Ask the Accounting Community

I am working with a company that is creating a gamified e-learning platform. They want to offer reward points to their participants that can be used for monetary benefits. Can anyone provide guidance on the following questions?

• How should we structure the accounting for our gamification feature, where users can convert points and rewards into monetary benefits like partner gift cards or digital currency?
• What kind of financial frameworks and cash flow management strategies do we need to implement to ensure this feature's sustainability and compliance with financial regulations?
• Considering the potential tax implications of offering a feature that allows users to convert rewards into monetary benefits or donations, what are the necessary steps and considerations to ensure compliance with tax laws?
• How should these transactions be reported, and what strategies can we employ to efficiently manage tax liabilities associated with these rewards programs?