Important points
- Top choices for cryptocurrency accounting software often integrate with general business accounting software.
- Crypto accounting software can track cryptocurrency payments made to your business.
- Monthly and annual plans are available.
You know how you have to track your regular money so you know what's there during tax season? The same goes for cryptocurrencies. Regulators are closely monitoring virtual currency trading. This means that individuals and large businesses will need to track their crypto transactions and pay taxes accordingly.
Organizing and filing your tax information isn't usually considered fun. When it comes to cryptocurrencies, it's no small feat. Between constantly fluctuating prices, countless exchanges, and per-transaction fees, manually accounting for cryptocurrencies can be overwhelming.
Deploy tax software for cryptocurrencies. Using this type of software will reduce your tax liability on cryptocurrencies and make tax time easier.
Below we detail some of the main options.
best crypto accounting software
| company | Monthly fee | Exchange integration | Tax software integration |
|---|---|---|---|
| bit wave | Please contact us for pricing | Binance coinbase gemini kraken Learn more |
quickbooks Oracle Nesweet zero intact sage working day |
| encryption | Basic – $299/month Pro – $750 per month Enterprise – Contact us for pricing |
Binance coinbase gemini kraken Learn more |
Oracle Nesweet zero quickbooks |
| easy to read | $49 per month – for 200 transactions, $100 for every 2,500 transactions after the first transaction 1,000 Enterprise plan also available |
Binance coinbase gemini synthetics Learn more |
quickbooks Oracle Nesweet zero turbo tax tax slayer |
| attendant | Free up to 25 transactions Hobbyist – $79/year Trader – $199/year Pro – $299/year |
Binance coinbase gemini Learn more |
none |
| cryptoworth | Free up to 100 transactions Level 1 – $285 per month Level 2 – $555 per month Level 3 – $910 per month Enterprise – Contact us for pricing |
Binance gemini coinbase Deribit Learn more |
quickbooks oracle Netsite zero |
1. Bitwave: Best overall
Bitwave advantages and disadvantages
Strong Points
- Automatically sync your entire trading history every time you connect to a wallet or exchange
- Easily send large amounts of cryptocurrency payments to multiple addresses when paying bills or running payroll
Cons
- Pricing is unclear and you will need to arrange a demo if you want to use the software
Main features
Bitwave offers a complete suite of accounting, bookkeeping, and tax tracking solutions for virtually any cryptocurrency use case.
- Automatic tax reporting for crypto swap trades – when you trade one cryptocurrency for another, effectively selling the first cryptocurrency and buying the second
- Provides IRS-compliant reporting from imported transaction data
- Track your tax liability on profits earned from cryptocurrency loans
- Trusted as the go-to cryptocurrency tax solution by large organizations like OpenSea
Who should use it?
- institution: The company offers the Bitwave Institutional suite of enterprise tools and services for cryptocurrency custodians, exchanges, asset managers, and liquidity providers. Generate independent contractor forms for employees, track and report customer funds, and create separate financial statements for each subsidiary.
- crypto miner: For those who mine cryptocurrencies, Bitwave automatically tracks mining profits and tax liability, and also has special customization features for tasks such as amortizing certain costs.
- non-profit organization: Donations using virtual currency have become increasingly popular in recent years. Bitwave provides nonprofits with the tools they need to manage their cryptocurrency donations, including automated classification and valuation of donated tokens, NFTs, and other digital assets.
2. Cryptio: Perfect for businesses and institutions
Strong Points
- Provide technical setup and onboarding for new users
- Join Cryptio's community of bookkeepers, accountants, and audit advisors
- Complete on-chain data for 40+ chains with proprietary indexers
Cons
- Basic plans start at $299 per month
- Basic plan includes only 3,000 transactions and 5 financial data sources
- Not for small businesses or individuals
Main features
Cryptio is a modern cryptocurrency accounting and tax software with all the features you would expect, plus a few more:
- Supports custom rules to automatically classify transactions such as staking rewards and payroll expenditures.
- Allows importing an unlimited number of blockchain transactions, wallets, exchanges, and custodians
- Contains application programming interfaces (APIs) that can be used to program custom tax and accounting solutions on the Cryptio platform
Who should use it?
- crypto-native companies: Cryptio is trusted by DeFi platforms, Metaverse, NFT marketplaces such as Consensys, Uniswap, 1inch, etc.
- financial institution: Cryptio integrates with leading trading desks, crypto custodians, and DeFi applications, making it ideal for hedge funds, asset managers, and family offices.
- financial manager: Cryptio's automated bookkeeping process converts data from exchanges into traditional accounting reports. This prepares corporate accountants for audits and ensures compliance with regulations.
5. Cryptoworth: Best for DeFi traders
Strong Points
- There is a free version with unlimited exchange and wallet connections and up to 100 transactions
- Numerous crypto-native integrations including DeFi, GameFi, and NFTs
Cons
- The free version does not support integration with tax software such as Quickbooks or Xero.
Main features
Cryptoworth's tax and accounting services include basic features such as automated transaction reporting and tax preparation, but the service also includes the following additional features:
- Integration with OpenSea and Rarible of top NFT marketplaces for NFT accounting and tax calculations
- Integrations with over 100 decentralized finance (DeFi) protocols including Uniswap, Curve, Yearn, and more
- Support for tracking tax debt by staking on chains like Ethereum, Solana, Polygon, etc.
- Streamlined integration into the GameFi (game finance) ecosystem to track taxes from blockchain video games such as Axie Infinity
Who should use it?
- DeFi trader:Cryptoworth supports native integration with over 100 DeFi protocols, so if you are a DeFi trader, importing DeFi trades and trades is easy.
- crypto gamer: Cryptoworth is one of the few tax and accounting software solutions that offers native GameFi integration. Just search for GameFi tokens and if supported, import your data as easily as any other cryptocurrency.
Why use crypto accounting software?
You don't use a hammer to hit a screw, right? As grandpa used to say, there is a right tool for every job, and cryptocurrency accounting software is the right tool for businesses using cryptocurrencies.
Certainly, more affordable crypto tax software options exist. However, software aimed at the consumer market often misses the mark for business use.
If you have used consumer crypto tax services, you already know that some of these tools will never give you detailed expense reports. Most likely, they will spit out a tax report that can be sent to his IRS (but this will not be understood by anyone else). Grandpa was right again.
accounting
As the old business adage goes, you can never save to make a profit. The top line determines the ship's course. However, it is possible to increase your profits by understanding the numbers. Whether you use in-house accounting or outsource to a company, crypto accounting software gives you easy access to more data.
Want to know how much you spent on fees on a particular platform? Export your report. Want a breakdown of your crypto loan interest rates? Export your report. It is essential to know your tax identification number accurately. However, the additional investment is often worth it if you have access to data that can help improve your bottom line.
bookkeeping
How long does it take for your accounting staff to adapt to your company's crypto breakthrough? And how many bookkeepers understand how to categorize liquidity pool swaps? , this is new territory.
If your business has more than a few cryptocurrency transactions per year, payroll time (and potential errors) can quickly add up. Crypto accounting software makes everyday cryptocurrency trading easy. Many services also allow you to export to popular business accounting software such as Quickbooks, Oracle Netsuite, Quickbooks, and Xero.
pay with cryptocurrency
Legitimate business expenses are tax-deductible, but what if you pay with cryptocurrencies? Heck, even Newegg uses cryptocurrencies these days. A purchase of 1.5 ETH on the books makes no sense to anyone, especially his IRS. For tax and accounting purposes, purchases made with virtual currency funds must be converted to an equivalent dollar value at the time of expense.
Crypto accounting software does the heavy lifting here, tracking the cost basis and value in USD when making cryptocurrency payments. nice. Now, you probably won't go to jail. At least not for that reason.
Get paid in cryptocurrencies
Just like paying with cryptocurrencies, receiving cryptocurrencies as payment requires some accounting gymnastics. Crypto accounting software can convert 0.6 Bitcoin payments into USD value, making it compliant. Track your crypto assets just like any other business asset. When you finally convert your cryptocurrency to cash, you already have an accurate cost basis. No more guessing or praying.
Traditional tool connections
Crypto doesn't have to be that creepy, quiet guy that no one remembers at family gatherings. Business cryptocurrency transactions can (but cannot) be mixed with other business transactions.
Encrypted accounting software connects to popular accounting software and joins the big family picture. Both Bitwave and Ledgible can communicate with Oracle Netsuite and Quickbooks. Cryptio is natively integrated with all Oracle Netsuite, Quickbooks, and Xero. I understand. We're all part of the family now.
Summary
Whether you're just starting your accounting and tax business or have large corporate clients, you'll want to use cryptographic accounting software to track your clients' finances and tax obligations.
FAQ
Cryptocurrency accounting software is used to analyze cryptocurrency transactions, track losses and profits, and determine the amount of tax due on cryptocurrency transactions throughout the year.
Crypto accounting software integrates with large exchanges and crypto wallets to automatically categorize and organize transactions. This way you don't have to manually track every transaction you make.
The software also automatically generates tax reports that can be submitted to the IRS.
Yes, both Acointing and Cryptoworth have free versions for up to 25 and 100 transactions respectively.
QuickBooks does not offer crypto accounting as part of its product. Alternatively, you can perform crypto accounting using crypto accounting software such as Bitwave, Ledgible, Cryptio, and Cryptoworth and export the results to QuickBooks.
Contributor
George is a technology writer with an interest in Web3 startups and communities. In the dynamic world of cryptocurrencies, he stays on top of daily headlines, in-depth research, and industry commentary.
contributing editor
Gary Angrebrandt is a US-based editor, copywriter, and communications consultant with business and international news experience. Beyond the United States, he works from Seoul and Beijing and continues to work with professionals based around the world.
