We’re now ready to connect to your accounting software (referred to as an ERP) and use all of the work you’ve done so far to map your transactions to the correct accounts.

Your mappings will be built on two components: (1) Asset mappings for each imported wallet source, which relates to your Balance Sheet and (2) Label mapping, which shows your Revenue/Expenses and relates to your Profit and Loss Statement

Step 1: Create a Chart of Accounts in your ERP

When you connect your ERP, you will be able to import your Chart of Accounts that you have built directly into the ERP, into Cryptio. Before we do this, we recommend considering the following:

1. Do you have a dedicated Realized Gain Account (and Unrealized if you use Fair Market Valuations revaluations)
2. Do you have a dedicated Realized Loss Account (and Unrealized if you use Fair Market Valuations revaluations)
3. Do you have a dedicated fee expense account?
4. Do you have dedicated asset accounts for the top 5-10 assets that are most important to your business? (e.g. ETH Asset Account, BTC Asset Account, etc.)
5. Do you have a dedicated “Other” asset account, for all others? (e.g. Other Digital Assets)
6. Do you have dedicated accounts for each of your Revenue or Expense labels? This will make mapping easier.

Step 2: Import your COA from your ERP

In order to begin building your Chart of Accounts in Cryptio, we need to connect to your ERP and pull in the COA you’ve created in your ERP. Follow these steps to do this:

1. Under ACCOUNTING head to your ERP integrations page. Here, you’ll see that you can connect to Quickbooks, Xero, and Netsuite
2. For both Quickbooks and Xero, when you select Connect you’ll be taken to the relevant login page. Enter your credentials and you’ll be connected and we’ll automatically pull in your Chart of Accounts
3. For detailed guidance on connecting to Netsuite, please see this guide
4. If you don’t see your accounting software in this list, you can instead import a custom Chart of Accounts using the fourth “Custom” option. In this fourth box, you can also find a template for the CSV you’ll need to build, which will represent your COA

Going forward, whenever you make a change to your COA within your ERP, make sure you hit the Update button on this page, to ensure that your COA in Cryptio is up-to-date.

Now we can use the imported chart of accounts to build our Cryptio chart of accounts, and start making sure your transactions are mapped to the correct place.

Head to “Chart of Accounts” under ACCOUNTING. If you then click on View Imported COA, you’ll now be able to see all of the accounts that have been imported from your ERP. If some of the accounts are irrelevant or shouldn’t be an option to map your transactions to, you can toggle them off here.

Step 3: Mapping your Default Accounts

Let’s now set up your Default Accounts.

On the main page of the Chart of Accounts, you’ll see several tabs. Click on Default Mapping.

1. In the first box titled “Transaction Fee,” select an expense account to book all of your fees
2. In the next box called “Realized Gains and Losses,” you can choose whether gains and losses go to the same or different accounts
3. Once you’ve decided whether to keep gains and losses in the same account or separate them, you can choose the account(s) you’d like these to be mapped to

You’ve now set up your default mapping!

💡Restricted Chart of Accounts Mapping

Before moving to the next section, it’s important to note that by default, your workspace is set up to restrict your chart of accounts mapping. This simply means that, when you’re mapping transactions you will only see relevant accounts for the type of mapping you’re doing.

For instance, if you’re mapping an asset, you will only see asset accounts from your ERP available, you will not see your revenue or expense accounts available.

Likewise, if you’re adding a label mapping, you will not be able to select any of your asset accounts.

If your use case requires more complex mapping, please reach out to our Customer Support team, who will be able to look into “unrestricting” your mappings, to allow you to map all transaction types and labels to any of your accounts.

Step 4: Asset Mapping

We can move on to map your sources in the “Source Mapping” tab. This is where we’ll specify your particular asset mappings, which we can do in several different ways.

1. First, decide whether you would like to set up mapping for an individual source, or if you’d like to set up mappings for several sources at once.
   1. When you select + Add Mapping, you’ll be taken to a new page where you’ll see the options to set up a mapping for a particular source, for a source cluster, or for sources with a common value in their name (e.g. you’d like all sources with “ETH” in the title to have the same asset mappings)
   2. In the examples shown below, we’ll assume you’ll set up mappings using the “By source” option. This is typically the recommended option so your mappings can be more granular.
   3. There will be an additional option to select all wallets (on-chain) sources or all exchange sources. You’re not required to use this, it’s a helpful option if you know you want all assets on-chain or from exchanges mapped the same way.
2. Next, under “Mapping account” you’ll see “Map all assets with default accounts”
   1. Remember that we recommend setting up specific asset accounts for all major tokens, but we still need to send all others to an “Other” account. This account should be what you add to this field
   2. You’ll also see a “Select the expense account to book the fees (optional)” field here. If you want the fees booked to a different account than what you have specified in your Default Mapping, you can add that account here
3. Finally, under “Asset Mapping” you can set up the asset accounts for your major tokens

   1. This section says “Optional” but this will be necessary if you have main tokens you need to track

   2. Under “Asset,” type in and select your chosen asset, then find the relevant COA for the “Account” field

   3. Repeat this until all main assets have a mapping. This will look something like this:

      

   4. All other assets will now be mapped to the default account you selected in part 2 above

   5. Select “Create Mapping” to save

4. Repeat item 3 above for all of your sources. Remember, you can set up mapping for more than one source at a time, if that’s appropriate.

Step 5: Label Mapping

To ensure your transactions have complete mapping, we now need to set up mappings for your labels. We’ll dive into the “Label Mapping” tab for the following steps.

1. Click + Add Mapping and you’ll see field pop up called “Label Name” and “Account”
2. Simply type in and select the label you want to map, then select the appropriate account to map it to
3. Select “Create Mapping” to save
4. Repeat this step until all labels related to your revenue or expenses are mapped

Once you have completed the steps above, you can select Apply Mappings. Your transactions will automatically update and they should all now have mappings applied to them.

You can check this by heading to the Transactions page. Click anywhere on the row of a transaction, and its details will open up on the right. You’ll be able to see the assigned Debited and Credited accounts here.

FAQs

Q: What about internal transfers?

A: On Cryptio, an internal transfer is a transaction that happens when a crypto-asset and original cost basis have moved from one imported wallet to another imported wallet. Internal Transfers don't have any gains/losses computed on them as the assets haven't left the owner's treasury - Cryptio ensures these are non taxable and auto labeled as Internal Transfers.

The following must be true in order for a transaction to automatically be labeled as an internal transfer:

1. Both wallet sources are imported into the workspace on Cryptio
2. Volumes in the 2 movements need to match exactly
3. Assets in the 2 movements need to match (e.g. USDC and USDC)
4. The out transaction must have happened before the in transaction
5. The 2 movements must have happened within a maximum of 6 hours of each other

If the above is true, then our system will automatically label the transactions as an internal transfer. If you have a pair(s) of transactions that you believe are internal transfers, but don’t meet one or two of the above criteria, please reach out to Customer Support.

💡Do not create your own version of the Internal Transfer label as it won’t have the ‘special powers’ needed to carry over the cost basis and ensure it’s non taxable

Q: What if I have miscellaneous transactions that should not have automated COA applied to them?

A: You can manually apply a Chart of Accounts to any transaction. We don’t recommend doing this for all of your transactions as this is quite manual, time-intensive, and prone to human error, but for the odd transaction that should be treated differently you can easily change its COA mapping.

Click anywhere on the row of a transaction, and its details will open up on the right. There will be an option that says “Manual chart of accounts mapping,” if you tick this box you’ll then be able to select a Debit and Credit account.

Be sure you hit Save to lock in the new mapping.

Q: What about transactions that involve spam/scam tokens?

A: Our Spam Cleaner should pick up most spam assets automatically, however we can’t always catch all of them. Head to our Asset Management page for instructions on how to manage any assets that you identify on your workspace as spam/scam.

Now that you’ve completed mapping your chart of accounts, we can double check the health of our transactions, fix any errors, and then start pushing them to your accounting software!