Questions To Ask When Hiring a Crypto CPA
Many new CPAs are rushing into the cryptocurrency industry since they are finally becoming aware of the business opportunity and growth associated with this industry. Cryptocurrency taxes and accounting are very complex. In fact, over 95% of the cryptocurrency portfolios and tax returns we review have errors, incorrect tax interpretations or missed opportunities. To worsen this issue, most CPAs do not even have a proper understanding of cryptocurrency transactions needed to adequately interpret tax code sections realted to your portfolio.
I speak with hundreds of new cryptocurrency investors each year and have observed some common mistakes made from a tax or accounting perspective that costs investors and businesses significant money and time. We’ll go over some of the best questions that investors and businesses can ask CPAs to determine their actual expertise in cryptocurrency and avoid costly errors.
Does your CPA have crypto clients?
It’s imperative that you work with a CPA that has deep experience and expertise in cryptocurrency. You definitely don’t want to be their first or only crypto client. You should ask questions that determine the percentage of clients that the CPA firm has that are crypto investors and Web 3.0 businesses.
Ideally, you want to work with a firm that is deeply focused on cryptocurrency for many years. At Camuso CPA, over 90% of our clients transact in cryptocurrency and we’ve been working with crypto investors since 2016. Finding a deep level of experience and expertise like this will ensure that you are getting the correct guidance from someone with real knowledge that understands the nature of your transactions and industry from a tax and accounting perspective.
Does your CPA understand your transaction activity?
It’s important that the CPA you choose has experience not only with cryptocurrency clients but with your specific type of business and investments. The nature of transactions and overall industry are growing in complexity very quickly. It’s important to confirm that your CPA works with and understands the nature of your specific transactions for activities such as DeFi, Mining, NFTs, Nodes, Liquidity Pools, Staking and so on.
Does Your CPA Own Crypto?
Working with a CPA that owns crypto themselves helps to ensure that they have a deep level of understanding of crypto transactions and involvement within your industry. It also ensures that you are not working with a CPA that does not believe in crypto and Web 3 as an industry.
Our firm’s founder, Patrick Camuso, has been investing in cryptocurrency, including Bitcoin, since 2016 which enabled our firm to gain a deep level of understanding related to the nature of cryptocurrency transactions and the tax and accounting needs of investors.
There are still many areas of cryptocurrency taxation that require interpretation from an experienced CPA. This means that there can be differing opinions and tax positions across professional related to various cryptocurrency tax issues.
It’s important to understand the positions that your CPA will take related to any transactions in your portfolio and business. You do not want to work with a crypto CPA before you even determine if you agree with their tax positions realted to your transactions and tax return.
Additionally, you should address the steps your CPA takes in documenting their positions and accoutnig records in order to prepare for an audit.
Cryptocurrency taxes and accounting are very complex. No one wants to overpay Uncle Sam at the cost of your business or family’s finances. It’s important to plan in advance with an experienced crypto CPA when it comes to managing your cryptocurrency taxes and accounting. It is key that you ask your potential CPA the right questions to ensure they are actual crypto experts and not just learning as they go along.
About Camuso CPA
Camuso CPA saves you money, time and peace of mind.
We save digital asset investors and digital businesses thousands and cumulatively millions with effective tax planning strategies, accurate accounting and proactive advice.
At Camuso CPA, all our clients are digital asset investors and digital business owners. We’ve developed cryptocurrency specific expertise that allows us to provide tailored solutions to our clients in ways most other firm simply can’t.
Camuso CPA was one of the first CPA firms in the industry to provide their clients cryptocurrency accounting services and tax advisory. Camuso CPA was also the first CPA firms to accept cryptocurrency as a form of payment for professional services.
Learn more about us here.
- Schedule a time to speak with our team in detail about your taxes and accounting.
- Visit our Learning section to find out more about what we do and the resources we offer.
- Read our Definitive Guide for Cryptocurrency Taxation to learn about cryptocurrency taxes from an experienced CPA.
- Read our Cryptocurrency Tax Planning Guide to learn about saving cryptocurrency taxes from an experienced CPA.