Blockchain Accounting, Tax and Financial Services

Blockchain Accounting, Tax and Financial Services

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LBMC has a wealth of experience advising rapidly growing businesses, particularly companies whose business models are centered around the delivery of technology solutions or the use of developed technology to deliver services. We understand the unique characteristics and challenges facing such companies, including revenue and software accounting, GAAP transition, and state and local tax compliance. These companies typically are rapidly scaling businesses, and usually, involve professional investors.  LBMC has invested in resources to ensure not only technical expertise, but the availability of multiple service offerings for such companies and investors in order to assist with business contingencies as they arise.

ICO/ITO Advisory Practice

LBMC launched a blockchain ICO/ITO advisory practice in 2018. We have a dedicated Blockchain Team covering the domestic and international tax planning, structuring, and compliance that arise from ICOs/ITOs as well as the ongoing tax and accounting needs for blockchain companies at all stages of growth.

Our foray into the ICO/ITO space was spurred by client interest and our connection to the rapidly growing local blockchain ecosystem. This new service line represents the natural evolution of our decades of experience advising early-stage start-up companies. ICO/ITOs are a powerful funding mechanism for blockchain companies that allow them to develop and grow without giving away ownership and control. This allows companies to get funded without going through traditional venture capital or private equity channels.

The downside of an ICO/ITO is the IRS tax treatment. This presents challenges and opportunities for tax planning and structuring to help reduce the potential tax burden on the fund raise. LBMC brings a wealth of knowledge and resources, both internally, and externally, through our membership in the Leading Edge Alliance and its global network of CPA firms. We have leveraged our relationships with our network firms to rapidly develop our blockchain expertise. You can rest assured that if we don’t have the answer, we will find someone who does. 

Accounting Services for ICOs/ITOs

  • Revenue Recognition and Timing
  • Software Capitalization
  • Equity Structuring
  • GAAP Impact of Token Sales, Transfers, and Compensation
  • Financial Forecasts and Projections
  • Financial Diligence for Acquisitions
  • Reconciliations for Wallets, Blockchain Platforms, and the General Ledger

Tax Services

  • ICO/ITO Tax Structuring
  • Strategic Tax Planning
  • Business and Individual Tax
  • State and Local Tax Services
  • Financial Tax Accounting & Reporting Assistance
  • Executive Tax and Compensation Strategies
  • Tax Department Co-sourcing & Outsourcing
  • Monitoring Tax Law Changes

Advisory Services

  • Credits and Incentives
  • Transaction Advisory Services
  • Mergers, Acquisitions and Divestitures
  • IT Security & Risk Assessment
  • Joint Ventures
  • Partnership Services
  • Financial Due Diligence and Accounting Structuring
  • Tax Due Diligence and Structuring
  • Operational Due Diligence

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