What else do cryptocurrency companies need when wealth flows in the account?

Written by: FinFax

The cryptocurrency market is experiencing an unprecedented boom, and calls for a "perpetual bull market" are becoming increasingly louder among investors. In recent months, the price of Bitcoin has reached new highs and has stabilized above $100,000; governments around the world have frequently introduced favorable policies, optimized regulatory frameworks, and promoted healthy industry development; areas such as stablecoins and tokenization of stocks have attracted a large influx of new talent and ample capital, presenting a thriving landscape for the entire crypto ecosystem. As of early August 2025, the total market capitalization of the global crypto market has soared to approximately $3.9 trillion, with fiat and cryptocurrencies flowing freely in the accounts of thousands of cryptocurrency companies and Web 3 wallets. This is not only the creation and transfer of massive wealth but also a new normal for business operations in the crypto era. However, behind this flowing wealth, cryptocurrency companies face significant real-world challenges: how to efficiently and accurately manage these complex financial data?

1. The financial and tax fundamentals of cryptocurrency companies.

Tax management is the "invisible engine" of business operations. It is not just simple bookkeeping and tax reporting; it is a comprehensive system that involves strategic decision-making, risk prevention, and resource optimization. In the era of crypto assets, cryptocurrency companies still need to strictly adhere to international accounting standards, such as GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). These standards and regulations require financial reports to be transparent, accurate, and auditable. Any violations may result in hefty fines or litigation risks. In other words, neglecting tax management could pose risks for the long-term development of the enterprise.

Key aspects of financial and tax management include data collection, asset classification, report generation, and more. Taking data collection as an example, cryptocurrency companies handle massive transactions daily, including on-chain transfers, trading on exchanges, and interactions with DeFi protocols. These data sources are diverse: blockchain explorers, wallet records, API interfaces, etc. If the collection is incomplete, subsequent calculations will be significantly off. Asset classification is even more complex and depends on the specific rules of different jurisdictions. If a jurisdiction treats Bitcoin and Ethereum as property, it is necessary to calculate the Cost Basis, using methods such as FIFO (First In, First Out) and LIFO (Last In, First Out). Regarding report generation, it is essential to timely produce complete and accurate financial statements for auditing and information disclosure. Additionally, strictly speaking, some crypto-financial enterprises must also comply with systems such as CRS and FATCA, reporting clients' financial information to the tax authorities in their jurisdiction, which is also a cumbersome task.

2. The Three Major Accounting Challenges for Cryptocurrency Companies

In fact, cryptocurrency companies face three major accounting challenges arising from the uniqueness of blockchain technology and the limitations of traditional financial systems. If not addressed, these challenges will directly impact the operational efficiency of cryptocurrency companies and exacerbate compliance risks.

Insufficient audit preparation is the primary pain point. On-chain data is often fragmented and difficult to align with IFRS/GAAP standards, resulting in unclear financial reporting and a sharp increase in audit and compliance risks. Many enterprises lack standardized templates specifically for crypto financial statements and audit trails, relying instead on manual processing. This approach is not only time-consuming but also prone to errors. For example, a complex DeFi transaction may involve multiple smart contracts, and when manually tracking cost basis and Fair Value, valuation discrepancies can lead to tax disputes.

The issue of data integration difficulties is also prominent. The structure of cryptocurrency transactions is complex, often involving multiple public chains and centralized platforms. In addition, the weak control of cryptocurrency companies over asset classification and access permissions presents multiple obstacles to establishing a unified asset view. This directly delays internal reporting processes and reduces decision-making efficiency across departments.

The incompatibility of cryptocurrencies with traditional ERP systems is another persistent issue. Mainstream ERPs like Oracle, SAP, and NetSuite cannot properly handle cryptocurrency transactions, which can lead to disruptions in asset records, discrepancies in intermediate reconciliations, and a decline in overall financial accuracy. In fact, traditional ERP systems were created for fiat currency accounting, but they often struggle with the "non-standardized" data of blockchain.

3. FinTax Suite: The Ideal Accounting Tool for Cryptocurrency Companies

In the face of the aforementioned accounting challenges, FinTax Suite stands out. As an accounting tool specifically designed for cryptocurrency companies, FinTax Suite is not just simple bookkeeping software, but a comprehensive suite that integrates advanced technology and professional support, adopted by numerous Web 3 pioneers and publicly listed companies. Its powerful features cover audit compliance, precise management, and seamless integration, allowing financial and tax management to transition from development pain points to long-term advantages.

First of all, FinTax Suite offers audit-ready GAAP/IFRS compliant reports, which is one of its core highlights. It can generate dedicated financial statements for cryptocurrencies, including balance sheets, income statements, and cash flow statements, all of which meet audit requirements and support regulatory reviews. More importantly, FinTax Suite is equipped with a professional CPA team that provides support and can answer questions 24/7, helping companies respond in real time to complex accounting scenarios.

Secondly, precise financial management is another major feature of the FinTax Suite. The FinTax Suite employs an intelligent tagging system to achieve clear categorization of transactions, automatically identifying various types of income and expenditures, and supports multiple cost basis calculation methods such as FIFO, LIFO, etc. The FinTax Suite supports multi-layer organizational structures and permission controls, allowing companies to customize access based on roles, ensuring data security while guaranteeing efficient data utilization. The real-time visual reports provided by the FinTax Suite can also assist the company’s management in decision-making, providing accurate financial information support.

Finally, seamless ERP integration allows FinTax Suite to truly integrate into the ecosystem of cryptocurrency companies. FinTax Suite seamlessly connects with mainstream ERP systems such as Oracle, NetSuite, SAP, QuickBooks, and Xero, mapping crypto transactions to traditional accounts, ensuring the accuracy and consistency of financial records, thereby resolving issues such as interruptions in financial record keeping.

4. FinTax Suite: The Inevitable Choice for Crypto Financial Management

Looking ahead, the crypto market will continue to expand, and the regulatory framework will become increasingly完善, leading to more market opportunities. However, in a loose and friendly regulatory environment and a vibrant market environment, the demands for financial compliance and management will also be higher, with real-time tracking, automated reporting, and global compliance becoming standard features. Against this backdrop, traditional financial management methods and systems are becoming increasingly outdated.

FinTax Suite is an accounting software specifically designed for cryptocurrency companies. It features a modular design with flexible configuration of functions and permissions, supporting enterprises in highly customized management according to their organizational structure and personnel division. It can seamlessly integrate with existing ERP systems, effectively addressing the shortcomings of traditional ERP in the accounting of crypto assets. The system comprehensively connects with major exchanges and public chains, integrating real-time trading data and token exchange rate information to ensure the integrity and timeliness of financial data. At the same time, FinTax Suite provides an audit-friendly accounting processing mechanism that complies with international IFRS and U.S. GAAP accounting standards, facilitating enterprises in quickly responding to compliance reviews and audit requirements.

In summary, as wealth flows between accounts and wallets, the FinTax Suite, as an enterprise-level cryptocurrency financial suite, will continuously provide users with an excellent cryptocurrency financial management experience, helping user enterprises reduce costs and increase efficiency, and achieve stable and sustainable development.