Bitcoin as Payment Method: Practical Guide for Billing and Treasury
What Changes with the Bitcoin Law Taking Effect
On September 7, 2021, the Bitcoin Law took effect and with it came the official launch of Chivo Wallet, the government's digital wallet for BTC and USD transactions. From that date forward, businesses with the necessary technology are required to accept Bitcoin as a form of payment. This is not optional — it's a legal obligation.
For many business owners, the first reaction was concern about Bitcoin's volatility. But Chivo Wallet includes a feature that addresses that problem at its core: automatic and immediate conversion from BTC to dollars. In practice, this means you can receive a Bitcoin payment and have dollars in your account within seconds, without exposure to crypto market fluctuations.
What does change, and where many businesses have struggled, is in how to record and document these transactions. Billing, treasury, and accounting all need to adapt to this new payment flow, and that requires clear processes from day one.
How It Affects Your Billing and Treasury
The first impact is on sales receipts. If a customer pays you with Bitcoin, your Tax Credit Receipt (CCF) or invoice must correctly reflect that payment, including the BTC/USD exchange rate used at the time of the transaction. It's not enough to record the dollar amount — the receipt must document that payment was received in BTC and at what rate it was converted.
Regarding treasury, you now face a decision that didn't exist before: do you convert immediately to dollars, or keep part of the funds in Bitcoin? Each option has different implications. Immediate conversion eliminates volatility risk and simplifies accounting. Holding a BTC position can generate gains if the price rises, but also losses if it drops, and the accounting treatment becomes more complex. For most SMEs, immediate conversion is the most practical and safest option.
Bank reconciliations are also affected. There's now a new flow to reconcile: dollar deposits arriving in your bank account from BTC→USD conversions made through Chivo Wallet. These movements must match the receipts issued and the cash register records.
Steps to Operate Correctly with Bitcoin
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Download and configure Chivo Wallet with your business data. Register your NIT and NRC on the platform so transactions are linked to your company. Verify that automatic conversion is enabled if your policy is to operate in dollars.
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Define an internal treasury policy. Before receiving the first BTC payment, your business needs a clear decision: is everything converted to USD immediately, or is a percentage retained in Bitcoin? Document this policy and communicate it to everyone involved in fund management.
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Train your cashier and accounting team. Staff receiving payments need to know how to process a Bitcoin transaction, how to verify the payment was received correctly, and how to issue the corresponding receipt. The accounting team, in turn, must understand the procedure for recording these transactions and performing monthly reconciliations.
Dates and Recurring Obligations
The obligation to accept Bitcoin began on September 7, 2021, the date Chivo Wallet became available for download and use.
But beyond that initial date, there are recurring obligations. At each month's close, you must reconcile the movements recorded in Chivo Wallet with your accounting records, ensuring every BTC payment has its corresponding receipt and that USD conversions are properly documented.
At the annual fiscal close, all Bitcoin transactions must be reported in the income tax return. This includes both payments received and any gains or losses generated if you held a BTC position during any period.
Operating with Bitcoin Doesn't Have to Be Complicated
The key is establishing clear processes from the start. If you define your treasury policy, properly configure your wallet, train your team, and maintain organized transaction records, operating with Bitcoin becomes just another part of your accounting routine.
If you need help setting up proper records, defining your BTC management policy, or training your team, at Contabilidad Hidalgo we have experience guiding businesses through the transition to digital asset operations. We can help make compliance straightforward with no surprises when it's time to file.
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