Cryptio's Accounting Fundamentals

Welcome to Cryptio's Accounting Fundamentals

This is a comprehensive guide on optimizing accounting workflows within Cryptio, emphasizing key aspects such as workspace settings for accounting policies, data completeness, transaction categorization, asset management, chart of accounts mapping, and month-end reconciliation. These processes are crucial for maintaining accurate financial records, ensuring controls around compliance, and facilitating efficient audits and external reporting.

Selecting Company Accounting Policies

This section allows you to define the core accounting policies for the company within your workspace. This includes time zone, currency, cost basis methodology and more. An essential first step for ensuring consistent application of these policies across all accounting activities.

Establishing Data Completeness

This section emphasizes the importance of importing all client data sources and transaction data into Cryptio to ensure accurate reconciliation and reliable data.

Importing Data Sources

This is crucial as missing sources will result in an incomplete reconciliation and unreliable data as a result.

Verifying Data Integrity: Audit Readiness Module

Some of the most important criteria for digital asset accountings are data completeness and accuracy, audit-ability, and reliability. The Data Integrity module, part of our Audit-readiness module, is our way to help the industry solve its most complex challenges.

Manage asset categorizations: Asset Module

Asset clustering and valuation are essential for accurate financial reporting and compliance. They ensure that all assets are appropriately categorized and valued, reflecting their true market worth.

Categorization of Transaction Data

Labels are a way to automate the categorization process for your accounting data. While accounts flow to the statement level, labels are at the transaction level. This is a significant reduction in the workflow and reduction of manual intervention which is error prone.

Overview of transaction level data: Transactions

The transactions module will show all of the data imported from your complete list of sources. You will find yourself spending a lot of time here since you can select, edit, filter, review, and export transactions. During the month-end reconciliation the “Needs Review” tab is helpful for identifying transactions missing a label, cost basis, volume, and chart of account mapping.

Facilitating Accurate Financial Reporting: Chart of Accounts

Drives categorization flow of raw transaction data into financial statements like the balance sheet and income statement.

Impairment and Fair Market Value

Revaluation

New FASB guidelines require reporting cryptocurrency FMV at each reporting date. Value changes are recognized immediately in the income statement, aligning with other financial instruments' accounting. This provides real-time market condition reflections in financial reports. Cryptio's revaluation module automates this process, scheduling adjustments based on reporting needs.

For digital assets not under FMV treatment (e.g., NFTs and less liquid assets), the module automatically applies impairment adjustments.