Bitcoin

What SMEs Need To Know About The Bitcoin Bubble

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Lee Murphy, owner at Accountancy Software Pandle:

“By their very nature, cryptocurrencies are encrypted, but this doesn’t make them any more secure than dealing in normal currencies, as many people may think. There is no regulation or policing that can investigate theft for you, so it’s important to get advice if you’re looking to to trade in or receive payment – cryptocurrencies are not the exception to the rule when it comes to monetary scams, and should not be treated as such. Bitcoin payments are also irreversible, and create an extra level of exposure that people may not be aware of. It’s important to act with caution and only do business with people and companies you know and trust.”

“If you do have a client who wants to pay you in Bitcoin, move ahead only if you have the appropriate systems in place, and do not consider the payment as automatic. Exchange rates with cryptocurrencies are incredibly volatile, so making or accepting payment this way can cause a loss when converting back to your standard currency.”

“Finally, despite what many people think, although cryptocurrencies are not official currencies, you still must adhere to tax and regulatory laws that apply to your business. Avoid falling victim to this pitfall and do your homework on how this will affect your business. If in doubt, consult advice from your accountant.”

About Lee Murphy
lee-murphyLee Murphy is the Managing Director and Owner of The Accountancy Partnership and also Pandle cloud accounting software. He started his own business in construction at the age of just 23 which later ran into difficulty after getting in a mess with his bookkeeping. This motivated Lee to change career by studying finance and accounting, later becoming qualified. Since that time he has sought to help small businesses with their finances and ensure that they don't run into the same problems he faced with his business. Lee established The Accountancy Partnership in 2008 with this goal in mind and has now grown the company to cater for over 3,000 businesses all over the UK and abroad. Most recently lee launched pandle.co.uk which is free and simple cloud based accounting software that puts the power back into the bands of small businesses by allowing them to understand and control their finances.