Skip to main content
Breezing automatically detects transfers that occur between two wallets you own (Internal Transfers), as well as trades executed on decentralized or centralized exchanges (Trades). Since these events just move value between your own assets rather than realizing external revenue or expense, handling them in your accounting software requires a specific approach.
This is the simplest way to handle internals. When you use Auto Apply, Breezing syncs only one side of the transaction (either the outbound or the inbound) to your accounting system. This prevents your ledger from double-counting the movement and negating itself out.
  1. On your Dashboard, open the Filter menu.
  2. Select Direction > Internal (or Trade).
  3. Select the internal transactions you want to process using the bulk checkboxes.
  4. Click Manage > Auto Apply Accounts.
  5. Select your Balance Sheet basis (e.g., Token or Wallet, depending on how you set up your balance sheet mapping in Breezing).
  6. Breezing will automatically categorize the transaction to match the token or wallet it moved to, and sync only the appropriate side to Xero/QBO.

​
Method 2: Using a Control (Clearing) Account

Some accountants prefer to use a “Clearing Account” to track the flow of funds manually. If you use this method, Breezing will sync both sides of the transaction (the outbound and the inbound) directly to your clearing account, leaving it up to you to reconcile the balance.
  1. Ensure you have created a “Crypto Clearing Account” or “Internal Swap Clearing Account” in your Chart of Accounts (in Xero/QBO).
  2. Go to Settings > Chart of Accounts in Breezing and hit Get Accounts to fetch the new clearing account.
  3. On your Dashboard, filter for your Internals or Trades.
  4. Bulk-select the transactions.
  5. Click Edit to bulk-edit the account mapping.
  6. Select your Crypto Clearing Account from the dropdown and hit Update.
  7. Breezing will now sync both the inflow and outflow of these events to that clearing account. You will need to manually review this account at month-end to clear out any opening or ending balances.

​
Manually Matching Internal Transfers

While Breezing automatically detects and matches most internal transfers by scanning the blockchain data, transfers involving Centralized Exchanges (where the “From” and “To” wallet addresses are masked) may occasionally slip through. When this happens, you must manually group them so Breezing knows to transfer the cost basis properly without triggering a taxable capital gain or loss.
If the transactions are on the same page:
  1. Check the boxes next to the outbound transaction (e.g., leaving a wallet) and the corresponding inbound transaction (e.g., arriving at an exchange).
  2. Click the Manage dropdown at the top.
  3. Select Create Internal Group. Breezing will instantly bind them together with a unique internal ID, signaling that cost basis should transfer smoothly between them.
If the transactions are on different pages:
  1. Find the first transaction (e.g., the outbound).
  2. Check the box, hit Manage, and select Create Internal Group.
  3. Look at the transaction details and take note of the newly assigned Internal ID (e.g., 1827).
  4. Navigate to the next page and find the corresponding inbound transaction.
  5. Click into the transaction details.
  6. Check the Internal toggle.
  7. Manually type the ID (1827) into the Internal ID field to bind them together across pages!
All right, guys. So, in this video, I’m going to show you how to do internals and trades predominantly kind of what’s going to happen. So, I’m just going to go over here. I’m going to go filter. I’m going to filter for internals. I’m going to filter it. And I can see here’s a bunch of internals that have been already pre-selected. They have this ID attached to them. So, these two, for example, are an internal for my off wallet, my treasury wallet. I know that based off this ID, 3933. If I click in here, I also see that same ID. Now, on internals, you got kind of two options. Uh, you could either come over here, you can go to settings and you could use a control account. I’ll show you that in a second. Or you can use just Breezing’s auto feature account, which I’ll show what that looks like. So, if you want to autolel the internals, you can kind of select these two right here. You can click here, auto apply accounts, and you can select the base that you’re on. So, usually you have a balance sheet, as mentioned earlier, token base, wallet based, or wallet token base. Right now, I kind of have a token base setting. So, I’m going to hit token base, and that automatically labels this as token. Keep in mind too also when you set up your balance sheet, let us know initially what it is. You can set it in the settings. Just go to token base and that kind of lets us know automatically kind of what you what the standard should be. So there you go. These two are selected on on wallet based. If you had token base, sorry on token base. If you have wallet base, you just do it on the wallet based segment. Uh the same thing goes for trades. I kind of show you what a trade is. I’m going to click direction filter for trades. Filter that out right here. So here I got a bunch of trades again. Here I’m going to do click on that. Click here auto apply accounts and I’ll click token. And there you go. It’ll select a token. I can do it for all three as well. So I can just like quickly auto apply accounts token based. Okay. So that’s on the auto apply feature. Now you can do a control account. This is also quite common as well. So for example, if I wanted to I created a control account in my chart of accounts. So here is like a a clearing account. I was going to update my chart of accounts. So get accounts update the chart of accounts. Here you’ll see there’s a internal crypto clearing account and a swap crypto clearing account. And so if I just go back to my table here, I can go back to my settings, enable use control account, hit update, go back to my dashboard, and here I got a bunch of accounts. So here I can now just set these to my control account. So I can go ahead and just edit those ones in bulk. Select my swap crypto clearing account, which is my control account, and update. Now what would happen here is basically these three are going to get updated to my I should they should have got updated. I don’t know what happened there but basically these three will uh sync all the two transactions to my swap crypto cleaner account and there is kind of like where I’ll just kind of have to review that account every kind of period to clear up any opening balances or ending balances there. Uh the other way if you use a if you use just the auto apply feature what it’s doing in this mechanism is it’s basically saying um only sync one side of the transaction uh and not the other one and that kind of helps basically uh ensure that there’s an actual booking there. It’s kind of but either or works. The same thing worked for internals like same thing. You can go ahead and kind of select swap clearing accounts here. So edit I have an internal swap clearing account. Update all of them. And it’s kind of updating it automatically into that cryp internal clear room account. And again this one’s syncing both sides of transaction. So syncing the inbound and the outbound into a crypto clearing account. And instead of syncing just one side, if you use auto apply feature and you untoggle crypto clearing account, it’s only going to sync one side of the transaction and not the other one. And the reason being is if you sync both of them, uh it’ll kind of negate each other. So those are the options to use on using a crypto clearing account and breezing and kind of kind of the differentiation between the internals and trades. Cool. I’m ready for any questions.