Ernst & Young (EY) has recently launched a tool that helps cryptocurrency users with their accounting and tax calculations. This move is in the latest cryptocurrency news, after an official announcement showed that the software solution is designed to assist US customers to prepare their Internal Revenue Service (IR)S tax returns related to Bitcoin and other altcoin assets.
Called EY Crypto-Asset Accounting and Tax (CAAT), the solution was unveiled on Monday as a program that can source transaction information from “virtually all major exchanges” according to the firm. As such, it can pull together data from various sources and automate the production of different dashboards and reports, as well as tax returns.
The product will serve both institutional clients as well as individuals. EY said that it has seen “significant growth” in the number of customers that hold and trade cryptocurrencies thanks to it.
“From a retail client perspective, the product will be leveraged for high net worth individuals served by the EY Private Client Services practice and made 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,” EY said in a statement.
The firm also suggested that this software will benefit asset management firms in particular, mostly because crypto assets continue to evolve and increase in utility.
“The initial validation we have received from the market has been phenomenal, but it only represents the beginning,” said Michael Meisler, who is a partner and global blockchain tax leader at EY.