Are all Accountants equal? What about Bitcoin?

Are all Accountants the same? What happens when cryptocurrency is thrown in the mix?

Posted on 24/04/2019

Choosing the Right Accountant is just like choosing the service of most other professionals, such as doctors or lawyers. People would normally choose someone who is registered, competent and who can give you the best value for your hard earned money.


In today's complex word, finding the right accountant becomes a challenging task due to ever changing laws and regulations governing taxation, finance, record keeping and Accounting practice. It is important then, that your Accountant should have the relevant experience in dealing with your specific needs.


General Accountants and Specialized Accountant


This analogy would help us better understand the difference between a General Accountant and a Specialized Accountant.


We all have gone to a doctors visit. Normally, a patient would come in to the clinic, and would consult with a General Practitioner - someone who has undergone medical training and has a general understanding of Medicine. If we are lucky, the doctor would just prescribe us some medicine for our illness.


However, there are instances wherein our GP would refer us to a Specialist (i.e. Surgeon, Cardiologist) because he does not have the relevant knowledge and experience to handle our case. A General Practitioner is not trained and equipped to perform heart surgery in the same way that a Heart Surgeon is not prepared to take on a brain related illness.


This is true in the case of Taxation. A General Accountant would be able to assist you with your general accounting needs but you would need a Registered Tax Agent to lodge your tax returns. A Registered Tax Agent has more experience, has more knowledge in dealing with the complexities of tax rules and regulations, and is better equipped to handle your tax needs.


Becoming a Chartered Accountant


Becoming a Chartered Accountant is a long and tedious process as it is considered as a post graduate degree in Accounting field. For starters, one should have a relevant Bachelors degree (AQF level 7 or higher) with coverage of required competence area.


Accountants would need to apply to the Accountant Chartered Program wherein they have to finish the Graduate Diploma of Chartered Accounting (GradDip CA). They then must gain at least 3 years full time approved employment in a relevant Accounting role. They must also complete a practical experience under a recognized mentor.



Cryptocurrency Taxation as a Specialization


Cryptocurrency is a relatively new and booming industry. Due to its emergence into the mainstream, the rules and policies in place for its tax treatment can be subject to changes and revisions by the ATO. There are also a lot of technical terms (i.e. blockchain, forks, mining, airdrops) that are generally unknown to most Accountants.


Given all of these, you would need someone who not only has the specialization in taxation, but someone who will understand when you are talking about ICOs, someone who can answer your questions about the tax treatment of coins from a hard fork, someone who can help you navigate the taxation events of your trades across a range of exchanges, and compile it all into a report for you.



Conclusion


Finding the right accountant is like finding the perfect pair of jeans. Such a person should be qualified and be registered, should provide the best value for your money, and should fit perfectly with your needs. Not all Accountants are equal, so you should find one who has the right specialization, and correct relevant experience.


For all of your crypto tax needs, please contact one of our specialized and experienced Cryptocurrency Tax Accountants. We offer the convenience of an online Accountant service, so we can help you no matter your location.


Want to retain your current Accountant, but they don't know what Bitcoin is? Let us do the tricky stuff.

We are happy to collect all of your crypto data, and compile a crypto CGT report, that you may then supply to your existing Accountant. No cryptocurrency knowledge required by your Accountant.



Get in touch with us to start the simple process,


https://cryptotaxonline.com/contact-us/


Perth - 08 6365 5325

Melbourne - 03 9088 7680

Sydney - 02 9030 0430





Disclaimer
The material published electronically in this article is general in nature and does not constitute financial advice. We do not guarantee that the information is complete or correct. We do not accept any responsibility for loss or damage suffered by any person or body relying directly or indirectly on any information contained within this site.
We do not accept any liability for any financial decisions made on the basis of the information provided. We recommend you seek professional advice, and take into account your particular investment objectives, financial situation and individual needs before proceeding with any financial decisions.

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