Overcoming Crypto Accounting: How R3gen Finance Implements Solutions for Web3 Founders

Date: April 16th, 2023

r3gen finance is reshaping web3 founders' approach to financial management in the blockchain. They handle all financial tasks, boosting founders' focus on key goals. In my interview with Elliott Watts ACA , r3gen finance's Co-Founder, we explored his crypto accounting journey. Our talk revealed their aim to merge financial expertise with cryptocurrency's innovation. Elliott discussed navigating crypto finance complexities and his team's creative methods.

Could you start by giving us an overview of r3gen Finance and its unique position in the crypto accounting sector?

Elliott Watts (EW): Absolutely, and thank you for having me. r3gen Finance was born out of a clear gap in the market for professional financial services tailored specifically for the Web3 space. We realized early on that the existing accounting and financial operational services weren't cutting it for crypto-native projects.

Our mission is to let founders focus on their strengths by offering full financial services. We provide an off-the-shelf finance team for hire, focusing on bookkeeping, financial reporting, and financial operations support. r3gen has supported many leading crypto projects such as Treasure , Squid, Enzyme , and Swell Labs to name a few.  These organizations lead in DeFi innovation, facing complex financial challenges. That's where we come in.

Moving on, it's often intriguing to learn what sparks the creation of innovative companies. It sounds like r3gen Finance is filling a vital niche. 

What inspired you to establish the firm, and how has it evolved with the fast-paced changes in Web3?

EW: Our inspiration came from setting up a pioneering financial team at Index Coop, facing challenges like vetting vendors, standing up a bookkeeping function, and generally just enabling a leadership team to make better-informed decisions. These experiences highlighted the need for a service like r3gen. As Web3 evolves, we adapt, refining our services to meet the sector's shifting demands. Our evolution has been about staying ahead of these challenges, and ensuring our clients can thrive.

Into the crypto accounting challenges

And what sort of challenges do your clients face, especially regarding crypto accounting?

EW: Our clients often struggle with getting a comprehensive overview of their financial performance, managing remote teams across various jurisdictions, and preparing compliant financial accounts, among other things. The unique complexities of crypto transactions and the regulatory environment can be daunting. 

One of the major hurdles is the complexity of managing digital assets across various blockchains, coupled with the need for compliance and transparency. For one of our clients: a liquid staking protocol, tracking and managing liquidity pools, staking, and rewards across different platforms can get incredibly complex. Add to this the international aspect of DeFi projects, with team members and operations spanning the globe, and the challenge becomes even more pronounced. 

That's where we step in, to demystify these challenges and provide clarity and efficiency. Our role is to simplify these complexities, ensuring smooth and compliant financial operations. 

How did you come across the Cryptoworth solution, and what made it stand out for your crypto accounting needs?

EW: We've experimented with several sub-ledgers over the years. Cryptoworth caught our attention due to its bespoke nature and the reliability of its data. It's not just about having most of the data; it's about having complete, accurate data. Cryptoworth’s adaptability to our clients' needs, its extensive chain support, and its capacity for precise, automated pricing of transactions made it an invaluable tool for us.

Its ability to track liquidity pools and stake rewards accurately is invaluable, something sub-ledgers generally struggle with. Cryptoworth’s adaptability means we can tailor our services to each client's unique needs, providing a level of precision and reliability that's hard to find elsewhere.

"Cryptoworth has been a game-changer for us and our clients. 

Its bespoke solutions and accurate data capture allow us to manage the intricate details of crypto accounting efficiently.”        

Implementing a new solution always brings some expected changes. It would be interesting to hear about the observed improvements.

Since implementing Cryptoworth, what improvements have you observed in your accounting processes?

EW: Our success with Cryptoworth, offering precision, customization, and detailed analysis, has been transformative. For clients like Enzyme , managing treasury assets is crucial. Cryptoworth's comprehensive asset overview and gain/loss streamlining have enabled us to track in more detail pool balances and performance enhancing our financial reporting and management approach.

With so many tools available, certain features make a significant difference in choosing the right one. 

Could you highlight some standout features of Cryptoworth that you find particularly beneficial?

EW: The rule-based categorization and the automation it brings to transaction classification save us a significant amount of time. The integration capabilities, supporting a wide array of chains and exchanges, are crucial. Moreover, the reporting functionality and the ability to filter transactions efficiently are indispensable for us in providing high-quality financial services to our clients.

With the implementation of Cryptoworth, what improvements have you observed?

EW: The improvements have been significant, particularly in terms of efficiency and accuracy. For the liquid staking project, moving to Cryptoworth meant we could offer a clearer, more comprehensive view of their financial status. This has had a tangible impact on their operations, from better-informed decision-making to enhanced transparency for stakeholders.

Future of r3gen finance

Looking ahead, a company's vision and plans are always of interest to those watching its journey.

What are r3gen Finance's plans, and how does Cryptoworth fit into that roadmap?

EW: Our focus remains on assisting founders throughout their business lifecycle, from the initial setup to ongoing financial management. Cryptoworth is a tool in the foundation of this offering, providing the robust data layer we rely on to make informed decisions and offer strategic advice. As we continue to tailor our services to the evolving needs of the Web3 sector, Cryptoworth's flexibility and accuracy are important in our mission to support founders and promote financial professionalism in the crypto space.

To get in touch about financial reporting needs, reach out to Elliot to schedule a call with the R3gen Finance team.