How to automate accounting for NFT transactions on Binance Smart Chain

Non-fungible tokens (NFTs) have emerged as a popular asset class in the crypto world, unlocking a world of opportunities for artists, musicians and collectors to buy, sell, and trade digital art and collectibles. One of the most popular blockchain platforms for NFTs is Binance Smart Chain (BSC), which offers low fees, high-speed transactions and a thriving ecosystem of marketplaces.

How to automate accounting for NFT transactions on Binance Smart Chain

While the potential for profit in the world of NFTs is tempting, the prospect of tracking financial transactions can be complicated, particularly when it comes to taxes. Fortunately, there are ways to automate accounting for NFT transactions, allowing you to focus on what really matters: creating and selling art. Here’s how.

Royalties

Royalties are a core component of NFT transactions. Every time the NFT changes hands, the creator is entitled to a percentage of the sale. To automate royalty payments, you can use smart contracts on BSC. With smart contracts, the NFT creator can program their royalty percentage, and the smart contract will automatically distribute the payments to their wallet whenever the NFT is sold. This eliminates the need to manually track each transaction.

Minting

Minting is the process of creating an NFT on BSC. To automate the minting process and reduce the cost of gas fees, you can use batch minting tools. These tools allow you to create multiple NFTs at once, rather than creating them one-by-one. This can drastically reduce gas fees and save you time.

Paying Gas Fees

Gas fees are a necessary evil when it comes to NFT transactions on BSC. To automate gas fee payments, you can use gas tokens. Gas tokens are a type of cryptocurrency that can be used to pay for gas fees. By purchasing gas tokens in advance, you can save money on gas fees and eliminate the need to manually pay for each transaction.

Popular Marketplaces

When it comes to selling NFTs, there are a variety of marketplaces to choose from. The most popular marketplaces on BSC include OpenSea, BakerySwap, and Treasureland. By using these marketplaces, you can reach a wider audience, automate the selling process, and track your sales and analytics in one place.

Recording Entries

To automate the recording of NFT transactions, you can use blockchain accounting software. Blockchain accounting software automatically tracks and records transactions on the blockchain, eliminating the need for manual tracking. This software can generate reports and analytics to help you understand your finances and make informed decisions.

Taxes

Taxation in the world of NFTs can be complex and varies depending on your jurisdiction. To automate tax calculations, you can use tax calculation tools. These tools automatically calculate taxes owed based on your sales and can generate reports that can be used for tax purposes.

Financial Statements

To automate the creation of financial statements, you can use accounting software that integrates with your bank account and other financial platforms. This software automatically categorizes transactions and generates balance sheets and income statements. This information can be used to provide valuable insights into your financial performance and help you make informed decisions.

Conclusion

Automating accounting for NFT transactions on Binance Smart Chain can save you time, money, and headaches when it comes to tracking your finances. By using the tools and platforms mentioned in this article, you can streamline your accounting process and focus on what really matters: creating and selling amazing NFTs.