(As published in Crypto Accounting News.)

For many, talking to an accountant translates to going over tedious minutia and being haunted by the past when wanting to move on, often with an impending fire of deadlines. Cryptocurrency compounds the process by turning tried and true systems on their head for the sake of innovation. Accountants are by nature neurotic and seek to minimize administrative pain for all parties involved, and are working hard to revise systems so that crypto can be streamlined.

Here are a few tips to get ahead in the game.

Provide crypto scope

It is possible to demystify some of the black box of accounting by leading part of it yourself. An accountant performs tasks based on their understanding of your business and the information available. A walkthrough of the business flow, volume, and nature of crypto activity builds a solid starting foundation.

Explain the context in which you use cryptocurrency, such as whether crypto assets are treated as an investment, a payment, or dapp. Include details on technologies touching the blockchain such as offchain activity, crypto contracts, and third party dapps.

Developing a personally tailored accounting solution

If you have periodic exchange or Coinbase activity and don’t plan to increase volume, a traditional accountant may be able to help. A limited engagement such as a one-off consult, compilation, or tax filing may be an economical option to escalate to professional crypto accounting support.

Enterprise operations such as building dapps, running an ICO or exchange, or looking for crypto attest services may need more extensive expertise. Startups at inception benefit from early planning. Ideally, entities with significant crypto usage engage long term ongoing support and leverage existing software to help automate processes.

For organic crypto adoption, such as receiving payment in crypto, many existing accountants evolve their skills as the crypto space comes to them. It may be helpful to retain an established crypto accountant to expedite learning and employ latest practices.

Hint: Most accountants follow cycles such as year end close and tax deadlines. Working around industry crunch time can help with both search and negotiation.

Be proactive in speaking with your accountant

Push consistent updates and reports to your accountant. It’s best not to rely solely on requests. Staying current helps catch nuances early on, Some strategy and tax positions and cannot be adopted after the fact.

Designate what information will be documented and what you want provided by your accountant. Organize supporting documentation unless you want to pay extra for organizing as part of the engagement. In general, do not trust third party dapps to hold records long term. Many are still under development and do not provide records suitable for accounting.

Start early.  The more you wait, the more you pay

Let not the crypto slow you from finding an accounting solution. On some level, accounting is still accounting, it just needs to happen crypto-style in a way that works for you. There are emergent solutions that can assist in the transition to crypto accounting, typically involving a blend of human and software. Your accountant, lawyer, or friend may be able to make a recommendation. Plan ahead to optimize workflow, avoid rework, and minimize cost.