A cryptocurrency, crypto-currency, or crypto is a collection of binary data that is designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.[1][2][3]

This blog hopes to provide you and your company with an overview of the kinds of questions and insights enterprises should consider as you conclude whether and how to use crypto. So, if your company plans to participate, it’s important to prepare, think ahead, and engage in an attentive manner.

The benefits of using cryptocurrency

Considering the benefits of crypto? A growing number of companies worldwide are using bitcoin and other digital assets as a host of investment, operational, and transactional purposes. As with any frontline move, there are things to learn and observe. Let’s explore the kinds of questions and insights enterprises should contemplate as they determine whether and how to use digital assets.

Why consider using crypto?

More than 2,300 US businesses accept bitcoin [4], according to one estimate from late 2020, and that doesn’t include bitcoin ATMs. An increasing number of companies worldwide are using bitcoin and other digital assets for a multitude of investment, operational, and transactional reasons.

The use of crypto for conducting business presents a host of openings, and challenges. As with any frontline, there are unknown dangers and strong incentives. That’s why companies venturing to use crypto in their businesses should have three things: a clear understanding of why they are undertaking that action, a list of the many questions they should consider, and a CPA to confirm the correct steps were taken.

Another benefit of crypto is that it may provide access to new demographic groups. Users often represent a more cutting-edge following that values transparency in their transactions. One recent study found that up to 40% of customers who pay with crypto are new customers of the company [5], and their purchase amounts are twice those of credit card users.

Below are more benefits of crypto to consider:

  • Introducing crypto now may help branch internal awareness in your company about this new technology. It also may help position the company in this important emerging space for a future that could include central bank digital currencies.
  • Crypto could enable access to new capital and liquidity pools through traditional investments that have been tokenized, as well as to new asset classes.
  • Crypto furnishes certain options that are simply not accessible with fiat currency. For example, programmable money can enable real-time and accurate revenue-sharing while enhancing sheerness to facilitate back-office reconciliation.
  • More companies are finding significant clients and vendors want to engage by using crypto. Therefore, your business may need to be positioned to receive and disburse crypto to assure smooth exchanges with stakeholders.
  • Crypto provides a new boulevard for enhancing a host of more traditional activities, such as:
    • Allowing simple, real-time, and secure money transfers
    • Helping strengthen control over the capital of the enterprise
    • Managing the risks and opportunities of engaging in digital investments
    • Crypto may serve as an effective alternative or balancing asset to cash, which may depreciate over time due to inflation. Crypto is an investable asset, and some, such as bitcoin, have performed exceedingly well over the past five years.

Two primary pathways for using crypto

The first question to ask when considering using crypto in your company’s operations is: do we hold crypto on our balance sheet or simply adopt crypto-enabled payments? To determine the right path for your business, you need to make a careful determination of the best fit for your business objectives. Consider the potential benefits, drawbacks, costs, risks, system requirements, and more. The following sections will provide some broad considerations around two different paths as your company embarks on its crypto journey. Speaking with a CPA can help alleviate these questions and help you take the road that is best for you.

How to enable cryptocurrency payments

Some companies use crypto just to facilitate payments. One avenue to facilitate payments is to simply convert in and out of crypto to fiat currency to receive or make payments without touching it. In other words, the company is taking a detached approach that keeps crypto off the books.

Enabling crypto payments, such as bitcoin, without bringing it onto the company’s balance sheet may be the easiest and fastest access point into the use of digital assets. It may require the fewest adjustments across the range of corporate functions and may serve instant goals, such as reaching a new clientele and growing the volume of each sales transaction. Enterprises adopting this limited use of crypto typically rely on third-party sellers.

The third-party vendor, acting as an agent for the company, accepts or makes payments in crypto through conversion into and out of fiat currency. This may be the simplest option to pursue. And, likely, it may cause relatively few disruptions to a company’s internal functions, since the “hands-off” approach keeps crypto off the corporate balance sheet.

Alternatively, setting up your shop to accept crypto as a form of payment can significantly delay taxes while acting as a hedge against inflation.  While this will bring crypto onto your balance sheet, it can be treated as a long-term investment for maximum benefit.  This is especially helpful to have as a tax-saving measure in high-profit years and as a safety lever in low-gross or low-profit years.

Ready to move into cryptocurrency? Let us help

At Lawhorn CPA Group, we believe in simplifying the complexity of business finances. We have 40 years of experience helping clients operate more efficiently, with more clarity, and with greater confidence as they grow in their industry. We understand how to navigate new and existing tax laws to save money for you and your business, as well as provide bookkeeping, consulting, and financial advisory services. With Lawhorn CPA, we partner with you to find accounting software that helps with your day-to-day needs and works in concert with the services we provide. That way, your bookkeeping will have 360-degree coverage, saving you time and money at tax time and throughout the year.

If you’re ready to operate your business with greater financial confidence, contact Lawhorn CPA Group. You can connect with us via our website contact form, by emailing infocpa@lawhorncpa.com, or by calling (865) 212-4867 to get the advice you need today.


  1. Andy Greenberg (20 April 2011). “Crypto Currency”. Forbes. Archived from the original on 31 August 2014. Retrieved 8 August 2014
  2. Polansek, Tom (2 May 2016). “CME, ICE prepare pricing data that could boost bitcoin”. Reuters. Retrieved 3 May 2016
  3. Pernice, Ingolf G. A.; Scott, Brett (20 May 2021). “Cryptocurrency”. Internet Policy Review. 10 (2). doi:10.14763/2021.2.1561ISSN 2197-6775
  4. Maddie Sheperd (16 December 2020) How Many Businesses Accept Bitcoin? Fundera Resources
  5. Study Shows Merchants That Accept Bitcoin Attract New Customers and Sales, Study by Leading Research Firm Gleans Insight from BitPay Merchants, Business Wire Staff