There are a few different reasons why the balance values seen in the Highest Balance report might not match your true holdings during the tax year or the balance seen on your Dashboard and in the Complete Tax Report.
#1 - Balance is calculated separately for each wallet/exchange
In the Highest Balance report, the total balance for each day during the tax year has been calculated for each wallet separately. This means that we are simply taking all incoming transactions - outgoing transactions in each unique wallet or exchange account. All transactions that are imported to the same wallet type on Coinpanda are considered in this calculation, including also Transfers, Deposits, and Withdrawals which are internal transfers.
This means that if you have made an internal transfer from Coinbase to Binance, but only imported the deposit transaction in your Binance wallet and marked this as Deposit, your Coinbase balance will not be correct because the withdrawal transaction is missing. The Dashboard and PDF report balance, however, does not consider internal transfers (Transfers, Deposits, Withdrawals) in the calculations since your total balance is not affected by transfers between your own exchange accounts or wallets. This is why the balance in your Highest Balance report might be slightly or even majorly different than the balance seen on the Dashboard and in the Complete Tax Report.
Read also: Internal transfers between your own wallets
#2 - The Highest Balance report ignores negative balances
Both the Dashboard and Complete Tax Report balance will adjust your balance if you are selling more coins than you actually own at the time of the transaction to avoid your balance going negative. This is done to improve the accuracy of the balance calculations since you cannot technically sell more coins than you actually own. In the Highest Balance report, on the other hand, the calculated balance is not adjusted for negative values.
As an example, if you have only imported your trade history from Binance and not your deposits and withdrawals, your balance will most likely be negative for the coins you deposited to Binance since Coinpanda does not have any information about these coins being sent to your account. This can result in your total balance being lower than it actually is, or even become negative if the negative amount exceeds the value of your other coins held on Binance.
How to make sure the Highest Balance report is accurate
The solution to making sure your Highest Balance report is accurate is actually quite simple: you need to import all transactions from all years of trading from all exchange accounts and wallets.
Here are a few tips to get you started if you think the balance is not accurate:
Check that you have added all wallets and exchange accounts you have ever used when buying, selling, trading, or even storing cryptocurrency.
Verify that all transactions have been imported into all your wallets on Coinpanda. You should also verify that the amount sent or received is accurate.
Verify that all tokens and cryptocurrencies have been identified correctly. If a token is identified as the wrong token, it can result in major errors in the balance calculation if the wrong price is used.
Make sure to import also all fiat deposits and withdrawals since these transactions are also considered in the balance calculations.