I am in the process of setting up an online shop and I'd like to try Bitcoin (see http://bitcoin.org for details) instead of the traditional credit card and PayPal approach. What would you recommend as a good way to track and report the value of any bitcoins I may hold so that I can submit accurate accounts at the year end? Is it simply the same as a foreign currency, or something else?
Some background notes:
Bitcoin has a lot of volatility within a deflationary currency model
Bitcoin transactions of fractions of a penny are common with bitcoins commonly denoted to 8dp which is unusual for standard accounting software
Thanks for any answers