As the year draws to a close, Web3 finance managers need to prepare for an intricate set of year-end tasks that balance traditional finance requirements with the unique aspects of decentralized finance. From managing crypto holdings and intercompany balances to ensuring compliance, Web3 finance teams face an array of challenges. Here’s a checklist of essential tasks for a smooth and accurate year-end close:
- Accrue Bonuses and Other Year-End Provisions
- Remind Employees to Submit All Claims and Expenses
- Confirm Completion of Services for Revenue Recognition
- Reconcile Intercompany Balances, Including Crypto Quantities and Exchange Rates
Additional Tips for a Smooth Web3 Year-End Close
- Stay Informed on Regulatory Changes: Web3 regulations continue to evolve, and year-end is an ideal time to review compliance. Ensure that all necessary disclosures and reporting requirements are met to avoid surprises.
- Automate Processes: Look for opportunities to automate repetitive tasks, such as expense submission and intercompany reconciliations. Leveraging software solutions that integrate traditional and crypto finance processes can save time and improve accuracy.
- Foster Cross-Department Collaboration: A smooth year-end close requires input from various departments. Ensure that teams in revenue, HR, and operations understand their roles and deadlines for closing.
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