1. What Is an Account Plan?
An account plan is a system where you use your financial accounts to separate your money in categories to organize your finances more effectively.
Millions of individuals, households, self employed, and small businesses worldwide conveniently use this system to manage their money.
In this tutorial we will present an example for a miner who uses GPUs and ASICs and gets paid into his/her Emerald Wallet.
2. Multiple Wallets on Emerald
First, let's start by explaining that Emerald supports multiple wallets. This means you can create your first wallet when you download Emerald (there are different ways of creating accounts explained in our other tutorials) and from there you can create more wallets at your convenience to manage your money in categories.
Below is an example of several wallets created using Emerald Wallet.
The cool thing is that you can actually name your wallets whichever way you want, so it is most convenient to manage your finances!
3. Example of a Miner Who Mines With GPUs and ASICs
For example, a miner in Kazakhstan; who may mine with GPUs and ASICs on blockchains such as Ethereum, Ethereum Classic, and Bitcoin; may have the following account plan:
The logic of this account plan is the following:
a. GPU Mining Income
Since miners want to know the efficiency and profitability of their operations by type of mining gear, our miner may want to separate the income he/she receives from GPU machines into one wallet that may be labelled "GPU mining income".
b. ASIC Mining Income
In another wallet labelled "ASIC mining income" miners may direct all the mining income derived from ASIC machines.
c. Mining Electricity Bills
Because electricity costs are between 50% and 60% of mining activity in proof of work blockchains, our miner may want to separate the funds to pay for those costs in a special wallet that may be named "mining electricity bills".
d. Tax Reserve
As mining is a regular taxable business, and miners may be sole proprietorships or small businesses, it would be convenient to estimate future tax liabilities and establish a reserve wallet to accumulate these funds. This wallet may be called "tax reserve".
e. Surplus in Crypto
The mining activity is a for profit business, and many times miners want to accumulate their retained earnings in crypto so they can profit further from future upside. To segregate these profits and account for them more clearly, miners may create a wallet labelled "surplus in crypto" and go collecting there the portion of their earnings that they wish to keep in cryptocurrencies.
4. Watch More Examples!
For more examples of account plans that may adjust to your personal needs, please watch this video:
Thank you!
To start using Emerald, download it here: https://emerald.cash/download
