Moreover, there are many of these platforms available today including the SoftLedger, Token tax, and the ZenLedger. In this article, we will be discussing these 3 crypto accounting platforms that allow you to track trades. We will also look at their key features as well as their pricing.
Trade Tracking Platforms
You need to assume that your exchange doesn’t provide tax documents in most instances to maintain an accurate tax record. This is because they tend to give inaccurate information to the IRS most of the time. Hence, it’s safer to adopt tracking software or better still track your trades by yourself since you have the final responsibility for accurate tax reporting.
However, the 3 platforms you can use to ensure easy and accurate tracking of your crypto trades are listed below.
SoftLedger
This is a strong crypto accounting tool with peculiar crypto-specific features that simplify the complexity of the entire process. It’s among the best platforms for easy financial management and crypto business accounting. SoftLedger is also an effective tool for the perfect tracking of trading profits and losses. With it, fulfilling the crypto tax requirements is made easy and simple.
Key Features
- Collects profit and loss data needed for tax reporting purposes efficiently.
- Automatically tracks unrealized and realized profits and losses, live market rates, etc. Hence, allow you access to a real-time view of your data.
- Tracks crypto transactions easily on a large scale and supports more than one wallet and exchange.
Pricing
SoftLedger prices are not provided directly and require you to contact the vendor. But some reliable resources state that it starts at $749 monthly which is extremely expensive for typical traders.
ZenLedger
This is a custom-built tool for crypto businesses and crypto tax calculations. It also helps in bookkeeping and accounting activities to calculate profits, track crypto transactions, and avoid overpaying taxes. It’s easy to set up and use; you can simply carry out tax and accounting calculations in three simple steps. They include importing transactions, reviewing transactions, and downloading tax forms.
Key Features
- ZenLedger is among the most user-friendly crypto accounting and tax software. It supports over 400 exchanges, fiat currencies, wallets, blockchains, and coin types more than its counterparts.
- It’s the most secure and uses encryption via two-factor authentication.
- It also provides outstanding services throughout the week using phone, chat, or email.
Pricing
- ZenLedger offers a starter plan at $49 per year, a Premium plan at $149 per year, and an Executive plan at $399 per year. All are much more reasonable compared to SoftLedger.
TokenTax
This is the recommended crypto accounting platform for newbies nervous about getting their tax right. It’s also a custom-built software that helps in basic bookkeeping and accounting activities. It automates the entire crypto taxation process and makes it simple. With TokenTax, you can connect to exchanges, track your crypto transactions, profits as well, and file tax returns. It helps you to calculate and pay international taxes and offers quality customer support services with an expert ever ready to assist you.
Key Features
- TokenTax picks transaction data automatically, fills Form 8949, and also calculates capital gains.
- It’s accompanied by a Tax Harvesting Dashboard to capture data of unrealized losses and gains.
- It’s compatible with all exchanges and imports transaction data automatically.
- TokenTax has a remarkable module that makes your crypto taxation and accounting process very easy. They include Tax professional Suite, Margin Trading, and Crypto Tax Reports.
Pricing
The yearly basic plan starts at $65 per year, the Premium plan at $199, and the Pro plan is $799. The basic plan is a reasonable cost, but it doesn’t provide much value.
Conclusion
The various crypto accounting platforms have numerous unique features. They are practically not equal when it comes to functionality. It’s not a bad idea to go for a platform that best suits your purpose. Good software should let you upload your crypto data easily and link your wallets together. This will make it easier for you to record transactions.
However, it’s important to choose a platform that will help you sort your crypto transactions into taxable and non-taxable activities.
