Over the past few years, the world of crypto-currency has shown a rapid start and has become literally a cannon shot. From a niche market to becoming a household name, it has come a long way. In fact, this fast growing industry will continue to grow at a rapid pace for the foreseeable future. To continue to profit from this growing market, you need to realize basics of accounting. As a cryptocompany, you will need to keep track of your finances in accordance with the law, i. e., to do accounting services in Lithuania. While there are plenty of these services for crypto companies, you need to choose the right one for your organization.
Cryptocurrency companies accounting in Lithuania: what’s included
Accounting is a determination of fiscal viability and implementing commercial decisions. Mostly, commercial structures need an accountant to manage their recordings. Accountants may be hired by organization on basis of an employment contract, or a firm can enter into arrangement with a firm offering accounting services on their provision.
Businesspersons are offered ongoing accounting services, maintaining accounting documentation, submitting reports to the competent state bodies, consulting on fiscal and tax issues, representation in state establishments and other related aspects.
Crypto exchange accountant in Lithuania provides next-mentioned:
- reports on annual basis;
- balance sheets, income statements and cash flow statements;
- processing statements from cryptocurrency exchanges and crypto wallets;
- accounting for commissions, spreads, and the true crypto-transfers rate;
- forming separate accounting of client and own funds of organization;
- maintaining tax recordings of operations of a crypto-currency exchanger;
- accounting documentation in course of an audit.
Accounting for cryptocurrency investments
In Lithuania, cryptocompanies are also offered tax advice for private crypto investors. This will help individual investors calculate and optimize the tax burden of investing in virtual assets, as well as form all mandatory bookkeeping for cryptocurrency companies.
Thus, crypto accounting is tracking and recording the value of your virtual or cryptocurrency assets, which includes the processing and analysis of all operations made by your organization in course of commercial activities or, if you are a private blockchain investor, in your crypto wallet or in personal account of the crypto exchange. Goal is to get current and complete overview of state of balance sheet and equity of the company or the value of the investment portfolio of a private investor, correctly calculate the tax liabilities arising from the receipt of profit from cryptocurrency investments, take into account the losses incurred in the process of calculating the tax burden and be able to provide a transparent and a clear report to tax representatives. In addition to being an obligatory part of being a responsible crypto investor, proper accounting also makes it easier to comply with tax laws and report earnings.
Accounting services for digital assets and cryptocurrencies by cryptocurrency accountants in Lithuania, as well as investments related to them, is becoming increasingly relevant and significant as cost of cryptocurrencies grows and blockchain market for technologies develops.
Lithuania is becoming a popular destination for many fintech companies and an alternative option for those who have previously considered registering a crypto business in Estonia. In any case, every crypto firm is required to hold accounting records. Nevertheless, one should think about plenty of nuances that this question entails. That’s why many entrepreneurs turn to specialists. Additionally, jurisdiction requires the company’s accounting manipulations be carried out by an exceptionally professional person with extensive experience in this field.