The burgeoning landscape of digital assets presents a distinctive problem for today's accounting professionals, specifically in streamlining the integration of these assets into existing financial tracking systems. Accountants and financial teams often seek solutions that enable a smooth inclusion of digital assets into their established systems without compromising accuracy or efficiency, but are often confounded by the complexity of the task.
Bitwave addresses this issue by automating accounting workflows, facilitating regulatory compliance, reducing the complexity of tax burdens and unifying financial data through a connected platform. The company crafts solutions ranging from straightforward, ready-to-use tax and accounting platforms to customized solutions that accommodate multiple subsidiaries, wallets and exchanges, all while interlinking with accounting systems like NetSuite, QuickBooks and Xero.
Founded in 2018, the San Francisco-based company pursues a vision to empower enterprises in accounting for cryptocurrencies, non-fungible tokens (NFTs), tokens and other digital assets. CEO and co-founder Patrick White discussed with Accounting Today his company's recent initiatives and plans for the future.
How would you describe what your company does?
White: Today's accounting software was not built to handle digital assets. That's the biggest challenge we solve for our customers. CFOs, accountants and financial teams are often looking for a way to seamlessly bring digital assets onto their existing tracking systems. We work with these teams to deliver a range of options — from a simple, "out-of-the-box" tax and accounting platform to a highly customized solution that can handle multiple subsidiaries, wallets and exchanges.
Bitwave automates accounting workflows, enables regulatory compliance, reduces tax burden complexity, streamlines payments and unifies data with a modern, connected platform. We gather and refine your financial data by seamlessly connecting with your digital asset wallets, exchanges, and other crypto platforms. Then, we effortlessly sync it with your existing accounting systems like NetSuite, QuickBooks, Sage, Xero, and more.
What is in your product line, and what is your flagship product?
White: Our product line includes features for digital asset accounting, tax reporting, crypto payments, decentralized finance (DeFi) monitoring and NFT tracking. Our flagship product is the Bitwave Enterprise Platform, which offers a comprehensive suite of tools for managing digital assets, from accounting to tax compliance.
What product of yours do you think should be better known among accountants?
White: I'd say our Bitwave Multibook is a hidden gem. It's designed for accountants who juggle multiple sets of books, whether for auditing, tax, or internal management. A click is all it takes to switch between them. We're ahead of the curve on the valuation front, especially with the FASB's new ASU that mandates measuring digital assets at fair value. We offer historical cost basis, fair value (mark-to-market), and both GAAP and IFRS impairment options. This ensures you're not just meeting compliance but also making informed financial decisions.
Finally, our Advanced Inventory Views is a must-have. This feature is handy for those who need to apply a specific gain/loss methodology for a particular asset — say, Bitcoin — in a specific wallet. Bitwave allows for custom wallet groupings and arbitrary transaction groups, giving you the flexibility to apply methodologies by asset.
What was the last big initiative or project your company completed?
White: We just announced a game-changing alliance with Deloitte that will redefine how enterprises handle digital assets. We're meshing Bitwave's tech capabilities with Deloitte's seasoned accounting, tax and advisory know-how. Ashok Parmar, partner, accounting and reporting advisory, and Deloitte's lead alliance oartner for Bitwave summed it up pretty well: "This is a true example of one plus one being much greater than two, where Deloitte and Bitwave bring significant value to our mutual clients."
What is the most exciting new thing you're working on?
White: Here at Bitwave, we believe that digital asset payments are the future. We actually think this is self-evident — we live in a hyper-connected world, and the idea of paying a percentage based on the size of a transaction to move funds around, when all that's happening is a bit flipping in a database, is absurd.
That's what we're tackling with our new Enterprise Crypto Payments product. We've teamed up with a major player in the space to create something that's not just another tool, but a significant shift in how the world transacts. We're talking end-to-end AR/AP solutions, easy vendor onboarding and a smooth process for managing invoices and executing payments. It's time we all start getting serious about not paying for payments.
What differentiates your company from others similar to it? What makes you different?
White: In the world of digital asset accounting, many platforms tout their ability to gather data. At Bitwave, we understand that it's not just about collecting data — it's about what you do with it. We offer the most advanced and customizable accounting features of any platform on the market — a few of which we mentioned above.
Also, the way we integrate with our partners is very unique. We're proud to be the only Crypto SDN Partner and approved integration for NetSuite, and we support over 50 mutual customers together. We're also the only Crypto Intacct MPP with an approved integration for Sage.
Beyond these prestigious partnerships, Bitwave is engineered for unparalleled flexibility to meet the unique needs of every business. Whether you require bank transactions for invoice payments or journal entries for a more comprehensive financial overview, we've got you covered. Our platform can even surface accounts directly from your ERP, ensuring a seamless integration and streamlined workflow. This adaptability extends to integrations with QuickBooks, Xero, Microsoft Dynamics 365, Workday and SAP, offering you the flexibility to grow and evolve with your business needs.
Lastly, Bitwave is much more than a crypto accounting software. We believe in owning the long-term success of every customer and partner. That's why we offer unparalleled support through things like our 60-day bookkeeper assistant program and continuous learning through Bitwave University.
What is the biggest tech challenge facing accountants today?
White: Just as Excel Spreadsheets and accounting software revolutionized finance and accounting, another paradigm shift is happening. A tidal wave of new digital assets is coming online, requiring us to update our knowledge and tools. Digital assets, like cryptocurrencies and NFTs, are an exciting revolution in the global ecosystem. But accounting for them on your financial books can be daunting — or even impossible — with current ERP solutions. That's why Bitwave was built: to bridge this gap between blockchain-based technology systems and the traditional finance world.
If your company has been experimenting with generative AI, how have you incorporated it into your business?
White: A few of our larger customers face the daunting task of categorizing up to 21 billion (yes, "billion" with a "b") transactions per year. That's way too much data for humans to process, so we've been experimenting with AI to automate transaction categorization and decrease the burden that's put on today's accountants.
Bitwave at a glance:
Location: San Francisco, California
Number of Staff: 80+
Approximate Size: 300+ enterprise clients
Website Info:
Number of Accounting Firms: 50+
Number of Accountants Served: 500+
Number of Products: 10 main modules
This has been part of our regular Vendor Spotlight series. To see previous Vendor Spotlights,
