As a cryptocurrency trader, we understand that your bookkeeping requirements can be complex and time-sensitive. That's why we take the initiative and reach out with regular updates regarding your digital assets' accounts. Have urgent queries that can't be put on hold? Rest assured, we'll get back to you in one business day or less.
Our platform empowers you to automate data inputs from most major cryptocurrency exchanges to evade common errors. We collaborate with partners like Binance, Coinbase, Bitfinex, and Kraken—ensuring your financial records are always precise and up-to-date.
Say adieu to stacks of confusing records and labor-intensive manual tracking—we automate inputs straight from your linked trading accounts. Gain insights from a centralized dashboard, allowing you to easily comprehend the state of your crypto trading business and make data-driven decisions.
DR. BUKKY KOLAWOLE
The accounting process for cryptocurrency transactions presents some unique challenges as opposed to traditional transactions. Cryptocurrency operates on a decentralized network known as blockchain, and the value of these digital assets can fluctuate wildly, which creates complexities in accurately capturing their true value.
Typically, each cryptocurrency transaction must be recorded as a separate line item for accounting purposes. The transaction value must be evaluated in the relevant fiat currency (like U.S. dollars or euros) at the time of each transaction. This practice is atypical in traditional accounting where entries are not as highly detailed and are valued at a stable currency.
In some jurisdictions, cryptocurrencies are treated as intangible assets for tax purposes, implying you need to record gains or losses as asset values fluctuate. However, in some other jurisdictions, they can have a legal tender status, making the treatment different. All these factors contribute to a more complex accounting process for cryptocurrency transactions compared to traditional ones.
Bench Accounting can significantly assist you in handling your tax management for cryptocurrency trading. We have a team of dedicated bookkeepers and tax professionals who are proficient in cryptocurrency trading regulations and tax implications. They will track your crypto transactions, manage your records, calculate gains or losses, and prepare the necessary tax reports. With Bench Accounting, you can focus on optimizing your trading strategies while we ensure your activities comply with tax laws and regulations.
Trading in cryptocurrencies, given its relatively recent emergence, is subject to a variety of financial regulations, including Anti-Money Laundering (AML) and Know Your Customer (KYC) rules. The IRS also considers cryptocurrencies to be property, so capital gains tax applies. It's important to report gains and losses accurately to avoid penalties.
Bench Accounting can assist in numerous ways. We offer comprehensive bookkeeping services, ensuring your financial records are up-to-date and accurately reflect your cryptocurrency transactions. You also get access to a dedicated team of experts who are well-versed with the unique challenges of the crypto industry and financial regulations surrounding it.
Moreover, we can also play a strategic role in your tax planning and filing. By routinely maintaining your books, we can help you determine your capital gains or losses from your crypto transactions and help ensure you comply with all relevant tax obligations. Hence, with Bench Accounting, you can navigate the complex crypto regulations with ease and confidence.
Nope! All bookkeeping is completed in-house.
Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.
We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.