Integral: A Leader in Crypto Bookkeeping Software

In the fast-paced world of cryptocurrency, managing the complexities of bookkeeping and taxation poses a significant challenge for investors and businesses alike. The landscape is ever-changing, with regulatory frameworks that vary by country and are often ambiguous, making compliance a daunting task.

Challenges in Bookkeeping & Accounting for Cryptocurrency

Unclear Regulatory Framework

One of the primary hurdles in cryptocurrency accounting is the lack of a stable regulatory framework. Different countries have varying rules for how cryptocurrencies should be accounted for and taxed, leading to confusion and uncertainty.  This classification, however, introduces its own set of challenges, especially when dealing with a wide range of crypto transactions and their tax implications.

Market Fluctuations

Cryptocurrencies are known for their price volatility, with values that can swing dramatically in short periods. This volatility complicates the valuation of transactions and assets for bookkeeping purposes. Keeping track of the fair market value of crypto assets, necessary for accurate financial reporting, becomes a tough task due to frequent price fluctuations and poor available data.

Complex Transactions

The crypto world is filled with various types of transactions, from trading and staking to lending and airdrops, each carrying potential tax consequences. The introduction of decentralized finance (DeFi) has introduced even more complex transactions, such as liquidity mining and yield farming, complicating the accounting process further. Traditional software options for cryptocurrency bookkeeping or accounting often fall short in capturing the nuances of these activities accurately.

Fragmented Transaction Data

The use of multiple exchanges and wallets by investors and businesses results in scattered transaction data. Summarizing this data into a coherent financial report is a significant challenge, especially when platforms use different data formats and offer limited export capabilities. Cryptocurrency bookkeeping is as much consolidating data as it is maintaining it.

Cost Basis and Gain/Loss Calculation

Accurately reporting crypto transactions for tax purposes requires the determination of the cost basis of assets and the calculation of gains or losses. Methods like First-in, First-out (FIFO) are commonly used, but tracking the acquisition and sale prices across numerous transactions is labor-intensive and essential for compliance.

Software Integration Issues

Most conventional accounting software is not equipped to handle the nature or volume of web3 transactions. Businesses must find workarounds, such as using spreadsheets or crypto accounting software, to bridge this gap. While these solutions can be effective, they introduce potential inefficiencies and error risks.

How Integral supports crypto bookkeepers

Automated Bookkeeping

Integral's crypto bookkeeping software automates the process of recording and classifying crypto transactions. This automation saves time and reduces errors by ensuring transactions are accurately and consistently logged according to predefined rules.

These automations give crypto bookkeepers more time to focus on tough problems.

Easily Legible Data

Our platform transforms complex crypto transactions into clear, legible ledger records. This includes making sense of transactions across various blockchains and wallets,  in a user-friendly format. This is vital for keeping accurate financial statements, for compliance, and strategic financial planning.

It's easy to automatically (or manually) filter out spam tokens, transactions, and NFTs. Heavy ledgers of millions of web3 transactions can be rolled up in a few, clean, auditable journal entries.

Real-Time Treasury Visibility

Integral offers real-time views into crypto assets and fiat currency across different platforms. It's easy to surface asset distribution, values, and the overall financial state of the business. This access to financial data enables crypto tax accountants and owners alike to make timely, informed decisions, supporting financial and strategic planning.

We empower web3 bookkeepers to view balances, review cost basis, tax liabilities, gains or losses, positions, inventory and more at any point in time.

Flexible Policies

In accounting, judgment and interpretation is important to accurately representing a business in the financial statements. Integral empowers teams to customizable accounting policies. Users can tailor how transactions are recorded and reported based on their unique business needs and regulatory requirements.

Customizable policies enable businesses to adapt to these changes, ensuring compliance while also optimizing their accounting practices for efficiency and clarity.

About Integral

Integral was founded in 2022 to support businesses working with digital assets. The company has paired elite technology culture and customer-centricity, positioning it to build powerful, scalable back office solutions for businesses working with digital assets.

In less than a year, Integral has accounted for $150B in crypto transactions, and delivered solutions to web3 pioneers such as dYdX, Uniswap Foundation, Zora, and many more. Integral serves over 150 businesses including institutional hedge and venture funds, Fortune 100 companies, and web3-native entities.