In this guide, you will learn exactly how to get your data ready to be imported into your accounting system (Quickbooks, Xero...) or ready for your accountant.
STEP 1: Import your sources
Sources are your: wallet addresses, exchange accounts, custody solutions, etc.
The very first step is to import your sources and each source an identifiable name for example MyBusinessWallet, the software will automatically pull the entire transaction history, from the first day the source was created.
You also have the option of choosing a Start and or End Date. Choosing a start date is a common case when users have already accounted for previous accounting periods and don't want reconciled transactions mixed with un-reconciled transactions.
That being said, I love having all my crypto data stored safely in my Cryptio Sub-ledger.
STEP 2: Classifying your transactions
This is the process of adding meta-data to transactions to add context and so that when synced to your accounting software it is easily searchable & identifiable.
Pt1 - Identify your contacts
To be able to classify transactions based on their accounting nature (salary, staking interests...), you need to identify your contacts to then create auto-labeling rules based on these counterparties.
Contacts can either have 1 address linked to them for example "Antoine's Wallet"
or have multiple addresses linked to them for example "Employees".
Pt2 - Labels your transactions
You're ready to start automating the labeling of transactions by setting rules in the labels section, that are connected interactions between your imported sources & external identified counterparts.
Example 1: MyBusinessWallet has a withdrawal of ETH that is being sent to an address I have identified as Blockchain Consultant.
The logic/rule: I want every transaction that goes from MyBusiness wallet to the contact Blockchain Consultant to be labeled Professional Services Expense.
Example 2: MyBusinessWallet has deposits of ETH coming in on a monthly basis from multiple addresses that I have batched together into the contact Subscribers.
The logic/rule: I want all transactions that are deposits coming from Subscribers to MyBusinessWallet to be labeled Monthly Subscriptions.
Step 3: Sync & Map your Chart of Accounts to Transactions
We advise all business ops to consult their accountant/bookkeeper in the case that you're not sure how to set up your Chart of Accounts or need to create new accounts in your Chart of Accounts for your Crypto activity.
But, if you're a pro and already have this set-up, carry on:
Pt1: Sync your Chart of Accounts from Xero or Quickbooks to Cryptio
Under the Accounting tab, you should see Integrations in this area you'll be able to connect your Xero or Quickbooks account.
Once connected the software will automatically pull your entire Chart of Accounts through the API. If at any moment you update your Chart of Accounts in Xero / Quickbooks, you simply have to click on the 'update chart of accounts' button.
Pt2: Automated Mapping of Chart of Accounts to Transactions
Under the Accounting tab, you should see Chart of Accounts, in this area, you will set rules to automate the mapping for balance sheet & pnl accounts to all of your transactions.
There are three levels of mapping Default, Wallet/Exchange & Label.
Mapping Default Accounts:
Map your Realised Gains/Losses Account to default gains
Map your Realised Gains/Losses Account to default losses
Map your Transaction Fee Account to the default fee
Wallet / Exchange Mapping - asset account mapping:
Select an imported source, for example, MyBusinessWallet or Binance
Click on map individual assets
In the first field, you are provided with a list of all the assets within that source.
Map each asset to its corresponding asset account from your Chart of Accounts.
Repeat for all sources and all assets.
Each asset needs its own asset account.
Label Mapping - income, expense, or liability account mapping:
Select one of your Labels
Select the corresponding account from your Chart of Accounts.
Example: In step 2 we created the label Monthly Subscriptions.
Logic/rule: All transactions with the label Monthly Subscriptions should be mapped to the Sales Revenue income account from your Chart of Accounts.
Pt3: Syncing Transactions to your Accounting Software
Now that your data is classified and the accounts from your chart of accounts mapped to transactions, the software has everything required to send your crypto data as fiat values to your accounting software.
Syncing transactions via API:
Filter for the transactions you want to Sync via the Label
Select all transactions
Click Sync 'x number' transactions to xero/quicbooks etc..
Step 4: Locating & Reconciling Transaction in Xero (we also support Quickbooks)
Depending on whether you're using the Xero or Quickbooks API will determine how you locate the transactions that have been pushed as Manual Journal Drafts from Cryptio.
For the purpose of this guide we will be using Xero as our example:
Log-in to Xero
Under the Accounting, tab click on Reports
Click on Manual Journals, then click on Drafts, this is the location of the synced transactions that you have pushed from Cryptio to Xero.
Click individual entries to view them and post them.
Or Select all of them and Post them at once.