The cryptocurrency market is giving rise to different kinds of solutions that are designed to meet the needs of crypto investors. Today, there are dozens of solutions from exchanges to accounting software and wallets. The greatest aspect of the growth of cryptocurrency is that it has given rise to new opportunities for every stakeholder from marketers to traders and miners. Today, we have bitcoin ATMs springing up in major cities across the world, with companies like SatoshiPoint ensuring that more people have access to bitcoin.
There are still so many regulations imposed on cryptocurrency, so it has been quite difficult for users to organise their digital assets and taxes well. Different countries are still maintaining different approaches to cryptocurrency, so that also plays a major role in the entire experience of trading them. In terms of the accounting software, the technology used varies and their capabilities will be different. There will also be some degree of limitation from one accounting solution to the other.
In this article, we are going to be looking at the top 5 cryptocurrency accounting solutions that every crypto investor needs to organize their taxes as well as other accounting needs.
Bitcoin Taxes
This is a capital gains and income service. It is designed for everyday cryptocurrency users, but there is also a version for accountants and firms. The software is fully automated, calculating taxes by importing the user’s information on trades and income. Bitcoin Taxes has been in operation since 2014, and supports most major flat currencies and jurisdictions. The software also supports most of the major exchanges. One of the best features of the software is that it allows users to compare one tax methodology against another. Bitcoin Taxes supports all cryptocurrencies.
CryptoTrader.tax
Cryptotrader.tax offers traders a simple accounting solution where traders can have their tax completed in three simple steps. Users import their trades, add their income from other available sources, and download the tax report. Cryptotrader.tax allows you to enter an unlimited amount of traders and view their tax report. Users are required to make a payment for downloading or exporting the report. The payment covers a whole year of revisions and reports. The software supports some of the major exchanges including Coinbase, GDAX, Binance, Bittrex, and Poloniex.
CryptoTaxPrep
CryptoTaxPrep is a tailored accounting solution for individuals who trade cryptocurrencies. Unlike many tax solutions that require the user to input their data and export their tax reports, CryptoTaxPrep involves a team of CPA’s that engage in the entire process for users. There is a package for every kind of cryptocurrency user. The basic package is for traders who use different platforms and carry out complex transactions. However, it is not the cheapest cryptocurrency accounting software around, but it is an effective accounting solution. This software is best for traders who deal with large amounts who want CPAs organizing their taxes.
Zenledger
Impressive accounting software for crypto investors is Zenledger, software that enables users to import their trade history, auto-fill tax forms, calculate their taxes, and many other processes. The software was established in 2017, which means it has not been around as long as some of its competitors like BitcoinTaxes that have been around since 2014. As of now, Zenledger isn’t fully integrated with all the major exchanges. However, they are working on integrating reports from DHAX, Coinbase, Bittrex, Kucoin, Gemini, Poloniex, and many more.
SoftLedger
SoftLedger is cloud-based accounting software designed for small to mid-sized businesses. The company has been in operation since 2016, and one of its major services is to provide software solutions that can help calculate crypto taxes. Softledger is fully integrated with major exchanges. The software allows users to view cost basis and unrealised gains and losses in real-time. One of the best features of this software is that it allows users to get reporting outside tax, where users can analyse their financial reports for their company to help them make better business decisions. Softledger is an all-round accounting solution.