Accountancy and cryptoassets: Where the opportunity lies
Cryptocurrency and digital assets are taking over, so should accountants take the plunge and seek out a new opportunity?
Cryptocurrency and blockchain are revolutionising finance at unprecedented rates. However, with such new technology sweeping the world at such a fast rate, tax regulations and laws are not well-known. Could this provide accountants with an opportunity to be ahead of the game?
Crypto and blockchain are presenting a host of growth opportunities for individual accounts and firms alike. Whether this is with the new blockchain technology or just heading down an increasingly popular niche. Here are ways that we think crypto could be an opportunity for accountants.
HMRC is changing
HMRC has tightened its grip on cryptocurrency recently, this may increase as interest in cryptocurrency increases, too.
They still do not consider crypto assets as currency or money, nor do they consider it under the same umbrella as gambling. This essentially means that profits or gains from crypto assets are taxable — this isn’t widely understood, especially for novices. Thus, an accountant whose expertise is in digital assets and crypto would be a valuable addition to any avid crypto seller and buyer.
There are many examples of where people have not been aware of tax rules (outside of crypto, too). This honest mistake could result in fines and even criminal prosecution. A dedicated crypto accountant can absolutely help you to avoid any issues.
Furthermore, HMRC will likely be changing for a very long time. Tax laws and rules are an ever-evolving thing. It’s likely that people will constantly be seeking out an accountant that is kept up to date with the latest laws and regulations regarding tax. Again, showcasing an important opportunity for accountants to delve into the crypto sphere.
Blockchain technology can enhance accounting
Blockchain can create new opportunities in a different way, too. The technology is being explored by accounting firms and it is providing many opportunities. Ultimately, blockchain can actually be defined as an accounting technology — another reason why accountants should capitalise on it.
Blockchain has the potential to enhance the accounting profession as a whole. It can reduce costs associated with ledgers as well as help accountants gain clarity on various jobs. Lastly, blockchain technology is freeing up resources in recordkeeping, so accountants can focus more on valuation and planning. You can see blockchain as a replacement for reconciliation and bookkeeping work.
Not only that, but accountants can also become advisors to companies who may be considering incorporating blockchains into their work themselves. For instance, you can provide valuable advice on advantages and costs. As an accountant with knowledge of blockchain as well as a mix of experience with both business and financial aspects, you are in a unique, prime position to be a key advisor and a valuable asset to a team.
Blockchain should absolutely be explored as a new technology and business opportunity.
Still a growing opportunity
Crypto is still evolving and growing. New regulations are coming into the light, and the crypto market is increasingly becoming more mainstream. It is likely that accountants will begin to see their existing clients get involved with crypto.
Building expertise in the crypto field will set you out from the crowd and put you ahead of the game, too.
We want to help accountants feel empowered to make this career change, too. We pride ourselves on critical thinking, which can help accountants not only be knowledgeable about all regulations and compliance laws but also be prepared for any future changes. We provide you with information on how you can advise your clients, how they can achieve their financial goals, and how they can stay in line with tax rules.