Professional services isn't one size fits all. That's because each firm has it's own approach to client engagements and each client is unique. Even within your own firm, you'll likely end up adopting multiple workflows depending on:
client preference.
scope of crypto activity.
client budget.
Let's have a look at the different workflow models that can be supported in Syla and the advantages and disadvantages of each.
Client does all the work
Recommended - for cost-conscious clients with simple investment activity.
In this workflow, you simply refer your client to sign up for an account on Syla and prepare their own Crypto Tax Report.
Your client will be responsible for setting up an account on Syla, importing their transaction data and generating their Crypto Tax Report. Once they have finished, they can send you a copy of the final report that you can use to complete their tax return.
If your client gets stuck or has questions, they can reach out to our support and we will assist them.
Benefits
This is the most cost-effective approach for your client, as they won't be paying your hourly rate to do their report.
Client is directly responsible for the subscription fee.
This is the preferred method for smaller investment portfolios, otherwise the compliance costs are too high compared to the size of portfolio.
Disadvantages
Client must reconcile transactions and produce a Crypto Tax Report themselves.
Tip: If your client isn't sure they've done everything correctly, then they can easily invite you to their account to do a final review.
You do the work for your client
Recommended - for clients who'd rather have their accountant do everything for them.
In this workflow, you as the accountant, will request data from your client and generate the report in Syla.
The client doesn't need to have any knowledge of Syla, you can simply request their transaction data from their exchange platforms. You then import that data into Syla and generate the tax report yourself.
This workflow is preferable for some clients that don't want to sign up to another software product, so it can be simpler for them. It also gives you more control to make sure everything is being imported and treated correctly.
Benefits
High standard of work can be maintained, particularly for more complicated activity that the client is not comfortable reconciling themselves.
Client does not need to sign up for another software product.
Disadvantages
You as the accountant must pay the subscription fee and on-charge to your client.
Tip: Ensure you get the right transaction exports from your client by sending them instructions to follow. You can copy and paste the file export instructions for each data source in Syla and provide them to your client.
Collaborate with the client
Recommended - if the client would like you to review their crypto activity.
In this workflow you can collaborate with the client in Syla. This is really helpful if you need the client to setup their API connections for different data sources.
Benefits
Less communication latency requesting documents and data sources.
Client is directly responsible for the subscription.
How to collaborate with your client in Syla
Syla makes it easy to invite your client so you can both have access to collaborate in the same account.
Read More: Inviting members to an Account
Outsource the work
Recommended - for very complicated crypto activity.
If the client activity is too complicated for your team, then it may be time to outsource the work to a specialist. In this model, you refer the reconciliation work to a specialist who will reconcile the client's activity and prepare a Crypto Tax Report for you. You can then use this to complete their tax return.
Benefits
Maintain the client relationship without having to do the crypto compliance work.
Risk and liability shifted to specialist.
No need to train internal expertise.
Disadvantages
Additional costs to engage the specialist firm.
Back and forth communication latency.
Tip: Reach out to our support if you'd like us to put you in contact with a specialist who can assist you.