Month-end close
Month-end close with stablecoin receipts
Updated · 4 min read
In short
Closing a month with on-chain receipts adds three checks to the usual close: every transfer in and out is resolved, each wallet's on-chain balance at the last block of the month ties to its ledger account, and any price move away from $1.00 has been reviewed under the entity's policy.
Why the usual close misses stablecoins
A bank account has a statement. A wallet has a public history instead, and nobody sends it to the bookkeeper. Receipts land without a bank feed, outflows (bill payments, transfers to an exchange, conversions) leave without one, and small gas costs move the native-token balance. If only receipts are recorded, the wallet account will not tie at month end.
The checklist
- 01
Every receipt resolved
Each inbound transfer is matched to an invoice, classified as something else (own transfer, loan, owner contribution, refund), or parked in suspense with a note.
- 02
Every outflow classified
Bill payments, transfers to the business's own wallets or exchange accounts, and conversions to USD. Own transfers move location only.
- 03
Everything posted
Payments against invoices, and journals for fees, settlement differences and disposals, all in the ledger with the transaction hash on each.
- 04
Wallet balance reconciliation
For each wallet and token: the on-chain balance at the last block of the period against the ledger account balance, with any difference explained.
- 05
Gas-token balance
The ETH, SOL or TRX held for fees, reconciled the same way, with its carrying amount.
- 06
Depeg review
Any receipt valued away from $1.00, or any period-end price below $1.00, reviewed under the entity's measurement policy.
- 07
Sign-off
Preparer sign-off, then the reviewer's if the engagement has one.
Cut-off: which block ends the month
A receipt belongs to the period in which the business obtained control of the asset. For a self-custodied wallet that is the block timestamp of the confirming block; for an exchange account it is when the account was credited. Block timestamps are in UTC. A transfer confirmed at 23:40 in New York on 31 October is in November in UTC, so the entity states a time zone for its cut-off and applies it every month.
The balance to reconcile is the balance at the last block at or before the period end, in that same time zone. Every chain can be queried for it; explorers show it too.
The wallet reconciliation, worked
| Base wallet, USDC | Amount |
|---|---|
| On-chain balance at last block of October | 24,310.00 |
| Ledger account balance at 31 October | 21,810.00 |
| Difference | 2,500.00 |
| Explained by: receipt 29 Oct, no matching invoice, not yet recorded | 2,500.00 |
| Unexplained | 0.00 |
The 2,500 receipt with no invoice goes to an unidentified receipts account until someone classifies it. That keeps the wallet account tied without guessing.
| Account | Debit | Credit |
|---|---|---|
| Dr USDC wallet [classification per your policy] | 2,500.00 | |
| Cr Unidentified receipts (suspense) | 2,500.00 |
When classified, the suspense is reclassified to AR, a customer prepayment, a loan, an owner contribution or a liability to return misdirected funds.
Price review at period end
What happens when a stablecoin trades below $1.00 depends on the classification the accountant chose. Under ASC 350-30 (intangible at cost) any print below carrying value, including intraday, is an impairment with no reversal. Under ASC 350-60 the asset goes to fair value through net income each reporting date. As a financial asset at amortised cost, a credit-loss allowance (ASC 326) applies instead. The review step is where the preparer confirms the policy was applied.
Late receipts into a locked month
Sometimes a payment for October is found after October is locked in QuickBooks or Xero. The ledgers refuse entries dated before the lock or closing date. The usual choice is to record it in the first open period, with a note in both months' close files. Reopening the prior month is the reviewer's decision, not the preparer's.
What goes in the close pack
- Receipts and outflows with transaction hashes, chain, token contract, block time and the USD value with its price source.
- Why each receipt was matched to its invoice, and who confirmed it.
- Ledger references for every entry posted.
- The fee schedule and any settlement or disposal gains and losses.
- The wallet balance reconciliation for each wallet and token.
- The accounting policy in force, with its citations.
- Sign-offs and an extract of the audit trail.
Gladpaid computes this checklist and the reconciliation per wallet, and produces the close pack as a workbook and PDF. The close is included on every plan. See Month-end close and The close pack.
Questions
What date does a stablecoin receipt belong to?
The period in which the business obtained control: the block timestamp of the confirming block for a self-custodied wallet, or the credit time for an exchange account. The entity sets the time zone for its cut-off and applies it consistently.
How do I reconcile a crypto wallet at month end?
Compare the on-chain balance at the last block of the period with the ledger account balance for each wallet and token, and explain every difference.
What happens to a receipt found after the month is locked?
QuickBooks and Xero refuse entries before the lock date. It is usually recorded in the first open period with a note in both months; reopening is the reviewer's decision.
Why won't the wallet balance tie if I only record receipts?
Outflows, own-wallet transfers, conversions and gas also move the balance. All of them have to be classified for the account to reconcile.
Sources
- [1]AICPA practice aid, Q&A 4–7 (impairment) and auditing section on cut-offSettled
- [2]ASC 820 measurement date; day-close pricing only as a documented policyUnsettled
- [3]Deloitte Heads Up: ASU 2023-08 (ASC 350-60 fair value)Settled
- [4]ASC 606-10-45-2 (customer prepayments) for reclassified suspense receiptsSettled
- [5]Xero Developer: lock dates on OrganisationSettled
This guide describes how published standards and guidance treat these transactions, and where that guidance is unsettled. It is not accounting, tax or legal advice. The treatment for your business is your accountant's decision.