How To: Select or Update 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.

4 steps
8 seconds

Cryptio

Navigate to Cryptio workspace, \ \ Click the "⚙️" icon in upper right hand corner to open workspace settings panel.

**Select cost basis methodology of choice.**\ \ It is recommended to track per-wallet in order to align with anticipated regulatory changes. In addition, tracking on a universal basis can create challenges when attempting to utilize reporting features and cost basis errors become prone and harder to correct in the long term.

Tip! FIFO per wallet is the most compliant recommended cost basis method per discussions with auditors.

**Alert! Revenue Procedure 2024-28:** Newly adopted in 2024, affects tax reporting for U.S.-based companies beginning January 1, 2025. Under this new requirement, companies must use the FIFO (First-In, First-Out) per wallet replacing the previously allowed "universal" approach.

**Select a principal market price provider and multiple fallback options.** 1. **Kaiko** is our data provider for all exchanges and aggregated sources such as coingecko. Cryptio computes all pricing in-house using a 5 min VWAP interval for any available exchange data which provides an auditable pricing calculation to further support your balances. 2. If a price is not available on your pricing provider of choice, you can elect a fallback pricing provider to capture missing prices. A typical pricing provider selection and fallback option may look something like this: **Main: Coinbase → Fallback 1: Kraken → Fallback 2: Coingecko**

Cryptio offers the following key principal markets for digital asset pricing to customers. Each has a distinct price aggregation method that customers can choose from based on their needs and applicable standards. These methods are the following: **CoinGecko (hourly):** This option aggregates prices on Coingecko by collecting trade data every hour from over 400 exchanges worldwide by considering trading volume, liquidity, and the reliability of exchanges. They utilize a weighted average price from this data. This platform covers the largest amount of assets, roughly more than 6,000 digital asset pairs. The hourly update ensures that users receive timely data, reflecting the fast-moving nature of the cryptocurrency market. They also monitor exchanges for anomalies such as inflated trading volumes or manipulated prices. By excluding exchanges that engage in wash trading or other fraudulent activities. Prices are derived at the end of each hour. **Legacy CoinGecko (daily):** The same methodology and scope of assets listed above but on a daily average timeframe. Prices are derived at the end of each day. **Coinbase:** Coinbase's price aggregation method involves real-time trade data from its own platform. This data includes the supply and demand within the exchange. When users place orders to buy or sell a cryptocurrency, these orders are added to the order book. Coinbase uses an order-matching engine to match and execute buy and sell orders, and the resulting transactions determine the market price of the cryptocurrency on the platform. The platform covers a broad range of digital asset pairs, though the number can vary based on market availability and regional restrictions. As an exchange, it provides constant live pricing data, reflecting immediate market values of digital assets on this specific exchange. **Binance:** Binance aggregates prices by considering trade data from its own platform. It provides live pricing data, ensuring users have real-time access to the prevailing market dynamics on the Binance platform. Binance’s coverage includes over 500 digital asset pairs. **Binance US:** The same pricing methodology as Binance, however with a smaller scope of assets covered. It aggregates pricing data from its own platform. In the event that the principal market chosen by the customer does not provide a price for a specific asset, Cryptio will flag this to the user. Users have the ability to manually price assets as needed.

Alert! Auditors prefer exchange pricing over aggregated data providers such as Coingecko. Exchanges provide the most granular of pricing when auditors are completing testing procedures. It is important to select an exchange pricing provider that is available in your geographical location.

**Last, Select Currency and Timezone for transaction reporting.**