Cryptocurrency Accounting Software Guide

Accounting Software
Whether you consider it “real” money or not, the fact of the matter is that cryptocurrencies are increasingly being used for real-world purchases. Currencies like Bitcoin and Ethereum are becoming more and more acceptable for real-world transactions, and so are increasingly becoming a legitimate factor in personal financial management. Therefore, whether you are an accountant or an individual looking to do your own bookkeeping, understanding how to use cryptocurrency accounting software is almost certainly going to be relevant to your current or future finances. Because of cryptocurrency’s growing popularity, many accounting software is making adjustments to accommodate for cryptocurrency. However, since cryptocurrency is so different (and complicated) several accounting software services are popping up specifically for the tracking and management of crypto-accounting. Below is a quick guide to four of the most popular crypto-accounting software programs currently on the market.

Blox

Blox is an amazing software for those who have large numbers of crypto-assets. If you are only an occasional user of digital currencies, however, this software might not be the best choice for you. Blox offers real-time presentation of asset prices and value, which helps to keep track of a highly volatile digital market. It comes with an excellent support system, which makes it incredibly user-friendly for professional accountants and individuals alike. It offers notably tight security to ensure that your accounting information is secure at all times, which is especially comforting if you choose to use Blox’s “share” function. Perhaps the most unique feature of this software, Blox allows you to give other users permission to access your workspace so that you can share your bookkeeping with your accountant, partner, client, or anyone else who needs consistent access to its information.

Bitcoin Taxes

bookkeeping  Bitcoin Taxes is accounting software that connects to your cryptocurrency wallet (or other platforms), and does your bookkeeping live. After every transaction, the program automatically calculates your gains, losses, and subsequent taxes. This can be a problem for more advanced cryptocurrency users, as the program is only compatible with certain cryptocurrency wallets or platforms. However, while the program is relatively limited in terms of cryptocurrency wallets, it’s compatible with almost every type of digital currency you can think of. It’s also one of the oldest crypto-accounting softwares out there, which means it’s had more time to adjust for common problems or pitfalls that other softwares are only just beginning to handle. This software also supports a wide variety of exchanges, calculating transactions between multiple digital currencies, the same digital currency, and between cryptocurrencies and real currencies (called “fiat” currencies in the digital currency world). Due to its age, the software is incredibly easy to use for professionals and individuals alike, particularly since it enables the user to compare different tax methodologies against one another.

CryptoTrader.tax

 The biggest pitfall of this software is that it only supports six different exchanges. However, for someone whose use of cryptocurrencies is relatively simple or routine, this software makes what can be quite a complex accounting challenge incredibly simple. The software automatically compiles tax reports – all you need to do is enter your information. Though it only supports six transaction types, traders can input an unlimited amount of transactions, and can view the entire report for free before purchasing it. It’s also very easy for accountants and clients to use together, streamlining the job for tax professionals. You also get unlimited revisions throughout the tax year with this software, so it doesn’t have to be perfect the first time around.

ZenLedger

 ZenLedger is definitely one of the most expensive crypto-accounting software out there, but it has such a wide range of functions that it’s arguably worth the money. It comes with some unique time-saving features as well, including the ability to input trades, calculate taxes, and autofill documents. Part of the hefty price is its amazing support team, so is definitely worth considering for newcomers to crypto-accounting. Many crypto-accounting programs are specifically designed for bookkeeping in the US, but ZenLedger is international, supporting crypto-accounting across multiple nations. As such, it doesn’t just handle cryptocurrency transactions. It can also handle transactions in USD, EUR, GBP, and JPY.

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