The rise of crypto
In October 2021, the worldwide crypto market hit $2.19 trillion. That’s equivalent to the 8th largest economy in the world. Along with that, the average daily cryptocurrency trade volume rose dramatically to $112 billion per day. That means there’s currently a record number of crypto trades that need to be filed for taxes.
For accountants ranging anywhere in size from sole practitioners to large mid-size firms, this could be an amazing opportunity to increase your revenue.
Calculating crypto taxes
Crypto taxes can be a pain. There’s little to no guidance on how to complete them accurately. Laws and regulations are not completely transparent and change year after year. Having to keep up with changing guidance makes crypto taxes feel like a second job. If you use a spreadsheet to complete them, they could take days to finish.
With crypto, there can be thousands of daily taxable transactions. And if you do taxes manually on a spreadsheet, that means you’ll be scanning, inputting, and manually calculating taxes for thousands of transactions. Not to mention the difficulty to calculate some of the transactions. For example, calculating capital gains. You’ll have to work out the cost basis between the different pools matching against future transactions and calculating part disposals. This leaves you virtually no time for anything else but to work with only a handful of clients.
What’s the solution?
A tax tool will reduce the amount of time it takes to calculate transactions and taxes by automating the entire process. You can quickly import the data from the exchanges and wallets and let the tax tool calculate the taxes for you - completely hands-free. There’s no more going back and forth between a million spreadsheets, screenshots, statements and emails.
But with the right tool, crypto taxes can be just as easy if not easier than any other type of tax work. Using a crypto tax tool rather than a calculator will simplify taxes so that there’s no more going back and forth between a million spreadsheets, screenshots, statements and emails. You’ll be able to easily sync your client’s trade date and get a complete picture of all their crypto activity. And once their crypto exchanges and wallets are connected, you can import it all to calculate the totals needed for tax purposes. It really is that simple.
Koinly: Reliable & accurate crypto tax reports for your accounting clients
Koinly is the fastest and most reliable way to calculate your clients’ crypto taxes with fully tax office compliant reports generated within minutes. Koinly saves your firm time and money, to help you capture a new market and clients, and to make you a trusted, reputable crypto advisor.
Our dedicated accountant platform allows you to manage multiple clients from a single Koinly account - tracking crypto trades in dedicated, secure portfolios - all while being HMRC, ATO, and IRS Tax Office compliant.
- Time-Saving Software - Simple, easy-to-use dedicated accountant platform with a worldwide product support team
- Compliant tax reports for over 20+ countries
- 17,000+ crypto currencies
- Connect to over 350 exchanges
- Add as many clients as you need!
You also get access to Koinly’s Tax Directory where you get listed as a provider of crypto tax services and attract high paying crypto leads.