The Token Expert Method

1. Selection of Tools and Data Import

We start by selecting the right tools for your situation and importing your wallet data. We work with platforms like Octav and Koinly to ensure your transaction history is accurately captured and ready for analysis.

2. Identification of Transactions

We identify and categorize all your transactions to ensure complete coverage. Buys, sells, transfers, and on-chain activity — such as liquidity pooling, borrowing, repayments, and bridging — are all captured to support accurate and thorough reconciliation.

3. Client Collaboration

For transactions that cannot be confidently classified, we reach out to confirm the details with you. This step ensures the accuracy and completeness of your transaction history.

4. Protocol-Based Impact Calculation and Reconciliation

We analyze your activity within each protocol to capture relevant financial impacts, including interest income, interest payments, and foreign exchange gains or losses on debt repayments. All tax-relevant transactions are reconciled, and the results are consolidated into a summary table for review.

5. Data Validation

Our team validates the data table to ensure there are no errors or discrepancies in each digital asset at any given point in time, providing you with reliable and accurate records reflective of your transactions. .

6. Calculation of gains and losses

After validating your transactions, we calculate your gains and losses using the accounting method appropriate for tax residency. Whether it's FIFO, average cost basis, or another method, we ensure the calculation aligns with local tax regulations.

7. Cost Basis Reconciliation

We calculate your year-end asset values by starting with your opening balance and adjusting for trades, deposits, receipts, and transfers. This theoretical balance is then compared to your actual holdings. Any differences are investigated to ensure your records are complete and accurate.

8. Summary Preparation

We prepare a comprehensive summary of different types of income and expenses related to your digital assets for a given year, which can then be used by you or your accountant for tax reporting.

9. Journal Entries (For Businesses)

For corporate clients, we prepare journal entries that accurately reflect the impact of cryptocurrency transactions on your financial records. Entries can be delivered monthly, quarterly, or annually, depending on your reporting needs.

10. Tax Form Preparation (On Request)

Upon request, we provide the necessary data summaries for your Canadian federal and provincial tax forms related to digital assets. Our reports are designed to make tax preparation with your accountant or tax software as smooth as possible.