Balance difference in CryptoBooks
A Balance Difference arises when the balance reported by a connected exchange or wallet does not match the total of transactions recorded in CryptoBooks for that connection.
These differences do not necessarily indicate an error in your holdings, but they signal that further review is required to ensure your portfolio data and tax reporting are accurate.
Why Balance Difference Happen
Several factors can lead to a balance difference, including:
synchronization errors: temporary issues when fetching data from an exchange or wallet
incomplete data import: transactions may have been missed during initial setup or when connecting new accounts
manual adjustments: any changes made directly in CryptoBooks or on the exchange that were not automatically synced
delayed network confirmations: especially relevant for blockchain transactions that take longer to confirm
Understanding the underlying cause is crucial to maintaining accurate portfolio records and ensuring correct capital gains and losses reporting.
Identifying the Connection with a Difference
If a difference is detected, the system will flag the issue with a generic error alert associated with the specific connection.
Additionally, on the connection details page, you will see the exact amount of the difference highlighted in red in the "Difference" column, if present.
If the AI resolution method is active, this error will never be highlighted and it will be automatically corrected.
Resolving a Balance Difference
Once a difference is detected, you can take steps to reconcile the balance:
compare balances with transaction history: ensure all deposits, withdrawals, trades, and fees are properly recorded
correct missing or duplicate transactions: verify that each transaction is accounted for and adjust as necessary
re-sync accounts: often, refreshing the connection with the exchange or wallet resolves temporary discrepancies
Accurately matching account balances ensures your portfolio reflects the true value of your assets and that all tax calculations — including capital gains, losses, and staking rewards — are correct.
For a detailed explanation of the different methods available to correct differences, visit the following article.
Why Accurate Balances Matter
Maintaining accurate balances in your CryptoBooks portfolio is crucial. Ignoring balance mismatches can have several negative consequences:
misrepresented portfolio value: If balances do not reflect your true holdings, you may overestimate or underestimate the value of your investments, which can lead to poor financial decisions
inaccurate tax reporting: incorrect balances can result in miscalculated capital gains or losses, potentially causing errors in your tax filings or even triggering inquiries from the tax authorities
confusion in historical analysis: reviewing past transactions, tracking performance, or preparing reports for an accountant becomes much harder when balances are inconsistent
difficulty in planning trades or reallocations: Unreliable balances may affect your ability to plan purchases, sales, or transfers effectively
Addressing balance difference error promptly ensures that your portfolio remains reliable, transparent, and up to date, giving you full confidence in both your investment decisions and your tax reporting.