Welcome back to Inside Basis, our monthly newsletter for all things crypto accounting and tax! This edition will be different from our typical update since we wanted to write a 2023 review and lookforward to 2024. This year has been phenomenal. The first year of a new business is always rife with highs & lows, a Sierra Nevada of triumphs and failures. But despite the challenges, it’s been so rewarding to help our customers succeed and learn from the trials of entrepreneurship. Crypto accounting and tax had their moment in 2023 and while we received fresh guidance, the gray areas far outweigh the clarified ones. This really is the most exhilarating area of accounting, at least while this thesis holds true. So cheers to a new year and thank you for being with us during this journey - 2024 is shaping up to be even more groundbreaking. ✨

Hash Basis by the Numbers

We surpassed our wildest dreams in 2023, helping over 30 customers and helping them account for over $300m worth of digital assets. Because crypto accounting is so vast and differentiated, we dabbled in nearly all of the existing verticals in the industry, from NFT platforms to layer one protocols. Our service offerings were varied as well: in addition to our standard monthly accounting subscription, we filed tax returns, completed ad hoc crypto reconciliations, and consulted on revenue recognition standards. Our goal is to become even more niched, but for now, while service providers are slim pickings, we’ll continue assisting our customers with whatever they need.

We also established a public presence in 2023 through a myriad of conferences, webinars and guest instructor appearances. My personal highlight was speaking at Quickbooks Connect and marrying my love of crypto accounting with the traditional accounting community - two worlds collided! We love educating professionals on the complex and absurdly odd nature of crypto accounting - and we plan to continue this push in 2024. :)

Overall, 2023 was an explosive and informative year for Hash Basis. We thank all of our customers, ecosystem partners, friends and family for taking a chance on us and supporting us as we grow. We couldn’t do this without all of you!

2024 and Beyond

I spent about 8,000 words reflecting on 2023 and pontificating internally about what 2024 held. I write personal reflections every year, and I find it helps me reset to center and focus on the long view of life. When thinking about Hash Basis and what 2024 holds for us, several themes emerged:

• Expand Hash Basis capacity through hiring talent‍

We are rapidly approaching capacity, so we need to expand our team to include more senior accountants and tax preparers. The demand for crypto accounting is only growing (especially with bull market rumblings), and our dream is to serve any business or individual that is the right fit.

• Grow the Hash Basis brand through conferences, articles and podcasts

We love spreading the gospel about crypto accounting, and we plan to ramp up these efforts in 2024. Education about digital assets is reaching a critical juncture: new standards have either been passed or are in the final stages of deliberation, yet knowledge about crypto accounting is still lacking. This was painfully evident at Quickbooks Connect, when all the “normie” accountants looked at me like I was a fantastical beast.

• Premier technical prowess

This theme is a sister to the preceding one. There is so much to learn and absorb about our field (i.e. this new digital asset reporting requirement by FinCEN that kicks in on Jan 1, 2024). My goal is to continue grooming Hash Basis into a technical powerhouse so we can give our customers a cutting edge.

• Doing our part to fix the talent crisis

College students aren’t going into accounting anymore (because of low pay, long hours, boring reputation, etc) so the pipeline of American accountants is parched. We want to do our part to encourage more people to enter the profession, which we’ve found to be incredibly lush and rewarding. We’re still tinkering on the how, but expect an announcement to come later in Q1…

So here’s to 2024, a year brimming with new ideas, dogged determination, and a deep admiration for our customers and the problems we’re helping them solve. We’re motivated and nourished by our work, and we’re so grateful for every opportunity. Happy New Year!

Sincerely,

Mackenzie Patel, CEO & Founding Partner