↩️ This article is designed for Australian accounting professionals, and is part of our mega-guide on SMSF crypto compliance.
Sync data from Syla into BGL
If you haven't already, follow the steps in the previous article to automate crypto transactions from Syla into BGL.
Once that’s done, you can get yourself into review mode, and follow the steps here to ensure everything is correctly represented in BGL Simple Fund 360.
Review the Investment Summary Report
- Create an Investment Summary Report in BGL Simple Fund 360.
- Check that quantities of crypto closing balances shown on the Investment Summary Report match what is shown in Syla’s Crypto Tax Report.
- you should also check that the quantity in the closing balances are matching what is shown on the client’s account statements from the digital currency exchange.
- Check that the closing market values shown on the report are reasonably close to what is shown in Syla.
- the market values won’t be exactly the same, as the crypto pricing in BGL uses a different valuation source to Syla.
- you should also confirm that the market values appear reasonable, just in case one of the crypto ticker symbols has been translated across incorrectly.
This confirms that all transactions have been correctly sent through from Syla into BGL, with the correct final balances and market values.
Fixing missing Market Values
Although all the major cryptocurrencies are supported in both Syla and BGL, it’s possible that the market values for some of the less known cryptocurrencies to be absent.
Missing market values are an easy problem to solve in BGL:
- Review the Investment Summary Report for any market price that says 0.0000. This indicates that a market value is missing.
- In Syla’s Crypto Tax Report, there is a Closing Balances section that includes the Closing Balance and Market Value of each crypto asset on 30 June. Syla covers over 9,000 crypto assets, so there’s almost always a market value available.
- you can calculate the market price by dividing the market value by the closing balance quantity.
- Follow the instructions from BGL to add a manual price reference.
At this point, all the units, market price and market values in the Investment Summary Report have been validated, and are correct. ✅
As a final check, you can compare the total market value of the portfolio in BGL vs what is shown in Syla. You should expect the values to be approximately the same, but will differ slightly as BGL uses a different reference source for pricing data.
Review the Investment Income Report
The next step is to review that all crypto related income has been correctly reported:
- Create an Investment Income Report in BGL
- Compare the report to Syla’s Crypto Tax Report and confirm that:
- the Other Income shown in Syla is present in the Investment Income Report in BGL.
- confirm that the totals match up.
Enter manual adjustments for certain transactions
Almost all your crypto transactions will be synced between Syla and BGL, but there are a few specific transactions that still need a manual adjustment to enter.
You’ll need to do a manual journal for the following transactions, if present in the fund:
- Foreign Currency Gains or Losses
- Other Expenses
Fortunately, you only need to create a single manual journal to get each of these into BGL.
- Check Syla’s Crypto Tax Report to see if there are any Foreign Currency Gains or Losses. If there are, you’ll need to create a manual journal in BGL for the resulting income or expense.
- Check Syla’s Crypto Tax Report to see if there are any Other Expenses listed. If there are, you’ll need to create a manual journal in BGL for the expense item.
At this point we’ve now confirmed that the tax outcomes have all been accurately captured in BGL ✅
Review the General Ledger
The last step is to confirm that there is no net movement in the data clearing accounts, as you don’t want these to show up in the final SMSF statements.
- Prepare the General Ledger in BGL
- Check if there is any non-zero amounts in the data clearing accounts related to the crypto activity.
- If there is a net amount, then you should start by reconciling any cash movements between the SMSFs bank account and the digital currency exchange.
- Finally, you can create a manual journal to offset the data clearing accounts to zero.
Finish in BGL
Everything crypto related is finished, so now you can finish off the fund’s compliance just as you normally would.
If you encounter any issues, please reach out to our team at Syla, our support team of Australian Accounting and Tax professionals will be able to help you get things sorted.
This article was the final part of our mega-guide on solving compliance for crypto SMSFs, you can go back to the first article here -> Compliance requirements for a crypto SMSF