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Australian accountants need to improve their crypto expertise to meet increasing market and industry demands, an accounting professional has cautioned.
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Accountants lack crucial crypto knowledge, warns industry professional
03 September 2024
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11 minute read
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Based on recent research, Australia currently has the highest rate of crypto ownership which is increasing the demand for services in this area from accountants.
CEO of Platinum Accounting Australia, Coco Hou said as Australia's crypto ownership continues to increase, accountants will need to equip themselves with the right knowledge and skills
Hou said according to research, Australia holds more crypto ownership than the UK and US at 23 per cent and more people are seeking accountants with this knowledge.
“Unfortunately, the number of accountants with crypto expertise is still below where it needs to be,” she said.
“With such high ownership of crypto in Australia this figure is only going to increase and the ATO is developing more sophisticated systems and means to track ownership and transactions across centralised and decentralised exchanges and peer to peer.”
Due to cryptocurrency ownership in Australia continuing to grow, taxpayers need to source the correct point of advice that is currently lacking, according to Hou.
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Taxpayers need to understand obligations and the tax implications of their actions if owning crypto, which has presented a gap in the market and the knowledge of accountants.
In Australia, cryptocurrencies are considerable taxable assets that require accountants to understand and report transactions accurately to comply with ATO requirements.
Due to crypto transactions such as buying, selling, and trading being able to trigger capital gains events, it is crucial proper knowledge is transferred from industry professionals to taxpayers about CGT calculations and potential liabilities.
Hou said Australian accountants have no choice but to develop their knowledge to be able to provide the necessary guidance.
“Advising clients on maintaining detailed records of all crypto transactions is essential for accurate tax reporting and audits,” she said.
“Accountants can provide informed advice on the financial implications of investing in cryptocurrencies, including risk management and portfolio diversification.
“Understanding the impact of crypto investments on clients’ long-term financial goals and retirement planning is crucial.”
According to Hou, accountants must be across the regulatory updates, regulatory compliance, risk management, technology integration, client demand, and ethical considerations when advising clients about crypto.
Hou said as cryptocurrency adoption increases, accountants must be equipped with the knowledge and skills to navigate the complexities of these assets.
“As more clients invest in cryptocurrencies, they will seek knowledgeable professionals to help manage their finances and tax obligations,” she said.
“By staying informed and proactive, accountants can provide valuable guidance to their clients, ensuring they make informed decisions and remain compliant with all relevant regulations.”
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