A Compliance Expansion that Empowers Better Use of Digital Assets

TaxBit, the leading provider of compliance solutions for digital assets, has officially announced that the TaxBit Accounting Suite now supports International Financial Reporting Standards (IFRS) and multi-functional currencies. To give you some context, IFRS is basically a set of accounting standards developed by the International Accounting Standards Board to dictate reporting practices for financial statements. Hence, owing to the stated development, TaxBit customers can use IFRS calculations on their digital assets investments and avail reports that accurately represent their chosen configuration with the click of a button, including reporting in their local geography functional currency. This support for IFRS, markedly enough, joins all the other things TaxBit already has on the offer. But what are some of these things? Well, we begin from the suite’s ability to provide entity roll-up capabilities. Here, one can consolidate activities across multiple legal entities into a unified view with a roll-up of transaction data across reports. An ability of such sort means, no matter if it’s a dedicated business unit or entities across multiple geographies, users can tailor reporting to meet currency, time-zone, and accounting methodology needs.

Next up, the TaxBit solution brings to the fore comprehensive data management where it stores all versions of data loaded into the system, as well as comprehensive calculations and generated reports. By leveraging this mix, along with full auditability and the seamless identification of any data discrepancies, TaxBit makes a point to enhance users’ internal controls. Then, there is the prospect of optimizing performance. You see, the platform appears on the scene as well-equipped for handling high volumes of transactions, something it does using pre-calculated data to minimize on-the-fly data aggregation. The said knowhow on the platform’s part eventually allows users to access information they need without experiencing any delays or disruptions.

“In supporting IFRS and additional reporting currencies, TaxBit is now positioned to better service a broad range of new and existing customers across global markets,” said Aaron Jacob, head of accounting solutions at TaxBit. “We believe this type of guidance and cross-functionality can help propel further adoption of digital assets, and we are proud to offer a service that not only fosters that growth, but provides a compliant and secure means to do so.”

Hold on, we still have a few bits left to unpack regarding the TaxBit suite. For instance, we still haven’t discussed how it provides an innovative accounting methodology where users get multiple methods of negative balance handling, including the Retroactive Cost Basis option. The stated methodology is especially useful for high-volume trading, as transactions occur here in a non-linear order. With the given approach, one can control which cost basis to apply to a disposition that may have occurred earlier. More on the platform would reveal that TaxBit suite actually allows for different accounting methodologies between tax and accounting books. This means users can toggle across views and choose the one which best suits their case. Rounding up highlights is, of course, TaxBit’s bid to enhance compliance. Having established support for both IFRS and FASB standards, the platform is now able to guarantee that users’ reporting remains aligned with regulatory compliance standards. Such a feature becomes all the more critical if your business is operational in multiple locations across the globe.