Practical Points for Bitcoin Journal Entry Processing | Correct Accounting Methods for Cryptocurrency

Why Journal Entries Are Important

As digital asset transactions increase, accurately understanding how to record Bitcoin purchases in accounting is directly related to internal controls and tax reporting for companies. Many accounting personnel struggle with Bitcoin journal entries, but once you grasp the basic rules, handling them is not difficult. This article explains the fundamentals of journal entries for beginners, from basic concepts to practical points.

What Are Journal Entries?｜Basics of Cryptocurrency Accounting

When purchasing cryptocurrencies like Bitcoin, the process of accurately recording the transaction in the accounting books is called a “journal entry.” When a company or sole proprietor holds Bitcoin as an asset, it is required to record it with debit and credit entries under appropriate account titles, similar to cash or real estate. Mistakes in journal entries can lead to serious issues during audits or tax filings, so precise knowledge is essential.

Cryptocurrency Accounting Rules｜Historical Changes and Current Standards

In 2017, when Bitcoin began attracting attention, Japan’s accounting standards were based on traditional financial assets, and there were no unified guidelines for handling cryptocurrencies. Later, the Accounting Standards Board of Japan (ASBJ) developed standards for the acquisition cost valuation of cryptocurrencies, and now recording under the account title “Cryptocurrency” has become standardized.

Bitcoin Purchase Journal Entry｜Basic Recording Patterns

Purchase with cash