We all know that compliance for SMSFs is one of the highest hurdles for quality, considering the external audit and additional compliance requirements set out in the SIS Act.
Getting compliance work done for SMSFs with crypto just hasn’t been that easy:
Each crypto asset must be clearly stated on the Investment Summary Report, along with the 30 June market value. 📈
Every CGT event must be recorded and each capital gain / loss must be calculated.
Every other source of income, such as interest, staking and crypto airdrops must also be recorded.
When an SMSF client only had a handful of crypto trades in their SMSF, then we were all able to manage okay. 👍
But when an SMSF client had 100s or even 1,000s of crypto trades, then we could look forward to hours and hours of tedious, time-expensive, and error-prone manual journals 😭, where each and every purchase and sale needs to be recorded.
Syla + BGL makes crypto SMSFs simple
We’ve partnered with BGL to automate crypto transactions for Accountants. With the direct data-sync from Syla into BGL, the crypto transactions now sync instantly.⚡
All closing balances are shown, for each crypto asset, on 30 June. ✅
All purchases and sales of cryptocurrency are recorded, ensuring capital gains calculations and application of the 1/3 CGT discount are performed correctly.
Income transactions are recorded, including interest payments and airdrops in crypto.
👉 Now you can solve crypto SMSFs, instead of avoiding them.
Let’s get into the practical steps on how:
Setup an account in Syla
First, you’ll need an account in Syla for each SMSF client.
You can register a new account for the SMSF from the sign up page. - make sure you select SMSF as the Account Type. Doing this will ensure the correct tax treatment and reporting for SMSFs is applied to your client’s transactions.
Import your client’s cryptocurrency transactions into Syla. - this can be done by adding a new data source, selecting your client’s crypto exchange, and importing the required file, or by setting up an API data-feed. - if you don’t have your client’s transactions yet, then there are instructions provided in Syla that you can forward to your client.
Edit transactions as needed to apply classifications.
Syla is the place where you’ll get your client’s crypto portfolio looking perfect. 🤩
Since most crypto SMSFs have relatively simple investment activity, there’s usually not a whole lot you need to do. If it’s more complex crypto activity, then you can get the data reconciled perfectly in Syla before you complete the BGL crypto import sync.
Connect Syla and BGL
It’s really easy to get your Syla account talking to BGL for crypto imports.
If you’re working with a new SMSF, then you’ll need to setup the fund in BGL Simple Fund 360. You’re probably already very familiar with this process, but if not, BGL does have a helpful knowledge centre you can follow. - in BGL cryptocurrency is already understood as an investment class, so there’s no additional setup needed.
Back in Syla, go the Tax Reports page, select the financial year, and click the Sync button. - once you press Sync, all crypto transactions in Syla will instantly feed through, completing the BGL crypto import. - you can sync as often as you like to keep the transactions up to date in BGL. Only new or updated transactions from Syla will be synced, so there’s never any duplicates.
You should also download the Crypto Tax Report PDF available in Syla. - this report contains a convenient summary of balances and tax outcomes directly from Syla. We’ll use this report to review that everything synced correctly into BGL.
No more write-off, so it’s time for a break ☕
You’ve just turned your past crypto accounting trauma, into transaction sync pleasure 😊.
Not only that, but you’ve just saved yourself at least a few hours (if not days) of manually entering buy and sell journals for each crypto trade.
Now that the crypto transactions are in BGL, you can put on your reviewer cap, and follow our instructions for a final check of your BGL 360 cryptocurrency transactions.
The information in this article reflects our understanding of existing legislation, proposed legislation, rulings and other tax law, as at the date of issue. In some cases, the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way.
The information provided in this article is purely factual in nature and does not constitute tax advice, financial product advice or legal advice. The information is not, nor is it intended to be, comprehensive or a substitute for professional advice on specific circumstances. If you require professional advice that takes into account your particular circumstances, you should consult an appropriate professional.