Follow a proven 6-step framework to achieve audit-ready crypto financials with TRES.
Why Proper Setup Matters
Digital asset accounting setup cannot be rushed. Shortcuts often lead to audit failures, compliance warnings, and costly misstatements.
- Inspector General reports have flagged documentation gaps and seizure errors tied to weak digital asset tracking.
- Confusion between IFRS and US GAAP for Bitcoin and other tokens, often treated as intangible assets, distorts financials and complicates audits.
- IRS Rev. Proc. 2024-28, effective January 2025, removed the older universal method, which had caused basis orphaning and incorrect gain or loss reporting.
Building without a structured method is like erecting a skyscraper without blueprints. It may look fine at first, then cracks appear under regulatory pressure.
The TRES 6-Step Implementation Process
This approach reduces implementation time compared to ad hoc attempts and prevents expensive rework.
- Asset Classification and Identification
- Basis Tracking and Cost Accounting Setup
- Fair Value Measurement Framework
- AML and CFT Compliance Integration
- Internal Controls and Documentation
- Audit-Ready Reporting Configuration
Section 1: Asset Classification and Identification
Start with precise configuration in TRES. Wallet-by-wallet tracking is now standard, and multi-chain activity requires clean mappings and strong audit trails.
- Map each wallet to the correct ledger account and entity.
- Set fiscal calendars and reporting currencies.
- Implement role-based access controls and segregation of duties.
- Configure automated reconciliation parameters to reduce manual edits.
- Define token classifications including custody, staking, and DeFi activity.
Section 2: Basis Tracking and Cost Accounting Setup
Connect wallets, exchanges, and custodians to TRES with secure read-only APIs for full visibility and accurate basis tracking.
- Use OAuth or key-scoped access with least privilege.
- Handle rate limits and verify completeness of imports.
- Cross-validate with blockchain listeners to catch gaps or duplicates.
- Confirm network selection, API key scope, and credential freshness.
- Pick a compliant basis method and lock rules to prevent orphaned lots.
Section 3: ERP Integration and Fair Value Measurement
Bridge blockchain data into your ERP through TRES.
- Use API or secure SFTP for the connection, depending on ERP type.
- Create classification rules for gains, expenses, transfers, and revenues.
- Define pricing sources, time stamps, and measurement hierarchies.
- Align posting schedules with close calendars and validate mappings.
Section 4: AML and CFT Compliance Integration
Run historical validation reports and align all data sources in TRES for a clean baseline.
- Identify duplicates, gaps, and pricing discrepancies.
- Document discrepancies, resolution steps, and final status.
- Attach AML/CFT checks and audit evidence to your records.
Section 5: Internal Controls and Documentation
Simulate a month-end close in TRES and push results to your ERP.
- Aggregate multi-chain data, reconcile balances, and verify postings.
- Resolve sync errors, mapping gaps, and timing differences.
- Capture evidence, approvals, and logs for audit readiness.
Section 6: Audit-Ready Reporting
Finalize reporting in TRES so audits are smooth and well-documented.
- Generate wallet-level subledgers with drillable support.
- Attach pricing sources and evidence to all key balances.
- Export standard packages for auditors and regulators.
Key Takeaways
- Wallet-level tracking and clean basis management are now required for compliance.
- Classification under IFRS and US GAAP still needs careful review and disclosure.
- The TRES 6-step framework improves speed, reduces rework, and withstands audit scrutiny.
Interested in TRES?
