# Local-first crypto accounting

> Crypto accounting means turning a messy stream of trades, transfers and on-chain events into a coherent ledger you can report from. rotki does that work locally: it lives on your computer, reads your accounts, and keeps the resulting books in an encrypted database that never has to leave your machine.

Crypto accounting means turning a messy stream of trades, transfers and on-chain events into a coherent ledger you can report from. rotki does that work locally: it lives on your computer, reads your accounts, and keeps the resulting books in an encrypted database that never has to leave your machine.

## Building an accurate ledger

rotki pulls balances and transactions from the exchanges and wallets you add and decodes on-chain activity into readable, categorised events. Where automation needs a hand, for example an unusual transaction or an off-exchange trade, you can edit events and add manual entries so the ledger reflects reality.

## Accounting you control

You choose the cost-basis method and accounting period, and rotki applies them on your machine to calculate profit and loss. Because it is local and open source, you can see how each figure is derived rather than relying on calculations you cannot inspect.

## Who it is for

rotki gives you the accounting foundation and exportable reports. It is not multi-user bookkeeping software and it is not tax advice. For an individual or a small operation that wants accurate, private, auditable crypto books, doing the accounting locally is a good fit.