How to Change Your Accounting Strategy on NODE40 Balance
- Andrea Elliott
NODE40 allows users to upload their crypto transactions using 4 different accounting strategies:
FIFO - Default setting "FIFO" stands for first-in, first-out, meaning that the oldest received digital currency is recorded as sent first.
HIFO - The HIFO method sells the highest cost assets before others. When choosing this method, if you acquired assets throughout the year at various amounts, your tax obligation may be lower when you dispose of the assets. Over time, as you dispose of the highest-cost assets, taxes will be owed on the lower values assets.
LIFO - "LIFO" stands for last-in, first-out, meaning that the most received digital currency is recorded as sent first.
LOFO - The Lowest Cost, First Out method sells the lowest cost assets before others. When choosing this method, if you acquired assets throughout the year at various amounts, your tax obligation may be higher when you dispose of the assets. Over time, as you dispose of the lowest-cost assets, taxes will be owed on the higher values assets.
*We recommend consulting your accountant before changing your accounting strategy*
PLEASE NOTE:
Accounting strategy settings must be customized individually for an exchange when a strategy other than FIFO is preferred. This setting is FIFO by default, but after adding valid API keys, can be adjusted by activating the advanced options before initiating a new import.
The accounting strategy setting must be chosen BEFORE the data has been uploaded to the user's account. The setting cannot be changed once the data has been uploaded. If you would like the data to reflect a different strategy, you must delete any existing ledgers, change the setting using the steps below, and re-upload.
Video Walkthrough:
Step-by-step:
How to Select a Different Accounting Strategy
From the main portfolio screen, click +New Ledger and choose the appropriate source.
NOTE: Depending on the source selected, you may see an option that says: “Automatically import transaction data using the most common options.” If you see this option and would like to change your Accounting Strategy, this box must be un-checked in order for the advanced settings mentioned in step two to be selected.
On the next screen (on the right hand side) activate the switch that says "Advanced Settings" (Switch will turn green).
Once the switch is green, the advanced accounting strategy settings will appear. Select your preferred methodology.
Upload data following the necessary steps for your chosen source.