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5 Most Common Human Errors In Crypto Accounting

Crypto Accounting

Crypto accounting is a complex and challenging task that requires a deep understanding of how the emerging market of cryptocurrencies works.

While traditional accounting is straightforward, experienced accountants struggle to comprehend how risk interplays with crypto’s market and how underlying technologies protect investors. 

This makes it difficult for regulators to make informed decisions and entrepreneurs to manage risk in their projects. However, most of the challenges in crypto accounting arise from simple human errors, and everyone in the crypto world could use some help to manage their accounting better. One way to minimize these errors is by using crypto accounting software, which simplifies tracking and managing crypto transactions for individuals and businesses. 

5 Common Mistakes to Avoid in Crypto Accounting 

Mistakes to Avoid in Crypto Accounting 

1. Incorrect Cost-Basis Calculations 

If you’ve engaged in crypto transactions, it’s crucial to understand the impact they may have on your taxes. One common mistake to avoid is miscalculating your cost basis and capital gains. The cost basis is the total amount paid to acquire the crypto, including transaction fees, while capital gains refer to the proceeds from the sale minus the cost basis.

To calculate the cost basis and capital gains, you’ll need to use specific formulas. In a simple example, if you bought crypto for $10,000 (including $35 in transaction fees) and later sold it for $50,000, your capital gains would be $40,000 since you’ll have to face a $10,000 fee. 

However, if you traded one crypto for another, such as selling bitcoin to purchase ether, this counts as two separate transactions, and the cost basis of your ETH would be the amount paid, including fees. It’s essential to keep accurate records and avoid mistakes that could result in penalties or interest on underpaid taxes.

2. Incorrect Spreadsheet Formulas

Even the most intelligent individuals can make simple errors, which can result in significant consequences. For example, TransAlta lost 10% of its annual profits due to a spreadsheet mistake. Although it is challenging to identify spreadsheet errors in traditional accounting, it is even more difficult in the world of crypto accounting, where the complexity of the data can make it difficult to recognize an error until it is too late.

To avoid spreadsheet mistakes, it is crucial to be extremely careful when using spreadsheets and, if possible, utilize more advanced tools. Finding a platform or service where you can reconcile your calculations and results to ensure accuracy is also recommended. Reducing reliance on human accuracy can further help to avoid spreadsheet errors. By taking these measures, individuals can significantly reduce the chances of spreadsheet mistakes and their resulting consequences.

3. Uncategorized Transactions

Keeping accurate records of financial transactions is essential for any business to succeed. However, categorizing these transactions systematically can be a challenge. A proper categorization system ensures that your bookkeeping is error-free and that you can easily identify similar transactions using categories or memos. Invoices must be correctly linked to transactions, and it is crucial to ensure that all events associated with a transaction are accounted for separately.

Let’s take the example of a Cardano transaction, which can trigger multiple events, including a transfer of Cardano, a gas fee paid to execute the transaction, and a gain/loss associated with the transaction. By accurately categorizing and reporting any losses associated with these transactions, you may be eligible for a tax write-off, or even minimize your crypto taxes which could save you money.

Therefore, it is essential to have a robust categorization system in place to keep track of your finances and to make informed decisions that can benefit your business in the long run.

4. Susceptible Security

Crypto accounting is crucial for companies handling crypto assets, but it can be tricky to navigate. One of the biggest challenges is avoiding common mistakes that can compromise the security of sensitive information. Human error is one of the biggest culprits, as employees may inadvertently click on unfamiliar links or enter personal information into fake accounts. 

To prevent these types of mistakes, it’s important to implement best practices such as ensuring employees are properly trained on security protocols and regularly reminding them to remain vigilant. Additionally, utilizing secure networks and limiting access to sensitive information can help reduce the risk of cybercrime. By avoiding these common mistakes, companies can better protect their crypto assets and ensure their accounting practices remain secure.

5. Bad Calculations Based on Inaccurate Exchange Fees

Crypto accounting can be a challenging task due to the complexities of the technology and the lack of standardization across different exchanges. One common mistake is relying on information from one exchange to make calculations about another, which can quickly lead to errors and require significant effort to correct. 

Additionally, manually calculating exchange fees can result in mistakes, so it’s recommended to use automated tools to keep track of fees and calculations. With the help of technology, such as automated software, crypto accounting can be made more efficient and accurate. It’s important to exercise caution and remain vigilant to avoid making mistakes in crypto accounting and maintain accurate records.

Final Thoughts

Crypto accounting can be a challenging task due to the unique characteristics of crypto, such as its cryptographic and anonymized nature. Even experts in traditional accounting may make basic mistakes when dealing with crypto accounting, especially when trying to navigate the additional complexities of crypto. The lack of established crypto accounting standards adds to the challenge as well.

To ensure accuracy and efficiency in crypto accounting, it’s important to exercise extreme caution and use specialized crypto accounting software that can help streamline the process. With the help of accounting software, companies can avoid common mistakes and keep their books organized and accurate. 

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Arnab Dey

Arnab is a professional blogger, having an enormous interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, He carries out sharing sentient blogs.

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Coinbase: Essential Things To Know About This Fintech Company

Coinbase: Essential Things To Know About This Fintech Company

Cryptocurrency creates economic freedom for the people so that they can participate fairly in the economy. Coinbase offers complete economic freedom for more than 1 billion people. They are offering a century-old financial system. Thus, it helps you in getting a trusted platform. It is easy for people and institutions to make it easy for the people as well as institutions.  These are making engagement with people as well as the institutions. Thus, it includes trading, staking, spending, and safekeeping and offers fast free global transfers. Coinbase offers the critical infrastructure for all the on-chain activities and provides support for the builders who share a vision in the on-chain online. Additionally, it is one of the most popular global fintech companies whose services you can rely upon. What Are The Core Services Of Coinbase? Coinbase offers several core services to its clients and customers. This is one of the leading Fintech companies that can offer you absolute solutions within a specific time. You need to get things done in perfect order while meeting your requirements with absolute ease. Some of the key factors that you should know here are as follows:- 1. Buy & Sell Cryptocurrencies Users can buy and sell a variety of cryptocurrencies, including Bitcoin, Ethereum, and others, using fiat currency. It is one of the basic services that Coinbase offers to its clients. You need to be well aware of the situations to meet your goals. The future of money is revolving around Cryptocurrency. 2. Wallet Services Coinbase provides digital wallets for users to store their cryptocurrencies securely. Without knowing the reality, you cannot make things happen in your favor. Wallet services will offer you the best opportunity to keep your cryptocurrency safe with complete ease under certain measures. Although, it will help you in getting best wallet services. 3. Exchange Services The platform offers a trading platform where users can trade cryptocurrencies with each other. You can compare the prices as per your requirements within an estimated time frame. This will boost your chances of earning within a shorter span of time. 4. Conversion Services Users can convert one cryptocurrency into another using Coinbase's conversion services. Your business's conversion services will rise within a shorter time frame. Ensure that you follow the correct process from your counterpart. It will be easier for you to get more value for your money using their conversion services. 5. Merchant Services Coinbase provides services for merchants to accept cryptocurrency payments from customers. Seeking merchant services will make it easier for you to get things done in the correct order. This will assist you in meeting your goals with complete ease. Its services are similar to Stripe. 6. API Services Coinbase offers APIs for developers to integrate Coinbase services into their own applications. Applications of the API services will help your business to grow in the correct order. Try to follow the correct process that can make situations work for you in the right order. 7. Education Coinbase provides educational resources for users to learn about cryptocurrencies and Blockchain technology. This will help beginners in crypto trading gain valuable insights into the current market scenario. Try to follow the process that can assist you in making the best options work for you in the right sequence. What Type Of Solutions Coinbase Offers To Individuals There are several types of solutions Coinbase offers to individuals that you must be well aware of while attaining your requirements with ease. Some of the key services Coinbase offers to individuals are as follows:- 1. Cryptocurrency Buying & Selling Coinbase provides a user-friendly platform for buying and selling a variety of cryptocurrencies, including Bitcoin, Ethereum, and others, using fiat currency. You need to keep things in perfect order when you want to buy and sell Cryptocurrency within a specific time. 2. Digital Wallet Coinbase offers a digital wallet solution where users can securely store their cryptocurrencies. The wallet includes features like multi-factor authentication and insurance coverage. A digital wallet can offer you the chance to keep your Cryptocurrency in safe custody. 3. Recurring Buys Coinbase allows users to set up recurring purchases of cryptocurrencies, allowing them to invest in cryptocurrencies over time. Recurring buying of Cryptocurrencies will become possible for you if you make use of  Coinbase platform for your Crytotrading. 4. Vault Coinbase offers a vault feature for storing large amounts of cryptocurrency securely. 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Thus, only by participating can you earn the maximum rewards within a shorter version of time. It can boost the scope of your earnings to a greater level within a shorter version of time. 8. Crypto Debit Card Coinbase offers a debit card that allows users to spend their cryptocurrencies at merchants that accept Visa. The application of cryptocurrency can help you make use of debit cards that can assist you in reaching your goals. What Type Of Solutions Does Coinbase Offer To Businesses? Coinbase offers several types of solutions to many businesses. You need to be well aware of it while attaining your requirements with complete ease. Without knowing the facts, things can become more difficult for you in the long run. Some of the key facts that you should know at your end are as follows:-      1. Offering Merchant Solution Coinbase provides tools for businesses to accept cryptocurrency payments from customers. This includes payment buttons, invoices, and other payment solutions. Thus, you need to get through the details that can assist you in meeting your requirements with ease.    Once you make things work perfectly in your way, it can become easier for you to attain your requirements with ease. Try to keep things in proper shape while attaining your requirements with ease. 2. Commerce Coinbase Commerce allows businesses to accept cryptocurrencies directly on their websites or in their brick-and-mortar stores. Thus, you can enjoy flexibility in the process of your transaction with complete ease.    Commercial businesses can also seek the benefits from Coinbase platforms. You must take care of these facts while meeting your requirements. Ensure that you know the process from your end while applying for this cryptocurrency platform. 3. Custody Services Coinbase offers custody services for businesses looking to store large amounts of cryptocurrency securely. This includes cold storage solutions and insurance coverage. Make an application for custody services to meet your needs with ease. The custody services of these platforms can make it easier for you to keep your cryptocurrency in safe hands. Once, you follow the correct process things can become perfect for you in the long run. 4. Exchange Services Coinbase provides exchange services for businesses looking to trade cryptocurrencies. This includes access to a deep liquidity pool and competitive pricing. Thus, you can compare the rates that you need. Once it is done, your selection process ends here. No other platform will offer you such facilities as this app can deliver you. If you have a limited budget, then also you can make use of this platform to make the correct selection of Cryptocurrencies that suit your budget and can boost your earnings. 5. API Services Coinbase offers APIs for businesses to integrate cryptocurrency transactions into their own applications. 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SUIC Stock – Present Price, Forecast, Statistics – Should You Invest In It In 2022?

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Sino provides venture financing, investment in public and private sectors, research and development, etc. The organization predominantly focuses on blockchain-related businesses like blockchain application technology, professional consultancy for ICOs, financial technology services, and others. Current Price Of SUIC Stock The current SUIC stock price on April 19, 2022, is USD $ 0.550. Prediction Of SUIC Stock Price Below I have presented a full SUIC stock forecast considering both the historical and future data. Take a quick look: 1. Historical Data  DateOpening priceClosing priceMinimum priceMaximum price2022-04-14Open: 0.510Close: 0.580Low: 0.470High: 0.5802022-04-13Open: 0.5075Close: 0.550Low: 0.465High: 0.5502022-04-12Open: 0.5010Close: 0.550Low: 0.5010High: 0.5502022-04-11Open: 0.510Close: 0.510Low: 0.510High: 0.6202022-04-08Open: 0.452Close: 0.452Low: 0.452High: 0.5702022-04-07Open: 0.550Close: 0.538Low: 0.529High: 0.5502022-04-06Open: 0.540Close: 0.550Low: 0.490High: 0.5502022-04-05Open: 0.450Close: 0.490Low: 0.450High: 0.5302022-04-04Open: 0.570Close: 0.577Low: 0.550High: 0.5772022-04-01Open: 0.460Close: 0.460Low: 0.460High: 0.4602022-03-31Open: 0.450Close: 0.450Low: 0.450High: 0.4502022-03-30Open: 0.450Close: 0.450Low: 0.450High: 0.4502022-03-29Open: 0.450Close: 0.465Low: 0.450High: 0.4802022-03-28Open: 0.451Close: 0.480Low: 0.451High: 0.481 Analysis: You can see the full historical stock price from 28th March 2022 to 14th April 2022, from the above dataset of SUIC stock price. As you can see, the prices have an upward rising trend within this time span which indicates long-term profitability. 2. Predicted Future Data  2022-04-19Price: 0.518Min: 0.484Max: 0.5542022-04-20Price: 0.524Min: 0.488Max: 0.5582022-04-21Price: 0.525Min: 0.489Max: 0.5582022-04-22Price: 0.518Min: 0.482Max: 0.5562022-04-25Price: 0.556Min: 0.522Max: 0.5912022-04-26Price: 0.524Min: 0.487Max: 0.5592022-04-27Price: 0.529Min: 0.493Max: 0.5632022-04-28Price: 0.531Min: 0.495Max: 0.566 Analysis: The projected future dataset shows that from 19th April to 28th April, the minimum, maximum and the closing price of SUIC Stock would rise. As a result, long-term profitability can be sensed. 52 Week High And Low Of SUIC Stock Price Below, the historical and predicted 52 Week H and L values of SUIC stock are given. It will help you understand the highest and lowest price at which the stock has traded during one year. 1. Historical Data  52 Week High52 Week Low200.3 2. Predicted Future Data  52 Week High52 Week Low35.9700.0000001 Is SUIC Stock Bullish Or Bearish? Analysis: Bullishness or bearishness denotes the health of a stock and how well its price would rise in the market. The diagram above shows that SUIC Stock at present has a bearish trend. However, as per the recent SUIC stock news, its potential is expected to push it towards the bullish side by the end of 2022. How SUIC Stock Is Going To Perform By 2027 Source: https://walletinvestor.com/stock-forecast/suic-stock-prediction Source: https://walletinvestor.com/stock-forecast/suic-stock-prediction#:~:text=Current%20price%20today%3A%20%E2%96%B20.580%20USD%20(%2B23.404%25) Analysis: It’s evident from the above graph that SUIC Stock Forecast 2025, 2026, and 2027 will perform. Not only this but also the SUIC stock forecast graph indicates the downward movement. Only in 2023, the price potential is expected to be higher and positive. Frequently Asked Questions (FAQs) Q1. 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Instant Loan App: Top 25 Best Loan Apps Should You Know In 2023

With the rise in the level of digitization, there has been a simultaneous rise in the number of instant loan apps in the last few years. As per various sources, in the year 2022 itself, the demand for personal loans surged by 50% in the retail industry. However, a very interesting fact is that in the disbursement of personal loans, non-banking financial institutions were on top of banks. In this article, we will mainly discuss the top twenty-five instant loan apps that offer personal loans in 2023. These are the best loan apps that will allow you to avail of loans fast. However, these apps come with different types of service options, and the time of disbursal changes with the app. Hence, to get fully informed, read on through to the end of the article. The Best 25 Instant Loan Apps In 2023   The following are the best instant loan apps that you must look for before you try to avail yourself of personal loans fast in 2023: 1. Earnin   If you are qualified to get loans in this app, you can get an emergency loan from this app if you are confident to pay it back. The advances are large. 2. Chime   This is one of the best $50 Loan Instant Apps if you are looking for payday loans. However, lenders can still charge high interest. 3. Current   The best thing about this app is that there are no overdraft fees associated with it. Furthermore, you can get overdraft protection of $200. 4. MoneyLion   You can get an instant cash advance of up to $300 dollars, and you can also be able to access and improve your credit score. 5. Brigit   This is one of the best cash advance apps. If you are an eligible member, cash advances are available to you between #50 and $250. 6. Dave   This is one of the best $100 loan instant apps that you will come across. Cash advances start here at only $5, and there is also automatic overdraft protection. 7. Spotloan   Once you do a SpotLoan login, they will inform you, "It’s an installment loan, which means you pay down the balance with each on-time payment.” It means that it is not a payday loan app. 8. Bright Lending   You can get loans from $300 to $1000, but there are also triple-digit APRs, as well as short terms for repayment. 9. Cash App   How to borrow money from Cash App? The Cash App borrow loan services allow you to use the app and access loans from multiple devices using the tag “$cashtag”. 10. MoneyLion   With the help of Moneylion NYC, you will be able to avail of credit-builder loans without a credit check if you are a member. 11. SoFi   The best thing about this loan app is that you can get even $5000 to $100,000 loans and can get your funds on the same day. 12. PayActiv   You can get here early paycheck access, and also you will be able to get up to 50% of earned wages before your payday. 13. Even   If you are eligible, you can get up to 50% of your earned wages early, and you can get budgeting tools to track your spending as well. 14. Branch   Apart from getting 50% of your earned wages early, you will also benefit from no credit checks and zero-cost loans. 15. Grain   If you have low credit scores, then this is one of the best loan apps for you. This is also great if you have a short credit history. 16. Vola   If you are able to pay a monthly fee, with the help of Vola, you can permanently avoid overdraft fees with the help of instant cash advances. 17. Empower   Borrowing a small number of finances can be easy with the help of the Empower Loan App. Furthermore, there are budgeting tools to track expenses. 18. CLEO   The app uses AI to help you analyze your spending and help you by giving actionable insights as well. You can also avoid overdraft charges with the help of rewards and auto savings. 19. SoLo   Once you apply for a loan here, you will get a soft credit check, which will not affect your credit score. However, based on the credit check, lenders will have a better idea in regards to lending their money to you. 20. Upgrade Personal Loans  You can get fast loans with Upgrade, You can get loans up to $50,000. However, there is a high origination fee associated with the borrowing. 21. Varo   Apart from being a loan app, this is also a bank account, which gives you an account with a minimum balance with no monthly charges or overdraft. Furthermore, the credit card option is also secure. 22. Albert   According to Business Insider, “Albert is a financial app offering automatic savings tools, cash accounts, cash-back rewards, auto-investing, and much more.” However, you can get some customer service issues, as per complaints of borrowers. 23. LendJet   Although not a direct lender, you can get access to a variety of lenders through this platform. Hence, it will be easier to look for personal loans from various options. 24. ZippyLoan   Like the other platforms, ZippyLoan also offers you to choose from a variety of lenders. You can get loan amounts from $100 to $15,000. 25. Viva Payday loans   You can apply for loans in this app without having a credit history for yourself. The loans are hassle-free, and you will get fast approvals as well. Summing Up   Hope this list is informative enough to give you a better idea of the best instant loan apps in 2023. If you are trying to avail of fast loans, then you must try one of these apps mentioned above to get the best services. However, we will still recommend you read all the information related to availing of loans. This will give you a better idea of what services are offered by the loan app that you are taking a loan from. Which of the aforementioned loan apps do you think is the best option for you? Share your reviews with us in the comments section below. 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A Deep Dive Into Non-Qm Mortgage Loans

Navigating Home Financing: A Deep Dive Into Non-Qm Mortgage Loans

In the realm of mortgage financing, Non-QM (Non-Qualified Mortgage) loans have emerged as a flexible and inclusive option for individuals who may not fit the traditional lending criteria. This comprehensive guide aims to shed light on the intricacies of Non-QM mortgage loans, exploring their definition, eligibility criteria, benefits, and considerations for those seeking alternative paths to homeownership. If you're curious about Non-QM loans and want to learn more, click here. Understanding Non-QM Mortgage Loans What Are Non-Qm Loans? Non-QM loans fall outside the guidelines set by government-sponsored entities like Fannie Mae and Freddie Mac. Unlike traditional Qualified Mortgages (QM), Non-QM loans provide a more inclusive approach to lending by considering a broader range of borrower profiles. Eligibility Criteria For Non-Qm Mortgage Loans 1. Credit Flexibility Non-QM loans are designed to accommodate borrowers with unique credit profiles. Individuals with a recent bankruptcy, foreclosure, or fluctuating income may find Non-QM loans more accessible. 2. Debt-To-Income Ratio Variation While conventional mortgages often adhere to strict debt-to-income ratios, non-QM loans allow for greater flexibility. Borrowers with higher debt-to-income ratios may still qualify based on other compensating factors. 3. Alternative Documentation Traditional mortgages often require extensive documentation to verify income and employment. Non-QM loans, however, may accept alternative forms of documentation, making them more suitable for self-employed individuals or those with non-traditional income sources. 4. Unique Property Types Non-QM loans can be more lenient when it comes to financing unique property types. This flexibility is beneficial for borrowers looking to invest in non-traditional homes or properties. Benefits Of Non-Qm Mortgage Loans 1. Accessibility For Non-Traditional Borrowers Non-QM loans provide an alternative for borrowers who don't meet the stringent criteria of conventional mortgages. This inclusivity extends to self-employed individuals, retirees, and those with unique financial circumstances. 2. Flexible Underwriting Criteria The flexibility of non-QM loans allows lenders to consider a broader range of factors beyond the traditional credit score and debt-to-income ratio, providing more opportunities for approval. 3. Unique Property Financing Borrowers interested in financing unique or non-traditional properties may find Non-QM loans more accommodating than traditional mortgages. 4. Credit Repair Opportunities For individuals with recent credit challenges, Non-QM loans can serve as a stepping stone to homeownership while providing an opportunity to rebuild credit over time. Considerations And Drawbacks 1. Higher Interest Rates Non-QM loans typically carry higher interest rates in contrast to conventional mortgages. It's crucial for potential borrowers to thoroughly assess the long-term financial implications. 2. Potential For Larger Down Payments Some Non-QM lenders may require larger down payments, impacting the initial financial commitment for borrowers. 3. Limited Regulatory Protections Non-QM loans are not subject to the same regulatory protections as Qualified Mortgages. Borrowers should carefully review loan terms and conditions. 4. Variable Loan Terms Non-QM loans may come with variable terms and conditions. Borrowers must understand and assess the specific terms offered by lenders. The Non-Qm Mortgage Loan Application Process 1. Pre-Application Consultation Prospective borrowers should engage in a pre-application consultation with a Non-QM lender. During this phase, the lender will assess the borrower's unique financial situation and discuss available loan options. 2. Documentation Submission Borrowers will be required to submit documentation to support their application. This may include alternative income documentation, proof of assets, and other relevant financial information. 3. Underwriting And Approval The lender will conduct a thorough underwriting process, considering the borrower's unique circumstances. Upon approval, the borrower will receive a loan offer with specific terms and conditions. 4. Property Appraisal As with any mortgage, a property appraisal may be required to determine its value and suitability for financing. 5. Closing And Homeownership Upon completing the necessary steps and meeting any remaining conditions, borrowers can proceed to the closing. This involves signing the required paperwork, officially making them homeowners. Conclusion Non-QM mortgage loans offer a valuable alternative for individuals who may not fit within the parameters of traditional lending. While they come with certain considerations and potential drawbacks, the inclusivity and flexibility of Non-QM loans make them a viable option for a diverse range of borrowers. As with any significant financial decision, thorough research, consultation with non-QM lenders, and a clear understanding of the terms are crucial. If you're intrigued by the possibilities of Non-QM mortgage loans and want to explore more, click here for additional information. Read Also: How To Get Personal Loan On Bajaj Markets Speed Up Your Funding: A Quick Guide To Business Loans What You Should Know Before Committing To A Cash Buyer