Digital Asset Accounting
Although there is no special standard for cryptocurrency accounting, the accounting of cryptocurrencies can still be based on the current International Financial Reporting Standards (IFRS). In choosing the right approach, it is important to understand the cryptographic activity of a particular company, i.e. whether the company uses cryptocurrency as a means of payment or invests, trades, stakes or issues cryptocurrency instead.
We are well versed in blockchain technology and speak the same language as cryptographic companies. We can safely say that we serve cryptocurrencies, because as our customers develop, so do we, adapting our knowledge and technological solutions to the rapidly evolving business world around us.
Every cryptocurrency transaction that results in capital gains or losses is considered a taxable event and thorough trading and financial reporting documentation are important for accurate gain/loss calculation. For some corporate clients, this can involve hundreds or even thousands of transactions over the course of a year, quickly becoming a complicated and confusing accounting situation.
“NKC has been a great partner to Blockdaemon. They are very responsive to our needs and meeting deadlines. We have found the team extremely knowledgeable with strong accounting expertise within our sector, excellent communication skills and flexibility. We at Blockdaemon appreciate all the hard work and continued dedication from the NKC team.”
Whatever your level of cryptocurrency involvement, we can assist in unravelling a complex array of crypto transactions, determine your net gains/losses, and assist you with the relevant financial reporting.
We work for companies involved in blockchain and infrastructure platforms connecting institutions and developers to leading networks. Our team of experts have a number of years' experience accounting for Digital Currencies. We prepare monthly staking revenue reports on numerous cyber currencies. We maintain the token registers and calculate unrealized and realized gains/ losses of these crypto tokens. We process all transactions on a monthly basis and prepare monthly reports for corporate management and their funders.
Our back-office support services would include:
Preparing monthly staking sheets to calculate all digital currency movements in the period.
Maintain a digital currency token register for each cryptocurrency held on a FIFO basis to allow accurate calculations of unrealised and released gains/(losses).
Maintain impairment sheets on all digital currency tokens for US GAAP purposes.
Liquidity pool transaction tracking.
Organize transactions, apps, wallets, exchange accounts and data files into manageable connected systems and processes, and to understand the tax implications of historic and future activity.
Our professionals are experienced in a variety of currencies. We also have experience with blockchain and other distributed ledger technologies. Our dedicated team understands the complex challenges that companies face with digital currencies and the underlying technology, as well as the compliance requirements associated with these new and evolving markets
As keeping track of crypto activities for accounting and tax purposes is a very difficult task and existing software and applications do not cover all aspects of these transactions our team has developed tailor-made solutions for our Clients allowing us to cover all aspects of digital currency reporting and record-keeping for accounting and tax purposes.
If you are a corporate looking for support on crypto financial reporting and would like to discuss how we might be able to assist, please contact any of the Digital Asset Accounting Team.
