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How To Find A Good Crypto Accountant

Supply Shock

There exists a need, and that is "cryptoaccountants."


According to Pew Research Center, 16% of Americans say they have invested in, traded, or used a cryptocurrency.


With 209 million people over 18 in the US, that's 33.4 million people who need to report cryptocurrency on their tax return, and that number is increasing with adoption. In comparison, according to the AICPA 2021 Trends report, the number of new accountants entering the field is on the decline, the lowest it's been in 13 years, to make matters even more dire, the AICPA estimates that 75% of todays public accounting CPA's will retire in the next 15 years. Thus, demand for accountants in general will increase significantly over the next decade.




If you've ever tried to find an accountant who's familiar with crypto, you'll know they are far and few between. With only 624,000 registered tax preparers in the US, assuming 16% of them have also ever invested in, traded, or used a cryptocurrency, that leaves less than 100,000 tax preparers who have any real idea about crypto. There simply aren't enough knowledgeable accountants out there to handle the demand.




Because of this, crypto friendly accountants and CPA's are able to charge massive premiums for their service and, unfortunately, the juice isn't always worth the squeeze. Many accountants billing themselves as able to handle cryptocurrency actually have no idea and rely heavily on software that doesn't fully work. The end result? Large accounting bills, followed by incorrect figures and unnecessary tax burdens.

 

Finding A (Good) CryptoAccountant


So how can I spot a crypto accountant that actually knows what they're doing? Here's a list of questions to ask when interviewing a potential accountant.

1. What chains do you handle?

2. Do you accept crypto as payment?

3. What software do you use?

4. What is your fee?

5. When can I expect you to finish?

6. Will you go over it with me when you're done?

7. What kind of audit protection/assurances do you offer?

8. Do you own any crypto/NFT's?

 

The Importance of Planning

No two people are alike, and neither is their transaction history or tax situation. If you do a lot of NFT trading on Tezos, for example, look for accountants who specialize in Tezos. Understandably, there may not be many out there that do, so it's important to keep good records regularly on your own, so when you do work with your accountant, whether they're familiar with Tezos or not, they can have a clear readable transaction history. The less time your accountant has to spend gathering and interpreting data, the lower your bill should be, and the more comfortable everyone will be with the numbers you're reporting.


The Good News

Luckily for you, if you're reading this, you've already found a highly capable group of cryptoaccountants and your search is over. Now all you need to do is schedule an appointment with one to get started on taking control of your accounting and taxes.





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