Denise LeDuc Froemming , CPA , CAE , MBA President & CEO CalCPA and CalCPA Education Foundation

From blockchain to cryptocurrency to digital wallets , there is no disputing that the digital economy is here to stay — and that there is an impact on the CPA profession .

As Gabriella Kusz , CEO of the Global Digital Asset and Cryptocurrency Association , said in a Rise & Stride podcast ( calcpa . org / riseandstride ): “ CPAs aren ’ t just your accountants . They ’ re trusted advisors . And they help many businesses grow , develop , expand and succeed . In that respect , they will likely be , just like some of the investment advisors , sort of a first point of contact .”

As cryptocurrencies like Bitcoin , Ethereum and Litecoin continue to gain mainstream momentum , it ’ s important for accounting professionals to have a working knowledge about the unique characteristics of cryptocurrency ; their valuation , classification and financial reporting implications ; and any specialized accounting treatment .

This understanding opens opportunities for CPAs to provide advisory services — a key growth strategy for today ’ s CPA firms — to clients . As businesses and individuals increasingly use cryptocurrencies , questions will come up about tax compliance , internal controls and risk management . CPAs equipped with cryptocurrency knowledge can assist clients in navigating this landscape .

There is a reason — lots of reasons , actually — why CPAs are considered the most trusted advisors in business . They are ,

more likely than not , the first person a client will go to when seeking answers to financial questions .

Cryptocurrency is not just a passing fad . What had been a niche area has fundamentally shifted the financial world . Understanding the potential implications of cryptocurrency is essential for CPA to provide the informed advice that clients and stakeholders are looking for .

And drilling down further to blockchain technology , the backbone of cryptocurrencies , there ’ s a need for CPAs to understand potential implications on the greater business world — everything from supply chain management , auditing and smart contracts .

Like any change , there may be some hesitancy to explore this area . After all , cryptocurrrency volatility can make their value difficult to predict and account for . And the decentralized and anonymous nature of cryptocurrencies presents tax compliance and regulation challenges .

But challenges also carry opportunities . And the ability to understand and leverage the potential of cryptocurrency is essential for CPAs to remain relevant and effective in a rapidly changing financial landscape .

Interested in building your knowledge in this area ? Be sure to visit https :// store . calcpa . org and enter “ cryptocurrency ” or “ blockchain ” in the search box . www . calcpa . org JULY 2023 CALIFORNIA CPA 3