Now that you have all of your transaction data imported and your assets classified and cleaned up, it’s time to set up labels.

Labels are integral to adding context to your transactions. They are also a crucial part of setting up your workspace, as half of your chart of accounts mapping will be based on your labels.

We’ll walk through optimizing label application below, and the steps you’ll need to take to unlock the full potential of our labeling features.

Step 1: Managing contacts

Before we get started creating the labels, we first recommend managing your contacts. This is because we can build label rules (automation) based on movements between wallets and contacts (other wallet addresses that you do not own).

You can manage your contacts in two places in the “Business” dropdown under NAVIGATE. First, if you head to the “Contacts” page, you can import a list of addresses with contact names; please see detailed instructions about how to do this here. Once you’ve imported, your transactions that interact with the contacts will automatically update in your Transactions page.

💡You can assign more than one address to a single contact. For instance, instead of naming every customer address that you interact with, you can have one contact named “Customers,” and assign all customer addresses to this contact.

 

You can also head to the “Unidentified Counterparties” page. Here you’ll see a list of all of the addresses that your transactions have interacted with but are not identified as a contact. You can go row by row and either add the address to an existing contact, or create a new one.

💡Tip: You can generate a report from the Unidentified Counterparties page that you can then use as a template for your Contacts Import

Now that we’ve managed your contacts and unidentified counterparties, we can move on to setting up label rules.

 

Step 2: Optimize your labeling with automation

At Cryptio, we want to be sure your workspace is set up for as much automation as possible. This is crucial for scaling your workspace and minimizing chances for human error, and means you shouldn’t have to put in loads of work each time you pull in your new transactions or come to your period-end processes.

To make sure we can quickly and easily label transactions, we have created Label Rules. In the “Business” dropdown in the NAVIGATE section, select “Labels.” Here, you should already see some labels populated. These are “Global labels” that are consistent across all workspaces. You can toggle “Auto Application” off if these are not useful or applicable.

Let’s dive into the three Label Rule types you can set up.

Label Rule 1: From/To

This label rule is based on identifying from and to movements with certain addresses or contacts. This is particularly helpful for simple flow of funds. For instance, if you know that all outgoing transactions from your “Ethereum Payments” wallet that go to the contact “Customer” are customer payments, then you can set up a label rule for those movements.

To make this label rule, hit + Label at the top of the page. Give your label a name such as “Customer payments,” then you can assign the label a color.

💡You don’t have to assign different colors to your labels, but doing so will help easily identify transactions when you see them on your Transactions page

 

By default, the label rule will already be based on “From/To,” so we don’t need to change this field. Next, you can choose Wallet or Contact for both the From and To fields. You can include multiple addresses or contacts in either field:

Once you’ve completed the fields, click Create. Your label will appear at the top of the list and you will shortly see the number of transactions that the label has been added to, along with a link to those transactions.

Label Rule 2: Favorite Filter

You can create Favorite Filters on your transactions page, and from there you can turn these into a label rule. For detailed guidance on setting up Favorite Filters, please see this guide here.

This is an extremely powerful option as it allows you to set up label rules based on very granular, specific criteria.

For instance, if you know that only the outgoing ETH movements from wallet “Ethereum Payments” that are also not internal transfers are salary payments, then we can set up the following filters on the Transactions page:

• Asset → Is → ETH
• Wallet → Is → Ethereum Payments
• Order Type → Is → Outgoing
• Internal Transfer Status → Is not → Internal Transfer

We can save this as a Favorite Filter, with a name such as “Salary payments.”

Back on the Labels page, create a new Label. In the drawer that opens, give the new label a name, such as “Salary payments.” Use the dropdown to change the selection from “From/To” to “Favorite Filter.” You should now be able to select the Favorite Filter you’ve just set up.

Hit Create to finish up, and you’ll be able to see the label rule at the top of the list, along with a link to the specific transactions that the label has been applied to.

Label Rule 3: Function ID

The final label rule option is based on Function IDs. A function ID is a “code” used with smart contracts that tell the smart contract what to do. We have a list of these codes imported in your workspace, which you can find in the “Smart Contract Functions” page in the “Business” dropdown. We have a detailed guide here if you would like to dive deeper into Smart Contract Functions.

We can build label rules based on these Function IDs. For instance, let’s say we want to label all transactions that interact with Function ID “0x6a761202” with a particular label. Looking at the transactions on Etherscan, we can see that they interact with a smart contract called “Nethermind: Lido Node Operator,” and so we’d like to label them as such.

Create a new label with a meaningful name, such as “Nethermind LIDO.” In the dropdown for the label rule type, select “Function ID” and input the specific ID you would like to have labeled. If you like, you can also input a specific contract address(es). This is helpful if the Function ID interacts with multiple contract addresses, and you want the label to only apply to transactions on only some of those contract addresses.

Hit Create and your label will appear at the top of the list with the number of relevant transactions, as well as a link to them.

Manual labels

Finally, you can create or add labels to transactions directly on the Transactions page. At the end of the row of a particular transaction, you can click on the + Add Label button in the “Label” column. Here, you can either create a new label or select one that already exists under “Taxable event.”

If you’d like to create a new label, simply start typing a new name, such as “Refund,” and you’ll be presented with the option to Create “Refund” as a label. Select + Add 1 Label and this will now be applied to the transaction.

You can also find this label and apply it to other transactions, simply follow the same steps to add a label and when you type in “Refund” you can add this to the transaction.

Finally, you can select multiple transactions at once and apply this label to them in bulk.

 

Check your progress

At any point, you can check your progress and see how many more transactions need to have labels added to them. If you head to your Transactions page under NAVIGATE, then click on “Needs Review,” you’ll be taken to a tab that says “Transactions without labels.”

Congratulations! You’ve now imported your transactions and, using labels, have added context and meaning to them. Once you have completed this step, you’re ready to move onto integrating with your ERP and creating your subledger.