Transaction Analysis: The Importance of Understanding
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Transaction Analysis: The Importance of Understanding Digital Cash Flows

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Transaction Analysis: The Importance of Understanding Digital Cash Flows

analisis transaksi

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In the world of business and crypto assets, it is essential to understand transaction analysis.

The analysis of this transaction can be known through the accounting method and later used as a record of business reports to observe the company’s financial status.

In the accounting field, this analysis will record various company financial data, from income and spending to expenses.

Therefore, this type of data will be very important to be developed as a source and material for financial reports.

So, to learn more about the importance of transaction analysis in the crypto world, see the full review below.

What is Crypto Asset?

Crypto assets are virtual currency as well as digital assets.

Transactions with crypto assets are secure because they use a cryptographic system or secret code.

Typically, the transaction process on digital assets takes place peer-to-peer or without going through a third party.

Please note crypto assets in Indonesia also cannot be used as legal tender.

The way to transact with digital assets is by converting crypto assets into Rupiah.

What is Transaction Analysis?

what is transaction analys

The definition of transaction analysis is one of the stages in the accounting cycle, which summarizes various data reports in it.

Transaction analysis also collects data from various financial transactions, ranging from income, operational costs, expenses, and asset purchases, to taxes.

From these reports, management will obtain information regarding the effect of these transactions on the general ledger.

In this case, when analyzing each economic event, the financial manager will study how it impacts the accounting equation, which must remain balanced after recording each transaction.

Identifying and analyzing each of these transactions can help the financial manager determine how this affects the owner’s equity and several assets and liabilities.

Basic Concepts of Transaction Analysis in Crypto Assets

The basic concept of transaction analysis is closely related to the process.

In this case, transaction analysis will review and perform research related to data and accounting and financial elements.

Furthermore, the basic financial reports that are available and obtained will enter the evaluation and recording stages.

At this stage, records (reports) will be made, which will be included in a follow-up journal later.

Thus, transaction analysis in accounting can be referred to as an initial stage of a reporting activity.

The data entered and submitted is the most basic and is based on the facts at the company.

Advantages and Disadvantages of Transaction Analysis

The following are some of the advantages and disadvantages of analyzing transactions on crypto assets, including:

1. Advantages

Some of the advantages are as follows:

  • Suspicious activity detection

Transaction analysis can help identify suspicious activity in crypto networks, such as money laundering or illegal use.

  • Help monitor portfolio performance

By examining crypto transactions, transaction analysis can help users monitor their portfolio performance and understand their spending patterns.

  • Increase market insight

Transaction analysis can also help understand market trends and crypto user habits, such as the most used coins and specific user applications.

2. Disadvantages

Meanwhile, there are some drawbacks of transaction analysis, including:

  • Difficulty in identifying the account owner

Since transactions in crypto are not linked to personally identifiable information, it becomes challenging to identify the account owner associated with a particular transaction.

  • Transaction data is only sometimes complete.

Transaction data in crypto networks can be incomplete because transactions are carried out anonymously, and sometimes users change their addresses.

  • There are different transaction fees.

Transaction fees in crypto networks can vary depending on the transaction’s timing, size, and complexity.

This can make transaction analysis difficult to perform consistently.

  • Challenges in analyzing complex transactions

Analysis of more complex crypto transactions can require technical expertise and a deep understanding of crypto networks.

That way, even though the analysis of crypto transactions has some advantages, users need to understand these disadvantages to make an accurate and useful analysis.

The Importance of Transaction Analysis in Crypto Assets

Analysis of accounting transactions or analysis of transactions is very important.

These are some of the benefits related to the need for transaction analysis, which is as follows:

1. Knowing the financial position of a particular period

The first benefit is finding out a certain period’s financial position.

For example, a company wants to check financial activities for a full year so that they can use transaction analysis.

The reason is, in the process, this analysis will check several company income and expenditure data, and thus the company will be able to understand its financial position.

2. Analyze the company’s weaknesses

This analysis can also be used to analyze the company’s weaknesses.

For example, a company has just released a new product, but the new product is inferior to the old one.

If the production continues to be forced, this new product will be detrimental.

In this case, early analysis activities can help the company to find out where its weaknesses are.

3. Knowing the advantages of the company

Transaction analysis can also be useful for finding out the company’s strengths.

Here, the company can find out where the best performance is.

4. Know the next steps in decision making

The next benefit is that this analysis can help to find out the next steps in decision-making.

For example, does the company need to reduce production costs, make investments, or add assets?

So, in making the decision above, the company can rely on the results of transaction analysis.

5. Become material for evaluation and performance appraisal

Transaction analysis is also helpful in evaluating and assessing the team’s performance behind it.

Later, with the results of this analysis, the company and the team can do better to improve their work activities.

Please note the evaluation material from this analysis will be valid and can be used as a follow-up report.

How to Perform Transaction Analysis in Crypto Assets

how to do transaction analysis

How does transaction analysis not complicated and tends to be simple?

Below are the elaboration points, namely as follows:

1. Understand the types of accounts/documents available

The first step must be to understand the types of accounts or documents available, for example, documents related to income, sales, production, returns, accounts receivable, and payables.

Next, all available documents are grouped by type.

Then, enter the document into the company’s accounting data for a period.

2. Completely collect all the necessary data

The second step is to collect all the necessary data in total.

The data must be valid, complete, and appropriate to avoid confusion.

The data includes all proof of transactions, financial income and expenses data, and the company’s work operations.

This data must also contain complete data related to the company’s debts or receivables.

In addition, it is also important to present data related to employee salaries and the management of non-investment assets from the company.

This data will then be collected ultimately and then checked and analyzed.

3. Perform transaction measurements

If the data is complete, the third step is to measure transactions.

In a transaction analysis, all valid data will be matched according to the financial plan, for example, at the beginning of the period.

Then, the data is measured for suitability with the company’s financial numbers before and after the transaction.

4. Set real data of income and expenses

Next, after transaction measurement, transaction analysis is continued by establishing real data on income and expenses.

In this process, original data related to the company’s financial income and expenses for some time must be obtained.

Furthermore, the data that has been measured and evaluated will go to the next step, namely reporting.

5. Create a report

Finally, after tracing the steps above, the next step is to make a report.

Please note in the steps of making this report, the validity of all existing data must be accounted for.

At this stage, it is mandatory to include all data elements received in a company’s period report.

Challenges in Performing Transaction Analysis in Crypto Assets

Even though the analysis of transactions in crypto can provide important information about security and transparency in the network, there are a number of challenges that can be faced when conducting transaction analysis.

The following are some of these challenges, including:

1. User anonymity

Many crypto networks are designed to provide users anonymity, making analyzing transactions more difficult.

Although the transaction address is generally visible, it is often difficult to identify the real owner of the address.

2. Rapid price fluctuations

Crypto prices can fluctuate quickly, and sudden price changes can make analyzing transactions more difficult.

If a crypto’s price fluctuates greatly quickly, it is difficult to determine the cause of the change simply by examining transactions.

3. Global transactions

The crypto network is global, which means transactions can be made from any country.

This can make transaction analysis more difficult because regulations and laws vary from country to country.

4. Limited data

Transaction data on crypto networks are often limited and only sometimes complete.

This can make transaction analysis less accurate and easier to perform.

5. New technology

Crypto networks are constantly evolving and using new and complex technologies, which can make transaction analysis more difficult.

If you understand blockchain technology well, it will be easier to understand how transactions are made, and data can be analyzed.

Even though there are challenges in analyzing cryptocurrency transactions, considering sufficient technical expertise and paying attention to blockchain technology developments can help overcome these challenges and obtain more accurate and helpful information for security and transparency in crypto networks.

Transaction Analysis Disclaimer

As a disclaimer, it is essential to remember that financial markets and crypto assets can be very volatile and carry a high level of risk.

Therefore, by analyzing each transaction, there is no guarantee of profit or protection against losses in investment.

This is because the value of crypto assets can fluctuate significantly, and past results do not guarantee future results.


The definition of transaction analysis is one of the stages in the accounting cycle, which summarizes various data reports in it.

Transaction analysis also collects data from various financial transactions, from income, operational costs, expenses, and purchasing assets to taxes.

Some of the advantages of transaction analysis are the detection of suspicious activity, helping to monitor portfolio performance, and adding market insight.

Meanwhile, the drawbacks lie in difficulty in identifying the account owner. Transaction data is only sometimes complete, and different transaction fees and challenges in analyzing complex transactions.

So, that was a complete discussion of transaction analysis, from understanding the benefits to how to do it.

You can also read other interesting articles, such as regression analysis at INDODAX Academy, and I hope this article is useful.

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