1. Add ALL your wallets and exchange accounts!
For an accurate tax report, the first and most important thing is to add your complete transaction history. Koinly needs the transaction history from all previous years of trading and for all of your wallets.
We have written up an article that explains why Koinly needs all this data, you can find it here.
2. Verify that your data has been imported correctly
Some exchanges do not provide your full transaction history via API and some provide bits and pieces of it in separate csv files. It's easy to make mistakes which is why you should verify that everything got imported correctly in the end.
Example: Binance doesn't allow retrieval of your fiat purchases via their API which can result in missing purchase costs. Huobi only provides the last 90 days of data etc. You will see known issues when setting up a new API connection.
Here's how you can quickly determine if all your data has been imported:
Navigate to the Wallets page in the Koinly app
Click on a wallet to see your balances
Compare the balances shown on Koinly with your actual balances
If everything was imported correctly the balances should match. If they don't match then you can follow this article to find the problem.
Note that minor differences in the balances are normal, you only need to worry if the differences are very large.
Tip: If you are using auto-sync, then Koinly carries out the balance comparison automatically. You will see a yellow icon next to a wallet if Koinly detects that the balances are not the same:
3. Review some transactions
You obviously don't want to go over hundreds of pages of transactions so here's what you should do instead:
Go to the Transactions page and filter transactions by Deposits & Withdrawals, also set the Label filter to No tag - this will filter out most of your transactions (costs, trades, airdrops etc).
Look for any large withdrawals or deposits that you believe are actually transfers between your own wallets but are appearing as either a deposit or a withdrawal due to some issue. Learn how transfers work in Koinly to fix these.
Also look for any deposits or withdrawals coming from Staking pools and mark them as either Sent to Pool or Received from Pool. This will prevent profits/losses from being calculated for these txns. Note: do not do this for liquidity tokens as they are handled differently, these tags are only for staking related txns.
Tag any Airdrops, Forks, Mining income or Rewards. Koinly does this automatically in most cases but sometimes the data imported may not tell Koinly that a transaction is a Reward or Mining income.
Now clear all filters and Sort transactions by Highest gains. This will show any transactions where you made significant gains. Look for any trades/withdrawals with unrealistically high gains.
4. Review warnings on the Tax Reports page
Now head over to the Tax Reports page and select the year that you want to download a report for (also look at some of the previous years).
If Koinly has detected some issues then you will see a warning like this:
Click on the Learn more link to see how to resolve it.
5. All done!
If you are not confident that you have imported things correctly then we offer an Expert Review addon that you can purchase from the plans page. One of Koinly's experts will then go over your data in detail and ensure everything looks good and help resolve any issues.