Entendre integrates with Loop to eliminate hours of manual accounting work

TL;DR: Entendre Finance has integrated with Loop Crypto to streamline the accounting process for accepting payments in crypto. Loop’s off-chain contextual data plus Entendre’s accounting automation leads to hours of saved reconciliation work and makes it simple to apply accounting rules to on-chain transactions.

Introduction

At Loop, our mission is to simplify crypto payments. We make it easy to get paid in crypto and ensure crypto payments fit seamlessly into your existing financial stack. Our newest integration with Entendre Finance closes “the loop” on integrating crypto into a company’s financial stack. Entendre is an AI accounting platform that automates classifying on-chain activity and bookkeeping for finance teams. In short, Loop makes it easy to get paid in crypto, and Entendre makes it easy to account for crypto on your books.

On-chain transactions have no context - it’s impossible from looking at a transaction to know payment details like what it was for, when the payment was originally due, or even if it's for multiple periods of service or one. Thus, it's even more important in crypto to make sure your accounting processes are set up to track and reconcile your crypto activity to save yourself hours and frustration reconciling later. Setting up automations now will allow you to close your books on a monthly basis and ensure that everything is in order at the end of the year when it comes time to do your taxes. If you want to go deeper on this topic, we have a whole blog post from Hash Basis’s Mackenzie Patel explaining the nuances of crypto accounting and why a crypto accounting tool like Entendre is critical for scaling your financial operations.

How does the integration work?

For businesses making payments or getting paid in crypto either for one-time payments, invoices, or subscriptions, this integration enables Loop payment information to flow seamlessly into Entendre’s accounting platform. This brings efficiency to the accounting process and removes hours of manual work to reconcile crypto payment transactions to the appropriate account. It only takes minutes to be onboarded with Loop and now with the Entendre integration, setting up your crypto accounting rules just became significantly easier.

Value the integration provides

(1) Saves time by providing you with critical payment details

The integration removes manual review and reconciliation work when you are paid in crypto. When businesses and startups begin accepting crypto, they may do what seems like the simple path - having their customers send funds directly to a wallet. However, beyond one or two customers, this quickly becomes challenging to manage. They see inflows to their wallet and then need to manually decipher each transaction to determine which customer is paying, for which bill, related to what invoice, and for what due date. Not to mention, when someone sends you funds, you run the risk they don’t pay the full USD amount - moving prices means sometimes you’re under/overpaid (pro-tip: Loop converts from USD to the ERC-20 price at the time of payment, ensuring you’re always paid the exact amount).  

For entities focused on scaling, Loop solves this challenge of deciphering on-chain transactions and providing context on each payment. For example, with Loop, there is now visibility to identify a transaction as a $500 monthly subscription payment for the Developer Tier from a specific customer. This already eliminated a significant amount of manual work, but there was still a missing piece: accounting reconciliation.

With Loop plus Entendre, the accounting step has been automated. Via the integration, Entendre is able to query data from Loop once the client provides their API key. Entendre is then able to attach critical data to each transaction and layer on accounting rules. That $500 transaction can now be automatically classified and assigned to the revenue account immediately after payment is made. No manual intervention is required.

(2) Automates complex accounting

The complexity of revenue accounting varies based on transaction types, subscription frequencies, and transaction amounts. This complexity requires a dynamic solution that can differentiate between immediate revenue and deferred revenue while ensuring accurate financial reporting. In non-accountant speak, this means that if you get paid $1,000 today, you may not be able to book that full $1,000 as revenue. If that $1,000 is for an annual subscription, some of that revenue is deferred or must be spread out over the course of the year.

One of the critical unlocks of this integration is that Entendre ingests payment frequency details from Loop. Was that 500 USDC a one-time payment for an item or was it an upfront payment for an annual subscription? Before, you would have had no idea without spending hours scouring transaction hashes and going back and forth with customers. With Entendre’s integration with Loop, this major challenge is solved. 

Businesses using Loop to collect one-time or recurring payments have a wealth of information attached to each transaction that flows through Loop. Once the business enables the integration, that information can now be appended to transactions in Entendre and rule automation built on top. This means that you can automate the application of revenue rules. Since you know that 500 USDC payment was related to an annual subscription, Entendre’s rule engine identifies this and, as each day passes, can recognize a portion of the subscription amount as revenue.

3) Unlocks business insights

Entendre plus Loop provides more visibility into your revenue operations and helps you dive deeper into your business. Understanding the lifetime value of your customers when you’re getting paid in crypto is no longer a daunting task that requires hours of matching and wrangling data in a spreadsheet. With this integration, you are able to easily disaggregate your revenue data to understand how your business is operating at the customer level. With expense data already tracked within Entendre, businesses now have the ability to easily pair revenue and expense data to understand key metrics about their business health.

How to get started?

If you’re already a customer of both Entendre and Loop, the process takes seconds. Simply input your Loop API key into Entendre’s front end to permission the integration and enable Entendre to ingest your Loop payment data. For those interested in onboarding to Entendre and/or Loop, let’s talk. We’ll have you set up in minutes on a quick onboarding call.

____________________________________________________________________________________________________________________________

Loop Crypto

Loop Crypto makes it simple to collect and pay in crypto by allowing companies to turn on autopay and schedule payments. Built by web3 veterans, Loop unlocks payment automation to reduce customer churn and eliminate time-consuming payment collection and follow-up. By connecting on-chain and off-chain data, Loop streamlines invoice reconciliation, accounting, and fits seamlessly into your financial stack.

Loop crypto is programmable payments.

Are you ready to supercharge your payments? Book a call with Jeff, our Head of Business Operations, or head to our docs to learn more.

Stay in the Loop.

Twitter | Medium | LinkedIn | Blog | Paragraph | Website

Entendre Finance

Entendre Finance is an AI Accounting platform to automate crypto activity and bookkeeping for finance teams. AI Powered Crypto Accounting & Treasury Automate the end to end bookkeeping and accounting for Web3 businesses. Stop wasting human capital on accounting close, revaluations, impairment, mark to market, financial statements, reconciliation. On-chain financial activity & workflows on autopilot.

© Loop Crypto 2024. All rights reserved.

© Loop Crypto 2024. All rights reserved.

© Loop Crypto 2024. All rights reserved.