Choosing the Right Crypto Accounting Firm for Your Needs

Whether you are engaging in crypto transactions in the USA or internationally, the legal regulations relating to digital assets have a degree of uncertainty. This is owing to the fact that the crypto landscape is evolving all the time with the rapid advances in blockchain technology. As more and more businesses and individuals invest in cryptocurrency due to its massive benefits, the IRS continues to strengthen the regulations surrounding crypto and other digital assets. Therefore, crypto accounting firms with experienced crypto tax accountants who understand this domain well are essential for managing your crypto accounting needs.

1. Differences between a General Accounting Firm and a Crypto Accounting Firm

General accounting firms largely focus on traditional financial management services. If you run a business, your in-house accounting team would already be providing these services to manage your finances. Bookkeeping, tax preparation, and financial reporting services are provided by traditional accountants for cash, stocks, bonds, and fixed assets.

General accountants are highly experienced in handling traditional finances. However, they lack experience in managing digital assets that require unique tax treatments. For example, blockchain-based digital assets such as cryptocurrencies are classified as property according to the tax laws specified for crypto. A crypto accounting firm has crypto CPAs (certified public accountants) who are updated on the laws and regulations put forth by the IRS. A crypto accounting firm also has the necessary resources to track your crypto transactions for bookkeeping and tax filing purposes.

2. Tips to Choose a Crypto Accounting Firm

If your business is heavily involved in crypto transactions, hiring a crypto accounting firm to manage your crypto taxes and financial records is key to maximizing the benefits you gain out of adapting this financial strategy into your business’s future. Here are the steps to follow when choosing a crypto accounting firm:

• Make sure that the crypto accounting firm you contact has experience in cryptocurrency taxation and offers a wide range of services in crypto tax planning, financial reporting, crypto bookkeeping, and compliance support.
• At an initial consultation, discuss recent legal updates on cryptocurrency laws to see if your potential crypto accountant is knowledgeable on regulations for digital assets. You can compare what crypto accountants at different accounting firms say regarding certain laws and assess which firm has the most experienced crypto accountants.
• Ask plenty of questions on how crypto accountants would overcome challenges during the tax season and check if they are ready to address your issues. Client support is key to managing your crypto finances effectively with a crypto accounting firm.
• Discuss fees for crypto accounting services you are interested in early on and clearly communicate your expectations as either a business owner or an individual crypto investor.
• Above all, check client testimonials and reviews for the crypto accounting firm that you are interested in. Also, check whether the firm has experience in areas where your business largely focuses on.

3. Partner with Crypto Tax Experts

Cryptocurrency adoption is growing rapidly, with the global cryptocurrency market projected to reach $2.73 billion by 2027. These numbers emphasize the importance of accurate crypto financial management.

A specialized crypto accounting firm offers customized crypto accounting solutions to suit your requirements as an individual investor or a business owner. At OnChain Accounting, we secure your crypto future by maximizing returns from crypto transactions with the integration of advanced blockchain tools and experienced crypto accountants. Schedule a free initial consultation now to get started!