Whether you’re a crypto enthusiast new to the market or an established investor, there are various options for cryptocurrency accounting solutions. So, if you’re wondering how to best avoid tax liability and exposure to more risk in the form of potential fines or penalties this quick guide should help point you in the right direction.
We’ll take a look at 4 companies that offer cryptocurrency accounting solutions for businesses and individuals.
A popular cryptocurrency-related software platform, Ledgible offers tax and accounting solutions for digital assets. The company’s software is designed to be easy to use, powerful, and interoperable with existing tax software. In addition, Ledgible provides tools for users to track their digital assets over time.
The Ledgible platform comprises a decentralized network of financial reporting tools that can track millions of transactions per day. As a result, blockchain industry companies are able to keep track of their assets with ease. The company also offers data import/export with major accounting packages.
As a result, it’s an excellent choice for businesses that have cryptocurrency on their balance sheet.
If you are looking for a cloud-based software for cryptocurrency accounting, consider SoftLedger. Founded in 2016, SoftLedger integrates with major cryptocurrency exchanges to help you keep track of your cryptocurrency assets and taxes. Although it is not a cryptocurrency exchange itself, it does automate the process of entering relevant tax information, which can be very useful for businesses dealing with cryptocurrencies.
For companies wishing to automate their crypto accounting and bookkeeping tasks, Cryptio is an ideal solution. The company offers 24 hour customer support, dedicated customer success teams, and community events for CFOs and accountants. The company’s platform converts digital asset data into traditional bookkeeping data. The Cryptio system integrates with crypto wallets, exchanges, and custody solutions to simplify the financial reporting process.
Along with being a largest cryptocurrency exchange Coinbase offers a tax harvesting dashboard that shows you unrealized gains and losses. Its Margin Trading module, Crypto Tax Reports, and Tax Professional Suite modules support all exchanges and automatically import transaction data. Using the Coinbase platform can be a hassle-free solution, since it automatically imports transaction data from every exchange.
We’ve mentioned time and again that any cryptocurrency investment plan needs to be backed by detailed research. So, it follows that investors need to be savvy when it comes to reporting losses and gains in order to minimize their exposure and maximize profits.
Investing in traditional assets can pose complexities that average people may find difficult to understand. Those complexities are often exacerbated by the novelty and volatility of the crypto market.