Corporate accounting and consultancy firm Ernst & Young is rolling out a new accounting solution designed to help businesses manage their crypto assets.
EY announced in a press release this week that its new crypto accounting tool targets the tax preparation process. Dubbed the EY Crypto-Asset Accounting and Tax (CAAT) solution, the tool enables institutional clients to manage and report on crypto assets held on their balance sheets, while also supporting smaller entities and individuals with crypto assets.
The company noted the solution was developed in response to a growing number of clients with cryptocurrency. The CAAT solution automates data collection and automatically generates reports for visibility and analytics, while supporting IRS tax return preparation.
“The initial validation we have received from the market has been phenomenal, but it only represents the beginning,” said EY Global Blockchain Tax Leader and Partner Michael Meisler in a statement. “EY professionals and clients alike are eager to leverage this technology. EY CAAT is the hallmark [of] our efforts in crypto-assets and blockchain from a tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients.”
Asset management firms are in particular need of a reporting and tax preparation tool that supports crypto assets, the company said.
In another statement, EY Americas Vice Chair of Tax Services Marna Ricker said the solution reflects EY’s broader efforts to expand its footprint in the cryptocurrency industry.
“EY CAAT exemplifies our commitment to exceptional client service in a changing landscape,” Ricker noted. “We are excited to offer an innovative technology specifically to address our clients’ needs in the crypto asset space.”
EY added that the software is the result of the acquisition of a range of acquired technology assets and related patents led by EY Foundry, the EY Tax corporate venturing unit.