As more and more people are utilizing cryptocurrency, the better the tax implications of cryptocurrency are understood. This is likely due to tax offices worldwide giving clarity on the rules and regulations, but it doesn’t mean that everyone feels confident navigating such a potentially confusing part of their finances. If you’ve made the decision to move forward with a cryptocurrency accountant as we head into tax season, it’s important to do your research beforehand. Not every accountant has the same experience and understanding of cryptocurrency, and you’ll want to find the best option to ensure accuracy. Ask yourself the following before deciding on an accountant.

Do They Already Have Crypto Clients?

Although all accountants have to start somewhere, it doesn’t mean that you need to be the guinea pig. Make sure that the accountant that you’re considering already has experience dealing with crypto tax laws and regulations. Feel free to ask them specific questions such as the percentage of their client base that are crypto investors. If your level of trade is complicated, this percentage should be on the higher side. 

Do They Understand Crypto Income?

Any valuable cryptocurrency accountant knows that crypto can be taxed as either income or capital gains. If you find a potential accountant but they are unable to explain how crypto is taxed at either level, you’ll want to move on. This is especially the case if you’re dealing with staking, mining, airdrops, DeFi, etc. Despite the nuances with both capital gains and income, this is the foundation of many of the newer and more complicated transactions. 

Does Your Accountant Trade Crypto?

As you become more interested (and invested) in trading cryptocurrency, you’ll want to make sure to find a cryptocurrency accountant who shares your passions. Ideally, they’ll be trading and are active in the market. The more experienced your accountant is on a personal level, the more confidence you should have that they will do an excellent job as your chosen accountant. If you’re trading at a high value or involved in niche projects, it becomes more important that your accountant has firsthand experience. 

Does Your Cryptocurrency Accountant Use Crypto Tax Software?

As you likely know by now, crypto taxes are complicated for a myriad of reasons. Even the sheer volume of data and manual work that’s required to generate accurate tax totals can be overwhelming. While it’s possible to produce accurate totals by hand, ideally, your crypto tax accountant will leverage software. This allows for easy and accurate reports, giving you extra peace of mind. 

Founder’s CPA Can Help

We know that as tax season quickly approaches, you might feel intimidated about finding a cryptocurrency accountant. Our team of experts at Founder’s CPA is highly experienced in this realm and can provide you with invaluable guidance this tax season. For a free consultation and to learn more, get in touch with our team at Founder’s CPA today! 

Curt Mastio
Post by Curt Mastio
Nov 22, 2023 3:35:40 PM
Curt Mastio started Founder’s CPA in 2017 and currently serves as the Managing Partner of the firm. After obtaining both his Bachelor’s and Master’s degrees in accounting from the University of Illinois in Urbana-Champaign Curt started his career in Big Four public accounting. Shortly thereafter Curt served as the Chief Financial Officer of Storage Squad began his stint as an Adjunct Instructor at Northwestern University’s Farley Center for Entrepreneurship and has been teaching Accounting & Finance to undergraduate students for 6+ years. In his current role Curt oversees strategy, operations, and business development at Founder’s CPA. Further, Curt has experience working directly with 200+ startups and small businesses providing accounting, tax, and outsourced CFO services. His industry expertise lies in the SaaS, Blockchain, Marketplace, and Fintech industries. He has served as a key advisor working directly with startups that range from pre-revenue to companies generating over $30 million dollars a year in revenue. Lastly, he serves a key role working directly with the firm’s clients that have collectively raised over $200 million in venture capital funding to date. Curt is also an active advisor, mentor, and investor in the startup ecosystem. He has facilitated numerous workshops, webinars, and presentations to incubators and other startup-centric organizations. He is also an active mentor for Techstars in both Chicago and Iowa. Outside of his daily professional duties Curt is actively involved with Beat the Streets Chicago and was a founding member of its Young Professionals Board. His efforts in both leadership and community involvement were recognized when he was awarded the Illinois CPA Society’s Outstanding Young Professional Leadership Award in 2020. He was also a panelist at their annual conference in 2022 where he spoke about his experiences starting and operating a public accounting firm. He maintains an active Certified Public Accountant designation that he obtained in 2014. Outside of work, Curt can be found spending time with his friends & family including his dog Rufus. His hobbies include golf, boating, cooking, reading, and attending sporting events & concerts.