Cryptocurrency Reconciliation Template

This Cryptocurrency Reconciliation Template is designed for financial controllers, accounting managers, and cryptocurrency accounting professionals who want to streamline their month-end close process for digital asset reconciliation. Whether you're working in a small business or a large company holding cryptocurrency assets, this template will help you ensure accuracy, identify discrepancies, and maintain financial integrity.

Note: This template is specifically designed for companies that hold cryptocurrency outright through company digital wallets or via custodians. If you're investing in cryptocurrency through ETFs or trusts (e.g., Grayscale Bitcoin Trust), this template won't be suitable for your needs. Read our full overview on cryptocurrency reconciliation here.

What is Cryptocurrency Reconciliation?

Cryptocurrency reconciliation is the process of verifying and documenting your company's cryptocurrency holdings against market values and transaction records. As more companies accept cryptocurrency as payment for goods and services or utilize blockchain technologies, maintaining accurate records of these digital assets has become crucial for financial reporting and compliance.

Ongoing Cryptocurrency Reconciliation

Ongoing cryptocurrency reconciliation involves tracking purchases, sales, and price movements of your digital assets in real-time. This template supports four major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), with live pricing data through Google Finance integration.

Month-End Cryptocurrency Reconciliation

At the end of each period, a thorough reconciliation is performed to ensure all cryptocurrency transactions are accurately recorded and valued at current market prices. This process involves comparing your digital wallet balances with your general ledger and documenting any realized gains or losses.

How to Use This Template

This Cryptocurrency Reconciliation Template is designed to be customizable and user-friendly.

Template Purpose: Track and reconcile cryptocurrency holdings, transactions, and period-end valuations.
Template Sources: Digital wallet statements, custodian reports, and real-time cryptocurrency pricing data.

Process Overview

1. Transaction Logging:

- Record all purchases and sales in the Transaction Log tab
- Enter transaction dates, cryptocurrency types, and quantities
- Track lot numbers for realized gain/loss calculations

2. Period-End Reconciliation:

- Verify quantities against digital wallet balances
- Confirm current market prices via Google Finance
- Calculate total portfolio value
- Document realized and unrealized gains/losses

The Importance of Cryptocurrency Reconciliation

Regular cryptocurrency reconciliation is essential for several reasons:
- Ensuring accurate financial reporting of digital assets
- Tracking realized and unrealized gains/losses
- Maintaining compliance with accounting standards
- Supporting audit requirements
- Managing cryptocurrency portfolio risk

Technical Considerations

- Price Validation: Evaluate if Google Finance prices accurately represent your trading platforms
- Platform Restrictions: Consider broker-dealer constraints that may affect valuations
- Accounting Treatment: Assess industry-specific factors and fair value accounting standards
- Transaction Details: Maintain precise records of quantities (especially for fractional holdings like Bitcoin)

By incorporating this Cryptocurrency Reconciliation Template into your month-end close workflows, you can streamline your digital asset management, ensure accurate financial records, and maintain robust documentation for audit purposes.