Qoin for your business: Over the past year, there has been an increase in Australia in using Qoin as a payment for services and goods. For this to happen, a business must be registered to accept Qoin as a payment method.
Qoin is a digital currency that was created on the Gold Coast, Australia. According to the about section on Qoin’s website, “participating merchants will accept Qoin as payment for real goods & services. The purchasing power of a Qoin token within the ecosystem of participating merchants, is described as Qoin’s ‘value’.
Qoin is also able to be traded on Block Trade Exchange Limited (BTX). This means that Qoin tokens have a daily buy or sell price. The daily buy or sell prices represent how much the Qoin tokens can be traded for on BTX, and are different from the ‘value’ of Qoin. For this reason, the value may be different from the buy or sell price on BTX.
If a business aims to make sure that businesses who decide to sign up to accept Qoin as payment for the goods and services understand the consequences of doing so.
Here are some key things to be aware of when deciding to sign up to accept Qoin as a form of payment in your business.
Qoin For Your Business: Qoin Has A Floating Value
Because Qoin has a floating value, this means that 1 Qoin doesn’t necessarily mean one dollar. Having a floating value means that there is usually a focus on the “rising” value of a Qoin. This also means that Qoin has the potential to fall in value.
If you are selling an item for $50 and you accept Qoin as payment, you should be aware that your stock and other business bills such as wages, will need to be paid for in hard cold dollars. If Qoin falls in value, how do you pay the bills each month? If you are in a position where you can afford to speculate with the money you receive for your goods and services, then perhaps you can consider accepting some Qoin as payment, but it would generally be very unwise for someone to accept Qoin as payment for goods and services if they do not have the cash in the bank to cover their expenses.
Qoin For Your Business: Capital Gains Tax and Income Tax
Capital Gains Tax is another thing you should consider. If you accept Qoin as payment for a $100 service, the first thing is that you must record the value of the Qoin that is offered as payment on the day of the transaction. This is due to the fact that the ATO requires you to have the value in dollars recorded in your books for accounting purposes.
Assuming you accept Qoin for payment for a $100 service. In 4 weeks’ time, when you are paying your accounts, you need to sell some Qoin to generate the cash needed to pay your bills. The sale price of the Qoin could lead to either a capital gain or a capital loss, or in a trading sense, it could simply be viewed as additional income.
This means that every time Qoin is accepted as payment for goods or services, or Qoin are cashed or used for the payment of suppliers or services of any sort, you will need to record the value of the Qoin on that day in dollars. Every transaction needs to be recorded in dollars.
Bookkeeping
Most business owners are seeking simplicity in the bookkeeping or admin tasks in general. The use of Qoin will require additional tasks. This includes the recording of the value of the Qoin at the time of each and every transaction. Businesses wishing to accept Qoin as a form of payment will need to take into consideration the costs business owners will need to spend for the cost of a professional bookkeeper.
