Accounting advisor CPA.com and cryptocurrency accounting automation startup Lukka partnered to jointly launch a crypto asset tax preparation tool.

CPA.com announced the partnership with Lukka in a press release published on Dec. 9. Per the release, the “LukkaTax for Professionals” crypto asset preparation tool for accountants aims to address issues currently faced by companies in the crypto industry.

Specifically, CPA announced plans to start providing services for valuing digital assets and assurance around blockchain technology.

A pressing need

CPA.com states that it decided to engage with Lukka because of the growing portion of the American population that owns and trades crypto, and thus will need to claim taxes on their holdings. The firm’s president and CEO Erik Asgeirsson noted that the sharp increase:

“The need for firms to understand the crypto asset category was greatly accelerated with the IRS issuing thousands of compliance letters recently. The combination of an institutional-grade solution from Lukka with our firm enablement capabilities will help firms address these complex client needs.”

According to the announcement, the tool’s browser dashboard allows tax professionals to make updates across multiple clients and upload files to cut data manipulation and mapping times. Lukka CEO noted the importance of accurate crypto tax assessment for certified public accountants (CPAs):

“We know that every CPA will need to pose the virtual currency question to their clients [...] With tens of millions of crypto asset holders in the United States, thousands of these CPAs will then have to deliver accurate crypto tax calculations. It’s challenging and you absolutely have to be correct.”

CPA.com is a subsidiary of the American Institute of Certified Public Accountants, a member association for the accounting profession.

The increasing need for correct cryptocurrency tax management has created a new market for specialized accounting services. CPA.com is not the first company trying to capitalize on this new need.

As Cointelegraph reported at the end of November, Missouri-based software maker CryptoTrader.Tax has launched a new product facilitating cryptocurrency tax reporting.

Program Will Provide Education and Tools for Practitioners as Virtual Currency Usage Grows

SEATTLE (Dec. 09, 2019) – CPA.com today announced a strategic alliance with Lukka to deliver crypto asset solutions to firms. Beginning in mid-January, CPA.com and Lukka will roll out 'LukkaTax for Professionals' – a virtual currency tax preparation tool built specifically for accountants.

Lukka, a New York-based crypto asset software and data solutions provider, built the world's first commercial virtual currency tax calculator. CPA.com recognized a growing need to support firms and their clients in this emerging area and, with input from AICPA teams, worked closely withLukkato help guide the interface and functionality of the professional version, which is designed to serve multiple clients. While the crypto asset program initially will focus on the LukkaTax offering, other capabilities for valuing digital assets and providing assurance services around blockchain will eventually be included.

"Through our annual Blockchain Symposium, we have been framing the discussion around blockchain use cases," said Erik Asgeirsson, president and CEO of CPA.com. "The need for firms to understand the crypto asset category was greatly accelerated with the IRS issuing thousands of compliance letters recently. The combination of an institutional-grade solution from Lukka with our firm enablement capabilities will help firms address these complex client needs."

CPA.com and Lukka are forming this alliance because it is estimated that between eight and 14 percent of the U.S. population own crypto assets, according to recent polls by Harris Insights/Gem and Finder Inc., respectively. This year the IRS is adding a new question about virtual currencies to its Form 1040 Schedule 1, a recognition of the growing ownership of digital assets. The number is expected to grow swiftly in the years ahead, and the IRS has made it clear it is stepping up enforcement on taxpayers who haven't made a good-faith effort to declare virtual currencies in tax calculations.

The LukkaTax for Professionals platform enables firms of all sizes to comfortably on-board and provide service to individuals with a single to thousands of digital asset transactions through a guided step-by-step experience. A browser-based dashboard allows tax professionals to seamlessly make updates across multiple clients and, with file upload options, practitioners can reduce time-intensive data manipulation and mapping.

"We know that every CPA will need to pose the virtual currency question to their clients," said Jake Benson, founder and CEO of Lukka. "With tens of millions of crypto asset holders in the United States, thousands of these CPAs will then have to deliver accurate crypto tax calculations. It's challenging and you absolutely have to be correct."

The crypto asset partnership was announced at Digital CPA, CPA.com's signature conference for practitioners interested in accounting innovation.

CPA.com and Lukka are offering a free Jan. 13 webinar on virtual currency tax preparation and the tools practitioners need to help clients comply this tax season. Register for the CPE-eligible event at www.CPA.com/CryptoTax.

About CPA.com

CPA.com brings innovative solutions to the accounting profession, either in partnership with leading providers or directly through its own development. The company has established itself as a thought leader on emerging technologies and as the trusted business advisor to practitioners in the United States, with a growing global focus.

Our company's core mission is to drive the transformation of practice areas, advance the technology ecosystem for the profession, and lead technology research and innovation efforts for practitioners.

A subsidiary of the American Institute of CPAs, the company is also part of the Association of International Certified Professional Accountants, the world's most influential organization representing the profession. For more information, visit CPA.com.

About Lukka

Founded in 2014, Lukka is a trusted, blockchain-native technology company that delivers leading products for the crypto asset ecosystem. Lukka's products automate and optimize accounting, audit and tax processes for investors, funds, fund administrators, OTC and proprietary trading firms, exchanges, miners, protocols and accounting firms. Lukka's premier solutions enable the transformation of distributed and decentralized data into auditable information within a highly scalable and secure SOC 1 Type 2 infrastructure. Lukka is based in New York City.

For information about Lukka, visit www.lukka.tech.

Javier Goldin, a proponent of virtual CFO and controller services, has been named the 2019 recipient of CPA.com’s Innovative Practitioner Award, which recognizes "innovation in process, services or technology implementation in public accounting."

Goldin is the founder and managing partner of the Goldin Group, a Bethesda, Maryland-based firm focused on professional services and nonprofit organizations. Goldin will be invited to attend the 2019 Digital CPA Conference, held Dec. 9-11, 2019, at the Hyatt Regency Bellevue outside of Seattle, as a guest.

“While Javier has been an early adopter of technology in his firm, he also understands that innovation involves more than just rolling out the latest solutions,” stated Erik Asgeirsson, president and CEO of CPA.com. “Innovative firms combine emerging technologies with new methods to enable a better client experience. Javier and our other two honorees embody this approach.”

Bernard Ackerman, of BNA CPAs & Advisors in Rock Hill, South Carolina, was voted the second-place winner of the Innovative Practitioner Award. Michael Moffitt, president of MSM Advisors in Lawrenceville, Georgia, was named the third-place winner.

For more on the honorees, head to CPA.com's site here.

Javier Goldin Recognized for Creative Approach to Outsourced Accounting Services Model

NEW YORK (Nov. 21, 2019) – Javier Goldin, CPA, an early champion of virtual CFO/controller services, has been named the 2019 recipient of CPA.com's Innovative Practitioner Award, which recognizes innovation in process, services or technology implementation in public accounting.

Goldin is founder and managing partner of the Goldin Group LLC, a Bethesda, Md.-based firm that focuses on professional services and nonprofit organizations. The firm designs customized solutions for each client, going beyond traditional outsourcing to create a blended team approach that incorporates technology, CPA expertise, and advisory consulting on business decision-making that extends to human resources and training.

Bernard N. Ackerman of BNA CPAs & Advisors was voted the second-place winner of the award. Ackerman's Rock Hill, S.C.-based firm was an early convert to cloud solutions and is committed to driving efficiencies and adding capabilities that improve client service.

Michael S. Moffitt, president of MSM Advisors, LLC, was named the third-place winner. His Lawrenceville, Ga.-based firm provides business advisory services to small and midsized businesses, with an emphasis on long-term financial goals.

"While Javier has been an early adopter of technology in his firm, he also understands that innovation involves more than just rolling out the latest solutions," said Erik Asgeirsson, president and CEO of CPA.com. "Innovative firms combine emerging technologies with new methods to enable a better client experience. Javier and our other two honorees embody this approach."

Goldin will be invited to attend the 2019 Digital CPA Conference as a guest. This year's event will be held Dec. 9-11, 2019, at the Hyatt Regency Bellevue outside Seattle.

Award winners were chosen primarily through a vote of their peers.

To read more about the three honorees, please visit the Innovative Practitioner Award page. More information about the Digital CPA Conference can be found at digitalcpa.com.

About CPA.com

CPA.com brings innovative solutions to the accounting profession, either in partnership with leading providers or directly through its own development. The company has established itself as a thought leader on emerging technologies and as the trusted business advisor to practitioners in the United States, with a growing global focus.

Our company's core mission is to drive the transformation of practice areas, advance the technology ecosystem for the profession, and lead technology research and innovation efforts for practitioners.

A subsidiary of the American Institute of CPAs, the company is also part of the Association of International Certified Professional Accountants, the world's most influential organization representing the profession. For more information, visit CPA.com.

Everywhere you look these days, it seems like you can find people making big investments in the future of accounting, putting up money and time and effort to innovate in just about every area of the profession.

Think of the Big Four spending millions on artificial intelligence, cognitive computing and the data-based tools and services of tomorrow, or the American Institute of CPAs and its firm partners spending tens of millions to build their Dynamic Audit Solution and completely revamp the audit. Or how about those Top 100 Firms that are merging in non-accounting businesses that focus on everything from IT security to marketing to HR services? I need hardly mention the software providers, from big players like Wolters Kluwer and Thomson Reuters to new upstarts like botkeeper and Mindbridge AI, that are pursuing accounting innovation on a multitude of fronts.

So, what are you doing to build the future of accounting?

Now, most CPA firms are small busineses, and obviously, no one expects them to invest millions in capital in creating innovative tools or new services or groundbreaking business models. But that doesn’t mean that smaller firms and sole practitioners should or can afford to leave all the investment to the big guys. No matter what size your practice is, you can and must put something into building your own future within the profession of the future.

Make no mistake: This will require both money and time. Not millions of dollars, to be sure, and you won’t need to quit your day job to focus on the future full-time, but you’ll need to build funds for innovation into your budget, and time for it into your calendar. Here are a few ways to start making an investment now:

• Set aside an hour a week. Reserve a space on your calendar where you’ll do nothing but read or think or even talk in a small group about what the future of your firm and the profession will look like. Need conversation starters? Look no further than the next item.
• Read a book — or 10. Amazon will be happy to guide you to a thousand different titles on everything from blockchain, AI and the subscription economy to value pricing, the evolution of the modern advisory services firm, or how to build your own app.
• Attend a conference. There are plenty of great conferences in the accounting space that are focused on the future, like the AICPA’s Engage and Digital CPA gatherings, or Woodard Events’ Scaling New Heights, and the annual Accountex show. Vendor user conferences and state society events are also great places to explore. Go with specific questions you want answered, but also keep your eyes and your mind open — and be prepared to put in some very full days to get the most out of your time and money.
• Test an app. Find an application that purports to solve one of your or your clients’ pain points, and dive into it on a trial basis.
• Invest in new skills. If your firm is of any size, chances are you can find an employee who would be eager to learn the latest in marketing techniques, or how to code, build a blockchain, or conduct high-level data analysis. And in small or solo practices, you yourself can benefit from continually expanding your skill set — just remember to go beyond merely keeping up your technical chops to really explore new areas.

These will all take commitments of time and money — but they should be within the reach of even the most modest practitioner. And while they may not mean that you personally will reshape the entire accounting profession, they should help make sure that when those big investments I mentioned earlier begin to pay off, you won’t get left behind — and you’ll be in a better position to capitalize on them.