Paying freelancers in crypto: accounting compliance

[2125432]

Hi everyone!

I’m looking how to set up a compliant crypto payment process for a freelancer with regular payments.
My company is a non-resident LLP in
UK with a Nexo account, and I want to ensure everything is done correctly from an accounting side.
The freelancer is open to receiving payment in crypto, but I’m unsure about the specifics, which papers I should ask from contractor?

Does Nexo allow transfers to third-party wallets, or only to wallets under the same account? Is it better to specify amounts in USDT with a GBP or EUR equivalent?

Any advice on staying compliant and handling the accounting properly would be appreciated!

 

[JohnnyDoe]

Put your crypto in a non custodial wallet and send from there.
Ask to be invoiced in USDT or whatever crypto you like.
Very simple
You don’t need Nexo.

 

[2125432]

Put your crypto in a non custodial wallet and send from there.
Ask to be invoiced in USDT or whatever crypto you like.
Very simple
You don’t need Nexo.

Thanks your answer! Just to clarify—if I buy crypto and pay the contractor with it, would that count as a business expense? Right now, we don’t have any crypto, so we need Nexo just to buy it. Does this setup still make sense for accounting?

 

[JohnnyDoe]

Thanks your answer! Just to clarify—if I buy crypto and pay the contractor with it, would that count as a business expense?

Of course! For ease of accounting, ask the contractor to indicate his wallet address on the invoice.

Right now, we don’t have any crypto, so we need Nexo just to buy it. Does this setup still make sense for accounting?

Yes, you can buy with Nexo or whatever exchange you like.
You just need to have a decent accountant who understands crypto. If you mainly use crypto it might be easier to keep financials in USD.

 

[2125432]

You just need to have a decent accountant who understands crypto. If you mainly use crypto it might be easier to keep financials in USD.

Thanks for the clarification!
All our company operations are conducted in EUR, and the only subcontractor from a currently unpopular country wants to be paid in crypto. I have a part-time accountant whose only role is to file the annual report based on the bank statements (for £1,500 a year) and I handle all other records myself.

P.S. Is this a reasonable price for such accounting services?