By Staff Reporter
Big Four accounting firm, EY, has launched its Crypto-Asset Accounting and Tax tool, a technology solution designed to facilitate accounting and tax calculations for cryptocurrency transactions, according to a statement released by the PR Newswire.
The latest move comes as large global accounting firms are opening cryptocurrency and blockchain services for clients.
EY CAAT was designed with the ability to source transaction-level information from virtually all major exchanges and is seen as benefitting the asset management firms as well as individuals and family offices that invest in crypto assets.
It consolidates data from multiple sources and allows for the automated production of various reports and dashboards, and preparation of IRS tax returns related to crypto-assets.
EY aims to use CAAT to serve institutional clients that have crypto-assets on their balance sheets, as well as both institutional and individual clients who trade such assets on a smaller scale.
“The initial validation we have received from the market has been phenomenal, but it only represents the beginning,” said Michael Meisler, partner and EY global blockchain tax leader, said in the statement. “EY professionals and clients alike are eager to leverage this technology. EY CAAT is the hallmark of our efforts in crypto-assets and blockchain from a tax perspective globally.”
EY developed the tool by integrating recently acquired technology assets and related patents with other EY processes. The acquisitions were led by EY Foundry, a corporate venturing unit within EY Tax charged with developing transformational digital businesses.
Over time, the firm plans to leverage the product for high-net-worth individuals served by the EY private client services practice and make it available to users of EY TaxChat, a mobile tax preparation service that pairs users with licensed and experienced EY professionals who prepare individual tax returns.