Bitcoin and Ethereum. We are fast approaching the days when billions of dollars will move around the world through the blockchain payment systems.
However, the supporting services for this payment infrastructure such as invoicing, accounting and payroll are still lacking. Our current fiat online payment systems are seamlessly integrated with such supporting tools. Finance teams can easily request payments, record transactions, create invoices, and automate bookkeeping. However, cryptocurrency transactions are hard to read and interpret. To have any chance at global adoption for cryptocurrency payments, we need user friendly supporting services.
Cryptocurrency payments are complex to analyse
A crypto business’s financial data exists across multiple chains, wallets and exchanges. Each of these has their own format. So consolidating this data is complex. Moreover, it is difficult to interpret even after consolidation. Transactions consist of random 34 characters long addresses and different cryptocurrencies. When you send 3000$ salary to your developer Tom, it is automatically labeled as such by your bank. But ‘sent 20.59 ETH to 0xeC590f69d0CbE1d5D9512C484940232d601E7863’ is much difficult to interpret. This also makes invoice management hard. To add to this complexity, every transaction is a taxable event. So businesses need to calculate their gains on each transaction.
Thus, there is a clear need for tools that seamlessly integrates the crypto payment system with the day to day tasks of business finance teams. This is the challenge PaymentX and Cryptio are working to solve. And now we want to join forces in this endeavour.
Cryptio – PaymentX partnership
PaymentX helps companies manage their payroll. Businesses can automatically pay their employees every month in crypto. It also simplifies sending payment requests and streamlines invoice processing. Hence finance teams can save time sending and receiving payments from contractors.
Cryptio will then consolidate all this activity, label the transactions, and calculate the gains or losses for each activity. Through the integration with PaymentX, the transactions will come with their contact names, amount and invoice information. Hence, businesses won’t have to deal with random alphanumeric addresses and 100s of different currencies. They can view all the details of their crypto transactions on a single dashboard. They can analyse their payment history, wallet balances, and exchange activity. The tool also helps automate accounting to save time on tax reporting.
Thus with this partnership, we are making it easier for crypto businesses to integrate all their financial management tasks with the crypto payment system. They can simplify sending and receiving payments, managing invoices, bookkeeping and reporting taxes. Businesses will save time and money. And we can help push mass adoption for cryptocurrency payments.