When your accountant asks “how much is operating reserve versus strategic reserve,” they are not being difficult. They need category-level figures to match your general ledger against actual custody holdings.
The single-line-item problem
Many founders record all reserves under one account — “Reserves” or “Treasury Holdings.” This works until reconciliation, when the accountant must verify that the total on your books matches the sum across wallets, escrow accounts, and bank balances. Without sub-categories, a discrepancy in one wallet is impossible to isolate.
What categories typically look like
For early-stage companies with offline wallets, we commonly see four categories:
- Operating liquidity — 60 to 90 days of runway, accessible within 48 hours
- Strategic reserve — 6 to 12 month buffer, accessible with board approval
- Escrow or milestone holdings — Locked until contractual conditions are met
- Contingency — Reserved for specific risks, accessed only by defined authority
Each category should map to one or more custody arrangements with documented signing authority.
What to prepare before your accountant calls
- A list of all wallets and accounts with their designated category
- Signing authority for each arrangement
- Last reconciliation date and any known discrepancies
If you cannot produce this list, a segregation plan engagement is likely the right next step. Contact us to discuss your structure.