Glossary

Quick reference for terms you’ll encounter in CryptaCount. Organized by topic.

Cost Basis & Valuation

Cost basis The original value of an asset for accounting purposes — typically the purchase price plus transaction fees. Used to calculate gains and losses on disposal.

FIFO (First-In-First-Out) A lot selection method that disposes the oldest acquired units first. The default for US tax reporting.

LIFO (Last-In-First-Out) A lot selection method that disposes the most recently acquired units first. Can defer gains in falling markets.

HIFO (Highest-In-First-Out) A lot selection method that disposes the highest-cost units first. Minimizes taxable gains by consuming expensive lots before cheap ones.

Weighted Average (WAVG) A cost basis method that blends all purchases into a single average cost per unit. Each new purchase recalculates the average. Mandatory in some jurisdictions (France, Japan).

FMV (Fair Market Value) The price an asset would sell for on the open market. In CryptaCount, the FMV method is a mark-to-market approach that revalues holdings to current market price at each reporting date.

NRV (Net Realizable Value) The estimated selling price minus costs of disposal. Under IAS 2, inventory is valued at the lower of cost and NRV. CryptaCount’s NRV methods support two-way impairment with reversal.

Specific Identification A lot selection method where you manually choose which purchased lot to match against each sale. Gives maximum control over tax outcomes.

Lot A discrete batch of tokens acquired in a single transaction. Each lot tracks quantity, unit cost, acquisition date, and remaining balance. Lots are consumed (fully or partially) when you dispose of the asset.

Disposal Any event that reduces your holdings — a sale, swap, payment, gift, or transfer out. Disposals trigger gain or loss recognition.

Accounting & Ledger

Rollforward A report showing how a balance moved from opening to closing: opening balance + acquisitions − disposals ± adjustments = closing balance. Available per token.

Journal entry A record of a financial transaction in double-entry bookkeeping. Every entry has at least one debit line and one credit line that must balance.

Double-entry bookkeeping The accounting system where every transaction is recorded in two accounts — a debit to one and a credit to another. Ensures the books always balance (total debits = total credits).

Chart of accounts The complete list of GL accounts used by a workspace. Organized by type: assets, liabilities, equity, revenue, and expenses.

GL account (General Ledger account) A named account in the chart of accounts that tracks a specific category of value — e.g., “Crypto Assets,” “Trading Revenue,” or “Gas Fee Expense.”

Impairment A reduction in the carrying value of an asset when its market value falls below its book value. May be one-way (write-down only) or two-way (write-down with reversal) depending on the accounting method.

Mark-to-market Revaluing assets to their current market price at each reporting date. Under the FMV method, both unrealized gains and losses are recognized immediately.

Realized gain/loss The gain or loss that occurs when an asset is actually disposed of. Calculated as proceeds minus cost basis.

Unrealized gain/loss A gain or loss that exists on paper because the market price has changed, but the asset hasn’t been sold yet. Recognized only under mark-to-market methods.

Opening balance The starting balance of a GL account at the beginning of an accounting period. Equals the closing balance of the previous period.

Retained earnings The cumulative net income of a company minus dividends. During year-end close, net income (revenue minus expenses) is transferred to the retained earnings account.

Periods & Close

Accounting period A defined time span (usually a month) for which financial statements are prepared and the books are closed.

Period close The process of finalizing an accounting period — running validation checks, ensuring data integrity, and sealing the period against further changes.

Soft close An intermediate period status where new transactions are blocked but adjustments and corrections are still allowed.

Locked period A permanently sealed period that cannot be reopened or modified. Typically applied after an audit.

Wallets & Blockchain

Wallet A blockchain address that CryptaCount syncs and tracks. Wallets are workspace-scoped and can cover multiple chains.

External wallet A blockchain address not directly synced by CryptaCount but referenced in transactions — for example, a counterparty address in a transfer.

CEX (Centralized Exchange) A custodial exchange like Coinbase, Binance, or Kraken. CryptaCount imports CEX transaction history alongside on-chain data.

DeFi (Decentralized Finance) Financial protocols running on smart contracts — lending, borrowing, trading, liquidity provision. CryptaCount’s DeFi module classifies and accounts for DeFi interactions.

LP token (Liquidity Provider token) A token received when providing liquidity to a DeFi pool. Represents your share of the pool and accrues fees. CryptaCount tracks LP positions and their underlying value.

Staking Locking tokens to support a blockchain network (proof of stake) in exchange for rewards. CryptaCount classifies staking deposits, withdrawals, and reward income.

Bridge A protocol that moves tokens between different blockchains. CryptaCount detects and matches bridge transactions across chains.

Airdrop Tokens distributed to wallet addresses for free — typically as a marketing promotion or governance distribution. Classified as income at the fair market value on the date received.

Organization

Workspace The primary organizational unit in CryptaCount. Each workspace has its own wallets, transactions, chart of accounts, and accounting settings. Most data is workspace-scoped.

Company The top-level entity. A company can have multiple workspaces. Billing and team management are at the company level.

Practice mode An account type for accounting firms and auditors that provides access to multiple client workspaces from a single account.

Reconciliation The process of verifying that book records match an independent source of truth — typically on-chain balances. CryptaCount runs 12 automated reconciliation checks.

Tax & Compliance

DAC8 The EU Directive on Administrative Cooperation (8th amendment) — requires crypto-asset service providers to report user transaction data to EU tax authorities. CryptaCount exports DAC8-compliant XML.

CARF (Crypto-Asset Reporting Framework) An OECD framework for the automatic exchange of crypto-asset tax information between jurisdictions. Similar to CRS but specific to crypto.

MiCA (Markets in Crypto-Assets) The EU regulatory framework for crypto-asset service providers. Establishes licensing, consumer protection, and reporting requirements across the EU.

IFRS (International Financial Reporting Standards) The accounting standards used in most countries outside the US. Relevant CryptaCount standards: IAS 2 (inventories), IAS 36 (impairment), IFRS 13 (fair value).

GAAP (Generally Accepted Accounting Principles) US accounting standards. Relevant to CryptaCount: ASC 350-60 (digital assets), ASU 2023-08 (fair value measurement for crypto assets).

Form 8949 IRS form for reporting sales and dispositions of capital assets. CryptaCount generates this as a ready-to-file PDF.

Schedule D IRS form summarizing capital gains and losses. Aggregates Form 8949 detail into net short-term and long-term figures.