Tag Archives: financial adviser

Qoin and what it means for your Business

In recent times there has been a surge in inquiries regarding the use of Qoin as a payment for goods and services, and of course, for this to happen, businesses must be registered to be able to accept Qoin as payment for goods and services.

This article is aimed at ensuring the businesses that do sign up to accept Qoin as payment for the goods and services they understand the consequences of doing so.

The key issues to consider are:

  1. Qoin has a floating value. It is not as simple as saying that 1 x Qoin equals 1 x dollar.
  2. Capital Gains Tax and Income Tax
  3. Bookkeeping costs in terms of the business owners time or the cost of a professional bookkeeper.

Qoin has a floating value and there is often a focus on the “rising” value of a Qoin. Of course, whatever rises in value can also 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 in normal circumstances 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 normally be quite 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.

Capital Gains Tax and or income tax may be something you need to consider. If you accept Qoin as payment for a $100 service, the first thing that needs to happen is that you record the value of the Qoin offered as payment on that day, because the ATO requires that you have the value in dollars recorded in your books for accounting purposes.

Let us assume you accept Qoin for payment of 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 result in either a capital gain or a capital loss, or in a trading circumstance, could be simply treated as additional income. So, 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 – the recording of the value of the Qoin at the time of each and every transaction.

Qoin as an investment: It is not the purpose of this article to deal with the value as an investment of Qoin. I am not qualified to talk about it and those selling Qoin tell me they are not qualified to talk about it. But it always comes up. The topic of the rising value of Qoin is always mentioned, but the possibility of a fall in value is not. It was recently suggested to me that some employers were considering paying their staff wages using Qoin at least to some degree. I would recommend seeking industrial relations advice prior to such activity to confirm this would satisfy the awards covering the employee’s employment terms and conditions.

There are many different cryptocurrencies. At the moment there seems to be a lot of interest in Qoin. Just make sure you fully understand the implications of using Qoin in business and it may be worthwhile reading the information provided on the ATO website, click on the LINKS below –

Cryptocurrency used in business

Tax treatment of cryptocurrencies

Transacting with cryptocurrency

If you are looking to simplify your business administration, or if you are concerned about the cost of bookkeeping or accounting fees now, then consider that adding the complexity of using Qoin in your business transactions may add further to the cost of your bookkeeping or accounting services.

I hope this article has been of some assistance.

Senior Financial Advisor

Peter Jordan

Joredg Pty Ltd as trustee for the Jordan Hybrid Fixed Trust t/as ClearWay Advice and Financial Management. ABN 93 745 037 799. Peter Jordan Sub-Authorised Representative 244948. Joredg Pty Ltd Corporate Authorised Representative 473095 Advice Links Pty Ltd AFSL No 517955.

The Ideal Financial Adviser


The Ideal Financial Adviser:

The Ideal financial adviser is “someone who likes you and doesn’t care about  our feelings.” This is an adaptation of a quote from Daniel Kahnemann.

Good advice is not always something we want to hear or read. It does not always fit with what we think or what we want to do. In this age of instant gratification, financial advice can often fall into this category.

Spending hard earned money on new cars, overseas holidays, perhaps even a new home, is not always wise and does not necessarily fit into your financial plan.

Do you have a financial adviser, and if you do how strong is he or she when it comes to “encouraging” you to stay the course, to stick to the plan, to follow the course of action that will give your financial plan the best chance of success. If purchasing new cars, overseas holidays, or a new house is needed, then the financial plan needs to be adjusted and you need to understand the cost of this spending in terms of the achievement of your longer term goals.

And, do you respect the financial adviser enough to listen, to listen to what she or he says, and to take it on board and act on the recommendations.

And if you don’t have a financial adviser, how do you know you are on track to meet your financial goals, if in deed you have defined the goals and the path to success in regards to those goals.

Financial Planners are a unique breed – we need to listen carefully, to analyse the numbers, to be empathetic, and yet to be firm, and to develop workable strategies and monitor the outcomes. Financial Plans take time to yield results, they are not short term. You and your financial planner need to be able to work together to achieve the stated goals. Like life and all relationships, there will be good days and not so good days, but focusing on the goals should result in eventual success.

Our firm, ClearWay Advice and Financial Management is a FPA Professional practice.