Big Four accounting firms didn’t become industry giants by accident. Their rigorous standards and methodical approaches have defined excellence in finance for decades. Now, as cryptocurrency and blockchain technology reshape the financial landscape, these time-tested practices are proving more valuable than ever – but only for those who know how to adapt them. Few understand this better than Andrea Perlak, who’s bringing Big Four discipline to the wild west of Web3. By combining traditional accounting rigor with cutting-edge technological expertise, she’s showing how old-school excellence can strengthen new-world finance.
Building Robust Review Processes
“There’s a lot of things that the Big Four organizations do well that can be lost in smaller firms,” Andrea notes. The reason is twofold: these practices are expensive to implement, and many firms lack the depth or experience to properly execute them. Quality control stands as a cornerstone of Big Four practices, and Andrea has built her firm’s processes around this principle.
“When we have our team produce financial statements, it goes through rigorous review processes every month,” she explains. “I have one team producing the crypto side of accounting, another doing the fiat, and team managing how it all comes together.” The final review focuses on high-level strategic concerns. This includes “equity transactions, new token warrants, cash flow management, taxation issues, among many other complex issues” – elements that can make or break a company’s financial health.
Addressing Tax Complexities in Crypto
Tax planning becomes particularly crucial in cryptocurrency accounting. “Some of our clients are earning all of their income in crypto. When that crypto is at $108,000 for Bitcoin, that’s the basis for their tax liability. When it swings back down to $22,000, liquidating at that level hurts,” Andrea points out. The volatility of cryptocurrency creates unique challenges. “When they go to pay for their taxes at the end of the year, that Bitcoin could have devalued materially. These folks who had earned the income at a much higher level often don’t have the cash to pay that tax bill.”
Another key Big Four principle is maintaining consistent quality across international markets. “While Crypto Accounting Group has a global reach, we work with local partners on the ground to ensure that we understand the regulatory environment and the taxation environment in every jurisdiction, state or country,” Andrea says. This approach keeps the firm current with rapidly changing regulations. “On a given day, we could have a tax meeting with somebody in Australia, Cayman, BVI, Switzerland, Singapore, the UK or Canada. It is imperative to work with local regulatory, tax and accounting firms to ensure we are completely up to date in a rapidly changing environment.”
Prioritizing Technology in Blockchain Accounting
Understanding the technology becomes crucial in blockchain finance. “We operate at the leading edge of tech integration in the Web3 environment,” Andrea states. Her firm runs its own nodes and uses multiple subledgers to track different types of transactions. “We put tech and understanding the product first before we start thinking about accounting,” she emphasizes. “You can’t do proper accounting if you don’t understand the product or the tech behind it.”
Despite strong market demand, Andrea maintains strict quality standards. “We actually have to turn away customers every month,” she admits. “Every person and every group we take on, we want to make sure we do an excellent job so we limit the number of teams that we bring on.” This commitment to excellence has earned recognition. Andrea will be presenting best practices for Web3 accounting at this year’s World Economic Forum, sharing insights on how traditional accounting principles can strengthen blockchain finance.
Connect with Andrea Perlak on LinkedIn or check out her website to learn more about applying the Big Four best practices to blockchain finance.
