# 💰 Financial reporting overview

In 2024, significant progress was made in developing the DAO’s financial function, ensuring that all on-chain and off-chain transactions are systematically accounted for. Unlike traditional entities, DAOs operate without owners or equity, making it necessary to design a custom accounting framework that aligns with International Financial Reporting Standards (IFRS) where applicable.

To achieve this, the DAO redefined accounting principles to suit decentralized governance, classifying and evaluating hundreds of thousands of blockchain transactions based on accrual accounting. As a result, DappRadar DAO can now present financial data that not only reflects on-chain inflows and outflows but also follows traditional financial reporting principles, providing a clearer picture of operational sustainability.

Operationally, the DAO started 2024 with no active finance infrastructure, but by the year’s end:

| <h3>Finance Initiative</h3>                | <h3>2023 Status</h3> | <h3>2024 Achievements</h3>                                                 |
| ------------------------------------------ | -------------------- | -------------------------------------------------------------------------- |
| Agreements with contractors & contributors | None                 | 9 active contributors, expected to grow throughout 2025                    |
| Operational finance tools                  | None                 | Implemented accounts payable/receivable functions & core accounting system |
| Crypto accounting system                   | None                 | Selected and integrated after extensive testing                            |


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