Key Takeaways
- Top crypto accounting software choices often integrate with popular business accounting software.
- Crypto accounting software can track crypto payments made to your business.
- Monthly and annual plans are available.
You know how you have to keep track of your regular money so you know what’s what during tax time? The same goes for crypto. Regulators keep a close eye on cryptocurrency trades. That means individuals and large companies need to track their crypto transactions and file their taxes accordingly.
Organizing and filing tax information isn’t usually considered fun. When it comes to crypto, it’s definitely no walk in the park. Between the ever-fluctuating prices, countless exchanges, and fees for every transaction, trying to do crypto accounting manually can be a drag.
Enter tax software for crypto. This type of software can ease the pain of doing taxes on crypto, and let you breathe easy come tax time.
We’ll give you the TL;DR on a few of the top options below.
- Bitwave: Best Overall
- Ledgible: Best For Tax Professionals
- Cryptio: Best For Companies and Institutions
- Accointing: Best Affordable Accounting Software
- Cryptoworth: Best For DeFi Traders
| Company | Monthly Price | Exchange Integrations | Tax Software Integrations |
|---|---|---|---|
| Bitwave | Contact for pricing | Binance Coinbase Gemini Kraken + more | Quickbooks Oracle Netsuite Xero Sage Intacct Workday |
| Ledgible | $49/mo – for 200 transactions, and $100 for each set of 2,500 transactions after the first 1,000 Enterprise plan also available | Binance Coinbase Gemini Synthetix + more | Quickbooks Oracle Netsuite Xero TurboTax TaxSlayer |
| Cryptio | Basic – $299/month Pro – $750/month Enterprise – contact for pricing | Binance Coinbase Gemini Kraken + more | Quickbooks Oracle Netsuite Xero |
| Accointing | Free up to 25 transactions Hobbyist – $79/year Trader – $199/year Pro – $299/year | Binance Coinbase Gemini + more | None |
| Cryptoworth | Free up to 100 transactions Tier 1 – $285/month Tier 2 – $555/month Tier 3 – $910/month Enterprise – contact for pricing | Binance Gemini Coinbase Deribit + more | Quickbooks Oracle Netsuite Xero |
1. Bitwave: Best Overall
Pros And Cons Of Bitwave
Key Features
Bitwave provides a full suite of accounting, bookkeeping, and tax tracking solutions for practically any crypto use case.
- Automatic tax reports for cryptocurrency swap transactions — which is when you trade one cryptocurrency for another, effectively selling the first one and purchasing the second one
- Provides IRS-compliant reports from your imported transaction data
- Tracks tax liabilities on profits earned from crypto lending
- Trusted as the go-to crypto tax solution by large organizations like OpenSea
Who Should Use It?
- Institutions: The company offers a Bitwave Institutional suite of enterprise tools and services for crypto custodians, exchanges, wealth managers, and liquidity providers. You can generate independent contractor forms for employees, track and report on client funds, and produce financial statements separated by subsidiary.
- Crypto Miners: For those who mine crypto, Bitwave automatically tracks mining profits and tax liabilities, and also has special customization features for tasks such as writing off certain costs.
- Nonprofits: Crypto donations have grown more popular in recent years. Bitwave provides nonprofits with the tools they need to manage their crypto donations, including automatic categorization and appraisal of donated tokens, NFTs, and other digital assets.
2. Ledgible: Best for Tax Professionals
Key Features
Ledgible is a crypto accounting and tax software that provides services for individuals, as well as a complete suite of client management tools for tax professionals and accountants.
- Comes with tax advisory and planning dashboards that help you plan out your future spending and tax liabilities
- Provides services for individuals, but it was built with CPAs, tax professionals, and accountants in mind
- Provides client and team management portals that allow tax professionals to work on behalf of clients
- Accounts not only for gains and losses, but also for fees charged when making transactions
Who Should Use It?
Ledgible provides three tax products. Each serves a different market niche when it comes to tax preparation:
- Ledgible Crypto Tax: Ledgible’s tool for consumers looking to file their own taxes
- Ledgible Crypto Tax Pro: Ledgible’s solution for accountants and CPAs which integrates with popular software like UltraTax CS and GoSystem Tax RS
- Enterprise Accounting: Made for large businesses that require custom features such as user accounts, special exchange connections, and large transaction volumes
3. Cryptio: Best For Companies and Institutions
Key Features
Cryptio is a modern crypto accounting and tax software that comes with all the features you’d expect and then some:
- Supports custom rules that automatically categorize transactions such as staking rewards and payroll expenses.
- Allows the importing of an unlimited number of blockchain transactions, wallets, exchanges, and custodians
- Once your data is imported, Cryptio can provide recommendations on what trades to make in order to maximize your tax refund
- Includes an application programming interface (API) that can be used to program custom tax and accounting solutions on top of the Cryptio platform
Who Should Use It?
- Crypto Native Companies: Cryptio is trusted by DeFi platforms, metaverses, and NFT marketplaces such as Aave, Consensys, and The Sandbox.
- Financial Institutions: Cryptio’s integrations with major trading desks, crypto custodians, and DeFi applications make it a good fit for hedge funds, asset managers, and family offices.
- Treasury Managers: Cryptio’s automatic bookkeeping process converts data from exchanges into traditional accounting reports. This prepares enterprise accountants for audits and ensures compliance with regulations.
4. Accointing: Best Affordable Accounting Software
Key Features
Accointing is an affordable crypto tax and accounting software that gives the big players a run for their money. Some standout features include:
- A mobile app available on the App Store and Google Play
- Tax loss harvesting features for both cryptocurrencies and NFTs that help you maximize your tax return
- Daily balance report feature allows you to retroactively view all of your wallet and exchange balances on a day-by-day basis
- Market “sentiment” tool uses AI to analyze how traders are feeling about the crypto markets in real time
Who Should Use It?
- Accountants On A Budget: While many other tools start at $300+ per month, Accointing’s top tier is $299 per year. That makes it a very appealing choice, considering that for all but the most specific use-cases Accointing’s services are just as good as the big names.
- Traders Of Less Popular Cryptocurrencies: Accointing tracks prices for over 20,000 cryptocurrencies. If you’ve traded some more obscure tokens and need to generate a tax report for them, there’s a good chance Accointing will be able to help.
- Accountants On The Go: Accointing is one of the few crypto tax and accounting programs that provide a mobile app for making accounting adjustments on the go.
5. Cryptoworth: Best For DeFi Traders
Key Features
Cryptoworth’s tax and accounting services include the basics like automatic transaction reports and tax prep, but the service also includes the following extra features:
- Integrations with top NFT marketplaces OpenSea and Rarible for NFT accounting and tax calculations
- Integrations with over 100 decentralized finance (DeFi) protocols including Uniswap, Curve, Yearn, and others
- Support for tracking tax liabilities from staking on chains such as Ethereum, Solana, and Polygon
- Streamlined integrations to GameFi (Gaming Finance) ecosystems for tracking taxes from blockchain video games like Axie Infinity
Who Should Use It?
- DeFi Traders: Cryptoworth supports native integrations with over 100 DeFi protocols, so importing your DeFi trades and transactions is a breeze if you’re a DeFi trader.
- Crypto Gamers: Cryptoworth is among the few tax and accounting software solutions that offer native GameFi integration. Simply search for your GameFi token and, if it’s supported, you will be able to import your data as easily as for any other cryptocurrency.
Why Use Crypto Accounting Software?
You wouldn’t use a hammer to pound screws, right? There’s a proper tool for every job, as Grandpappy used to say, and crypto accounting software is the right tool for businesses that use crypto.
Sure, there are more affordable crypto tax software options out there. But consumer-market software often misses the mark when it comes to business use.
If you’ve ever used a consumer crypto tax service, you already know you’ll never get a detailed expense report out of some of these tools. For the most part, they spit out tax reports you can send to the IRS (but which nobody else understands). Grandpappy was right again.
Accounting
As the old business saying goes, you’ll never save your way into a profit. The top line sets the course of the ship. But you can increase profits by understanding the numbers. Whether you use in-house accounting or outsource to a firm, crypto accounting software gives you easy access to more data.
Need to know how much you spent on fees on a given platform? Export a report. Want a breakdown of your crypto loan interest? Export a report. Getting the tax numbers right is essential. But access to data that can help increase the bottom line is often worth the added investment.
Bookkeeping
How long would it take your bookkeeping staff to keep up with your business’s crypto escapades? And how many bookkeepers understand how to categorize a liquidity pool swap? This is new territory, folks.
If your business has more than a few crypto transactions per year, the payroll hours (and potential mistakes) can add up quickly. Crypto accounting software makes everyday crypto transactions painless. Many services also let you export to popular business accounting software like Quickbooks, Oracle Netsuite, or Xero.
Paying With Crypto
Legitimate business expenses are tax-deductible, but what if you pay with crypto? Heck, even Newegg takes crypto these days. A 1.5 ETH purchase on your books won’t make sense to anyone–least of all, the IRS. For tax and accounting purposes, crypto-funded purchases have to be converted to the equivalent value in dollars at the time of the expense.
Crypto accounting software does the heavy lifting here, tracking your cost basis and the value in USD when you make the crypto payment. Cool. Now, you probably won’t go to jail. At least not for that.
Getting Paid In Crypto
Just like paying in crypto, receiving crypto as payment requires some accounting gymnastics. Your crypto accounting software can convert a 0.6 Bitcoin payment to its value in USD, so you’re compliant. It’ll track the crypto asset as well, just like other business property. If you eventually convert your crypto to cash, you’ll already have an accurate cost basis. No more guessing and praying.
Connecting Traditional Tools
Crypto doesn’t have to be like the weird mumbly guy that nobody remembers at the family reunion. Your business crypto transactions can mingle (but not co-mingle) with your other business transactions.
Crypto accounting software connects to popular accounting software, joining the big family picture. Cryptio can talk to Xero. Bitwave and Ledgible can both talk to Oracle Netsuite and Quickbooks. You get the idea. Everyone’s part of the family now.
To Sum It Up
Whether your accounting or tax business is just starting out or you have large enterprise clients, you’ll want to use crypto accounting software to keep track of your clients’ finances and tax liabilities.
Frequently Asked Questions
Cryptocurrency accounting software is used to analyze crypto transactions, track losses and gains, and determine how much you owe in taxes from your crypto trades throughout the year.
Crypto accounting software integrates with large exchanges and crypto wallets in order to automatically sort and organize your transactions. This way you don’t have to manually track down every trade you made.
This software also automatically generates tax reports that can be submitted to the IRS.
Yes, Accointing and Cryptoworth both have free versions up to 25 transactions and 100 transactions, respectively.
QuickBooks does not provide crypto accounting as a part of its product. Instead, you can use crypto accounting software such as Bitwave, Ledgible, Cryptio, and Cryptoworth to do your crypto accounting and export the results to QuickBooks.
George Hristov
Contributor
George is a tech writer interested in web3 startups and communities. In the dynamic world of crypto, he stays plugged into the day-to-day headlines, deep dives, and industry commentary.
Gary Anglebrandt
Contributing Editor
Gary Anglebrandt is a US-based editor, copywriter, and communications consultant with a background in business and international news. Beyond the US, he has worked from Seoul and Beijing, and continues to work with professionals based around the globe.
Author: Stephen Perez
Last Updated: 1700151722
Views: 966
Rating: 4.4 / 5 (119 voted)
Reviews: 81% of readers found this page helpful
Name: Stephen Perez
Birthday: 2019-11-28
Address: 278 Ashley Courts, Leachfurt, SC 17859
Phone: +4365222886917637
Job: Article Writer
Hobby: Surfing, Wildlife Photography, Playing Guitar, Meditation, Orienteering, Baking, Reading
Introduction: My name is Stephen Perez, I am a rich, radiant, treasured, Determined, resolved, sincere, esteemed person who loves writing and wants to share my knowledge and understanding with you.