Are you a CPA or tax professional scratching your head about filing crypto taxes for your clients? Or, are you just curious to see what kind of options you have in the crypto tax market. If so, look no further! We've put together your complete guide to crypto taxes. We'll walk you through everything from client and team management to your reporting options.
This guide will give you a high-level overview of all of the available dashboards and menu options available in the leading professional solution for crypto taxes, Ledgible Crypto Tax Pro. We'll also give you step-by-step instructions on how to file crypto taxes for every type of client.
While we've compiled everything in a simple readable format in this complete guide, you can take a look at the video below if you'd prefer learning while watching.
Understanding the Problem at Hand
While Crypto has been gaining popularity for quite some time now, it's finally reached the stage where all tax and finance professionals can't ignore it. It's estimated that 50 million Americans are likely to buy or have owned crypto this year. With that in mind, that means a huge percentage of all tax returns will include some form of crypto reporting.
But how does reporting crypto work? How do you determine sale price, track fluctuations in market value, handle the decentralized nature of the industry? Those are just a few of the questions you might have when beginning to try and understand the crypto tax space. But not to worry, there are applications out there that take all the questions out of filing crypto taxes, for professionals and filers alike. Ledgible Crypto Tax Pro has been adopted by leading banks, financial institutions, and tax firms. For that reason, we're going to focus on how Ledgible can help you through the crypto tax process in this ultimate guide.
Crypto Tax Client Management
By logging into Ledgible Crypto Tax Pro, the first page you will see is the Client Management portal. This dashboard can be accessed from any page by clicking on the clients tab on the left of the top menu. Through this portion of the tool, you can do tons of things that you might want to do with crypto clients.
One of the benefits to having an integrated crypto tax tool like Ledgible is that all of your work gets quickly and easily compiled, allowing for minimal work for tax professionals while providing industry-leading reporting for clients. In the Client Management tab, you can:
- Add new clients
- View the current status of your client accounts: Invited, In Progress, Client Submitted, Report Generated
- View the current payment status of your client accounts (Required in order to run and download reports)
- Open and manage your client accounts (Useful to assist a client if they are stuck or to review a client's account at the same time together)
- Generate and download reports and files
- Resend an invitation email to a client
- Edit client details
- Remove old clients or revoke consent to access a particular client
We've also provided hyperlinks to Zendesk, which will walk through all of the specific product-use cases for Ledgible Crypto Tax Pro.
Team Management
Team management is a vital part of any larger tax professional organization. With this in mind, finding a crypto tax tool that has best-in-class team management should be top of mind. In the "manage team" portion of Ledgible, you can manage and add other preparers from your firm - allowing for seamless collaboration on multiple returns and reports at one time. Through the team management portal, you can:
- Add new team members
- Resend the email invitation to a team member
- Cancel an invitation to a team member
- Copy the direct invite link to personally share with a team member
- Remove team member (account owner only)
Pulling Reports for Clients
Once your clients have input all of their necessary data and made connections to their crypto exchanges and wallets, compiling all the necessary reports and forms is easier than ever. Yes, we did just use crypto, tax reports, and easy in the same sentence. Through the Reports tab of ledgible, you can do the following:
- Generate tax forms and a variety of reports for your clients
- Create files to be imported into common tax and accounting software
- Download and view the details of previously requested reports and files
Crypto Tax Administration
The Administration button available in Ledgible Crypto Tax Pro is shown to the far right of the top menu, and appears as a gear icon. In essence, this button lets you control some of the settings that dictate how your account functions. In this section, you can:
- Account name (View and Edit)
- Ledgible Account ID (View only)
- Tax Pro Code (View and Copy)
- Tax System Account ID (View only)
- Firm ID (View only, optional)
Getting Support with Crypto Taxes
As you're likely catching on at this point, utilizing Ledgible for your crypto tax needs is incredibly simple and easy to understand. However, even the best tax professionals might have some questions every once in a while. If you do have any questions while using Ledgible, you can select the Support button in the top right of the application. By clicking this, you'll gain access to:
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- Help: Opens the extensive Ledgible Knowledge Base with helpful videos and step-by-step guides in a new tab
- Contact Us: Complete the form to contact our support team. Also reachable from the Help button shown in the lower right corner on every page. We love getting feedback from our users and we're always glad to help!
If you're looking for more support utilizing Ledgible Crypto Tax Pro, take a look at our Zendesk account here.
