Crypto Bookkeeping

Crypto bookkeeping is a service designed for businesses. This service includes monthly crypto reconciliations, along with the creation of journal entries for your accounting ledger. This service is offered exclusively on a monthly basis.

Crypto reconciliations involve matching and verifying cryptocurrency transactions and balances against both internal records and blockchain data to ensure that your data is accurate. This is crucial for generating precise crypto tax reports, which are essential for tax filings.

At Crypto Tax Specialist, every crypto tax client begins with a comprehensive evaluation. This service is completely free and provided before any invoices are issued.

An evaluation includes the following steps:

1. Clarifying the timeframe and extent of the reconciliation.
2. Listing and mapping all relevant accounts.
3. Compiling and structuring your transaction dataset.
4. Evaluating the volume and complexity of the reconciliation.

Using the dataset from the evaluation, we will analyze how many transactions require attention, such as unmatched transfers, pricing discrepancies, and other issues. Based on this analysis, a flat-fee quote will be provided.

Once the proposal is accepted, the service begins with the following steps:

1. Catching your books up to your current activity: We will work with you to reconcile all of your past activity through the latest month. The latest month refers to the last month in which the data is locked in. For example, during October 2024, we would reconcile your September 2024 data and so on. This means by the end of January, you will be all set for the year’s tax filings.
2. Monthly Reconciliations: Each month, we will reconcile your crypto activity. If you open new accounts, simply provide them to us for inclusion in the reconciliation. Our monthly process includes the following steps:
   • We’ll analyze and categorize as many unmatched transfers as possible.
   • You’ll work with a representative to resolve any remaining unreconciled transfers, which will be updated in the dataset.
   • Any unresolved pricing discrepancies will be addressed, if applicable.
   • We’ll prepare detailed tax reports and send them to you for review.
   • Once the reports are approved, you’ll receive an updated tax report covering your full year’s activity, with the latest transactions included.
3. Monthly Journal Entries: Each month, we’ll take data from your dataset and latest tax report to create accurate journal entries for you to upload. These entries can be customized to suit your needs, with options including summarized, detailed, or fully custom entries.
   • Summarized Journal Entries: This option consolidates activity into as few lines as possible. For example, if you paid a vendor five times in USDC, it would be represented by a single line, not five.
   • Detailed Journal Entries: This option provides a line-by-line breakdown of each transaction, preserving full details for your accounting ledger. For instance, if you paid a vendor five times in USDC, there would be five separate lines.
   • Custom Journal Entries: Have specific requirements? Just let us know, and we’ll tailor the entries to meet your unique needs.

Please note that this service is exclusively for crypto bookkeeping. If your business involves fiat transactions, you’ll need to either handle your own fiat bookkeeping or pair this with fiat services from an accounting firm. By keeping your fiat and crypto bookkeeping separate, you can work with experts in both areas and reduce overall costs!