KEY RESULTS
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FEATURES
PARTNER
Hash Basis
Mackenzie Patel is a crypto native accountant who is key in supporting Oogy
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CHALLENGE
Oogy.io is an innovative decentralized application (dApp) that focuses on NFT-based gaming and collectibles. Founded by a team of crypto-native individuals with extensive experience in the crypto space, Oogy has rapidly become a significant player in the blockchain gaming ecosystem. However, despite their expertise in crypto, the founders faced significant challenges when it came to managing the business operations, particularly in accounting and bookkeeping. This use case explores how Integral helped Oogy simplify and streamline their on-chain financial management, leading to significant improvements in efficiency, cost savings, and overall business performance.
Initial Challenges
Oogy's founders, including Bryan Campbell, were adept at navigating the crypto landscape, engaging in activities such as trading, interacting with NFTs, and DeFi. However, running a business presented a steep learning curve, particularly in areas related to business acumen, accounting, and legal structuring. Initially, Oogy relied on a law firm that also provided bookkeeping and accounting services. This approach proved problematic for several reasons:
High Costs: The law firm operated on an hourly billing model, which led to exorbitant costs for bookkeeping and accounting services. This was especially burdensome given the complexity of Oogy's crypto transactions.
Inefficiency: The law firm struggled to handle the intricacies of Oogy's financial activities, such as asset transfers, use of NFTs as prizes, and other unique aspects of their business model. This lack of expertise resulted in significant inefficiencies and errors.
Time Consumption: Bryan Campbell found himself spending approximately 75% of his 20-hour weekly commitment to the business on bookkeeping and accounting tasks. This left little time for strategic activities, such as community engagement and business development.
Data Integrity Issues: The manual processes employed by the law firm led to disorganized records and low confidence in the accuracy of financial data. This was a significant concern, as reliable financial data is crucial for making informed business decisions.
SOLUTIONS
Recognizing the need for a more efficient and cost-effective solution, Oogy began searching for alternatives. Through a networking event, Bryan Campbell was introduced to Integral, a financial management and accounting platform designed specifically for web3 businesses. Integral promised to address the unique challenges faced by crypto-native companies by offering automated solutions for bookkeeping, treasury management, tax compliance, and auditing.
Implementation and Benefits
The implementation of Integral at Oogy brought about several transformative benefits:
Automated Data Collection: Integral's platform allowed Oogy to automate the data collection process by simply inputting their wallet addresses. This significantly reduced the time and effort required to manage financial records. The automation ensured that all transactions were accurately tracked and categorized without the need for manual intervention.
Flexibility in Workflows: Integral had the flexibility in data transference to the ERP - although most companies might sync in transactions, Oogy had almost 500,000 transactions, making it almost impossible to sync into QBO. Mackenzie was about to use the export JE function to create one clean journal entry for the month that she could book.
Real-Time Financial Insights: Integral provided real-time P&L and treasury overviews, enabling Oogy to make faster and more accurate financial decisions. Unlike the previous setup, where monthly financial reports were delayed by weeks, Integral's platform offered immediate insights into the company's financial health. This real-time visibility was crucial for a business operating in the fast-paced crypto space.
Improved Data Integrity: Integral's advanced algorithms and automated processes ensured high data integrity. The platform made it easier to identify and correct discrepancies quickly, giving Oogy confidence in the accuracy of their financial data. This was a marked improvement over the previous system, which relied on manual processes and led to frequent errors and disorganization.
Cost Efficiency: By switching to Integral, Oogy realized significant cost savings. Integral's pricing model was more attractive compared to the high hourly rates charged by the law firm. The efficiency and automation provided by Integral reduced the overall cost of bookkeeping and accounting services.
Customizable Reporting: Integral's platform offered customizable reporting features, allowing Oogy to create custom rules and reports tailored to their specific needs. This flexibility streamlined the financial management process and enhanced organizational efficiency. The ability to generate accurate and relevant financial reports quickly was a significant advantage.
RESULTS
The transition to Integral led to a complete transformation of Oogy's financial operations. Bryan Campbell noted that the time he previously spent on bookkeeping and accounting tasks was drastically reduced, freeing him up to focus on more strategic activities. This shift allowed him to engage more with the community and contribute to the business's creative and developmental aspects.
One of the most significant outcomes of using Integral was the discovery of an overpayment in taxes. With the improved data integrity and accurate financial reporting provided by Integral, Oogy's accountant, Mackenzie, was able to identify that the company had overpaid their tax bill by approximately $100,000. This discovery not only highlighted the financial inefficiencies of the previous system but also underscored the value of accurate and reliable financial data. The potential tax refund represented a significant cash windfall for the company.
Oogy's use case demonstrates how Integral can provide significant value to web3 businesses by streamlining financial operations, ensuring data integrity, and reducing costs. The transition to Integral allowed Oogy to focus on growth and innovation while maintaining accurate and reliable financial records. The automation and real-time insights offered by Integral transformed Oogy's financial management, leading to increased efficiency, cost savings, and overall business success.
For web3 businesses facing similar challenges, Integral offers a comprehensive solution that addresses the unique complexities of crypto transactions. By automating bookkeeping, providing real-time financial insights, and ensuring data integrity, Integral empowers businesses to make better, faster decisions and achieve their strategic goals.