When it comes to owning cryptocurrencies, the investors should comply with the financial obligations like submitting their tax reports on time to the regulatory bodies. These crypto taxations and cost-based calculations often seem to be challenging for the financial professionals, due to the lack of technology for appropriate crypto accounting. The traditional approach of crypto tax calculations still depends on the spreadsheets that have long become outdated. This is undoubtedly a laborious and time-consuming work that cannot be, in any way, be at par with the modern-day requirements. So, to ease these kinds of obstacles, Blox, the industry-leading platform for crypto tracking and accounting, has launched the first-ever automated cost basis tools that will facilitate cryptocurrency profit and loss calculation.
Alon Muroch, the CEO of Blox, commented on this innovative approach by saying,
Crypto accountants and tax professionals will spend hundreds of thousands of hours on calculating P&L manually for the 2020 tax season. This is simply not sustainable for the future of cryptocurrencies. If we can save businesses money, while saving accounting firms time and resources, it’s a win/win for the industry and the future of crypto.
The cost basis tool allows the users to easily calculate their profits or losses with the accounts that are synced with the Blox platform. For every crypto transaction that triggers a taxable event, the automated cost basis calculation tool will give out the most appropriate result. Blox has developed a leading platform that automatically tracks crypto transactions, thereby helping out accountants and professionals to organize, monitor, and manage millions of assets. Moreover, with Blox, there is no need to develop complicated in-house solutions.
In fact, the new cost basis tools have eliminated the human errors that are inherent to traditional spreadsheet crypto tax computation. It integrates “automated services,” to fetch the complete historical real-time records of the users, thereby providing the professionals, an insight into the completed financial overview of the accounts.
This tool is expected to save hundreds and millions of dollars of the investors in tax liabilities and also reduces the time and effort required in tax computation.