NODE40 rolls out a number of upgrades to its crypto tax reporting software

Despite the 2018 tax season coming to an end, NODE40, the blockchain firm behind the Balance cryptocurrency reporting software, has today launched a number of accountant-focused upgrades that CPAs requested following a fairly arduous 2018 crypto tax filing season.

[perfectpullquote align=”right” bordertop=”false” cite=”Perry Woodin, Co-Founder of NODE40″ link=”” color=”” class=”” size=””]“Just about every CPA, accounting and auditing firm we talk with is dissatisfied with how commercial accounting software lacks sufficient features to properly track trade history, cryptocurrency cost basis, and to generate the critical audit trail necessary to back up their tax position.”[/perfectpullquote]

Over the past few months, Balance has undergone significant advancements to make it more aligned with the needs of CPAs and other financial professionals:

Being able to track cost basis throughout exchanges and custodial wallets that an individual taxpayer or business interacted with was the largest hurdle for CPAs this tax season. Tracking such activity is the key component to preventing overpayment or underpayment of taxes.

Some online exchanges provide rudimentary worksheets to calculate taxes owed but most consumers of digital currencies buy, sell, and trade on a variety of exchanges. When personally owned custodial (off-line) wallets are factored in, the chain of custody grows even more complex. This very typical use-case makes any worksheets or tax reporting from a single exchange nearly useless and almost always wildly incorrect.

[perfectpullquote align=”full” bordertop=”false” cite=” Sean Ryan, co-Founder of NODE40″ link=”” color=”” class=”” size=””]“These ongoing developments to NODE40 Balance, demonstrate that we are building the industry’s most comprehensive cryptocurrency accounting solution. Having been built from the ground up by engineers with the guidance of CPAs and audit practitioners, our technology and audit methodology is always aligned to meet professional standards. This will be more important as we expect to see more formalized guidelines from the IRS, SEC and other financial bodies soon.”[/perfectpullquote]