The impressive rise of Bitcoin, Ethereum, Ripple, and other crypto platforms of this sort over the past several years, coupled with the immense potential blockchain and distributed ledger technologies have shown across all industries, has generated a wave of innovation and disruption in most economies.
In fact, blockchain technology and cryptocurrencies have both proved so prevalent and so useful that giants across all industries are now ready to jump aboard the crypto bandwagon. Nowadays, tech giants such as Google and Microsoft look at harnessing these unique technologies and law firms are launching specialized services for crypto regulations.
As one might expect, the world’s biggest accounting firms have not been ignorant of this rising trend, and many of them have launched blockchain/cryptocurrency audit services. So much so, that the Big Four (the world’s most important accounting firms: EY, PwC, Deloitte, and KPMG) firms have disclosed during 2018 that they are currently looking into developing audit technology for cryptocurrencies and blockchains. Below is a list of cryptocurrency accounting firms—including the Big Four and beyond.
PricewaterhouseCoopers is a London-headquartered multinational professional services network that doesn’t need much introduction in the accounting world. It ranks as the second largest professional accounting services in the world behind Deloitte and has been awarded for consecutive years as one of the most prestigious accounting firms.
Recently, the company started investing in VeChain, and employed more than 1,000 staff members for what has been announced to be a new blockchain/crypto program called “Digital Accelerators Program.” The company’s investment in VeChain acts as proof towards the commitment for creating a trusted distributed business ecosystem.
Deloitte is another member of the “Big Four,” and it provides audit, tax, consulting, enterprise risk, and financial advisory services for a plethora of professionals and companies on an international scale. As of 2017, Deloitte is the 4th largest privately owned company in the United States.
Currently, the company is focusing heavily on the technical development and implementation of blockchain technology, as well as on promoting the usage of blockchain technology. The company has been heavily involved in creating one of the first Bitcoin ATMs in Toronto, Canada, demonstrating that exchanging crypto-to-fiat is possible without strict KYC and AML procedures. Since then, the accounting giant has been heavily focused on creating programs for blockchain integration, and has even created a division called the “Deloitte Blockchain Lab.”
Ernst & Young (EY)
The third member of the “Big Four,” EY has been hard at work for building tools that can help companies identify the inherent risks of relying on blockchain technology, as well as of using crypto-related models such as ICOs.
In April 2018, the company made headlines when it announced the EY Blockchain Analyzer, a technology designed to facilitate EY audit teams in gathering on organization’s entire transaction data from multiple blockchain ledgers.
This technology allows EY audit teams to extract data from various blockchains in order to assist companies or individuals in auditing various types of accounting-related information.
KPMG has joined the ranks of the aforementioned three “Big Four” members by announcing its intent to drive and expand its blockchain strategy into tax, audit, advisory, and industries. During the summer of 2018, the company has worked together with various partners in order to create comprehensive blockchain strategies and has ultimately decided to pivot its blockchain business to risk assessment and audit.
KPMG’s approach towards blockchain is very similar to that of EY’s, as both companies have allocated most of their resources to analyze the risk in implementing blockchain and ease the process of using blockchain for companies.
IBA markets its team as “the leading experts in crypto accounting,” focusing on developing new-age and comprehensive solutions for all taxes related to cryptocurrencies and blockchain. The firm offers a wide range of blockchain account services meant to help any business get an edge on the ever-changing market of crypto.
The services include ICO account consultation, personal cryptocurrency taxation consulting, connection to cryptocurrency CPAs for Bitcoin and other crypto accounting, and coordination for fund administration. IBA’s palette of services caters to almost all types of businesses or crypto administrators such as crypto miners, high-frequency traders, early adopters, asset managers, and blockchain leaders.
Crypto CPA is the brainchild of crypto enthusiasts Andrew Perlin and Charlie Minard, and it’s a blockchain/crypto accounting firm that helps its clients deal with all implications of crypto tax payments.
The premier account firm is designed to cater to the needs of U.S. taxpayers looking to invest in cryptocurrency or willing to launch ICO projects. The company’s two main services are U.S. tax preparation and ICO tax and accounting services. The first one helps companies or individuals strategize the tax return to the IRS. The second service is all about helping the ICO project navigate all the complicated tax and accounting report requirements and ensure that they are in full compliance with FinCEN, SEC, and the IRS.
Mycryptotax is an UK-based proficient crypto accounting firm that offers an impressive collection of crypto tax services to ensure that businesses stay on top of compliance, reporting, and tax planning issues.
The company can help any company identify its tax return requirements, implement the tax-reducing strategy, optimize tax position, and calculate the tax liability. The organization is fully accredited and is an associate member of Chartered Global Management Accounts, Association of UK accountants, Institute of Certified Public Accountants, and British Computer Society.
As cryptocurrencies continue their assent, it’s a good chance we will see a lot more accounting firms launch crypto/blockchain auditing programs. Still, it’s a positive sign that the world’s top accounting conglomerates are willing to invest so many resources into developing crypto-savvy accounting services.