Benefits of Frequent Financial Reporting for your Cryptocurrency Activity

We’ve been preparing quarterly financial reports for several clients over the past 12 months and have found the reports and process extremely helpful. 
 
The key benefits are:
 
Addressing reconciliation issues during the year in small chunks rather than once at the end of the financial year. This ensures everything is fresh in your mind and you don’t have to think back to what you were doing up to 18 months ago. It also significantly reduces risk with IRD should they ask questions about unknown transactions and allows us to pinpoint variances as they occur.
 
Understand your profitability and plan for tax during the year rather than at the end of the financial year. We can provide you with accurate tax planning and forecasting after calculating your profit.
 
You can adapt and change strategies and learn more about how your activity affects your taxes (i.e., realizing gains will trigger taxable events, compared to only holding).
 
Implementing systems for record-keeping such as exchange trading records and tokens held. You will be operating your activity as a business owner.
 
Have regular contact with us (hopefully a good thing)! If the market changes, or you have an opportunity we can discuss these with you. We don’t double handle your work, for example, if Q1 is prepared, that is then included in the financial statements.
 
We create and manage a custom Cointracking account for you which is more cost-effective because we gather information once. This method will allow us to refresh the APIs on your account and free us from having to load, delete and re-load APIs every quarter.  You will also have the login details so you can manage your quantity reconciliations in real-time (if you choose).  We will be able to do spot checks on specific dates to ensure that your Cointracking balance matches your holdings.  This will limit our need to go back and query you on transactions and balances.  Manual work for non-API exchanges (such as Easy Crypto) will still be necessary.
 
Please let us know if you’d like us to get started. 

Contact Us

Contact us for a call or meeting to discuss any cryptocurrency tax or accounting questions. Our office is in Cambridge, Waikato, or we can arrange a video conference call.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Leave a Reply

%d bloggers like this: