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Software and Apps for Crypto Taxes and Accounting
Sorting out your taxes can be a headache at the best of times, but when it comes to crypto things can be even more confusing.
However, it’s crucial that you keep track of all your cryptocurrency transactions, whether it be trading, spending, investing, mining, DeFi (Decentralised Finance) or NFT (Non-Fungible Token) purchases and sales, as tax authorities around the world are increasingly scrutinizing people’s crypto affairs.
In the UK, for example, there are number of taxes you need to consider, including Income Tax, Inheritance Tax (IHT) and Capital Gains Tax (CGT).
Keeping track of every Bitcoin or altcoin transaction you make on an exchange, especially if you’re a high frequency trader, is almost impossible for the average person to do.
Which is why an increasing number of crypto accounting solutions are coming to the market to help people keep on top of their legal requirements when it comes to tax.
Here we take a look at some of the apps available for crypto taxes to help you report accurately and add your Bitcoin and crypto trading activities to your end-of-year self-assessment form.
1. Accointing
Accointing bills itself as ‘the easiest way to file your crypto taxes in the UK’, but has customers in many different countries.
Here are some of the features of Accointing which makes it a good choice for crypto newbies or professional traders alike:
- HMRC compliant. Accointing pays close attention to HMRC rules when it comes to completing your crypto tax return – ideal for UK users.
- Detailed reports. The software produces full reports with a breakdown of every crypto transaction you make and real time adjustments to maximise tax savings.
- Tax calculations. Capital Gains Tax and Income Tax are all handled for you.
Accointing also offers a crypto tax mobile app, and supports more than 300 crypto exchanges and wallets around the world.
The super simple interface makes adding exchanges and wallets straight forward, with handy quick links to your current portfolio and profits.
This is our number one choice for crypto accounting software based on features and ease of use.
2. Koinly
Koinly gets consistently good reviews across the web and comes highly recommended for a number of reasons, including:
- Exchange support. The tax software currently supports more than 300 cryptocurrency exchanges, with more being added all the time.
- Easy to use. Koinly’s minimalist interface makes it extremely easy for users to get set up and integrated.
- Global support. The software supports tax standards across a wide range of locations, including the UK, US and Canada.
Koinly offers a range of additional features to help you manage your crypto assets and taxes, including the actual ROI (Return on Investment) of your portfolio together with a live summary of the tax due.
If you mine cryptocurrencies or stake / lend tokens, the software gives you an instant overview of your income, together with profit/loss reports.
3. CryptoTrader
This is another top rated crypto tax app that has the added advantage of being an official TurboTax partner.
Like the crypto tax software packages above, CryptoTrader supports hundreds of exchanges and wallets.
Some of the key features of CryptoTrader are:
- Import transaction history. Like the other packages, CryptoTrader makes it a breeze to link your crypto exchange or wallet and import transactions.
- Easy form filing. Download completed tax forms ready to send to your accountant or integrate with a tax filing software package.
- International filing. Designate any currency you choose for your reports.
CryptoTrader allows you to preview your tax situation for free before committing to a subscription, ideal if you’re unsure which package is right for you.
The website also features a useful series of guides to help you navigate the complex world of crypto taxes.
4. TokenTax
TokenTax offers a full service crypto tax calculator and package for all your cryptocurrency and DeFi accounting needs.
Integration into your exchanges and wallets is automated, and the team promises that every crypto exchange is supported.
It also offers:
- Capital Gains Tax tracking. Every crypto transaction is seamlessly added to your account and the tax liability is calculated in real time.
- Crypto tax filing support. The TokenTax team can help you file your tax return if you get stuck.
- Tax loss harvesting. The tax loss harvesting dashboard tells you exactly what your unrealised gains and losses are meaning you can sell assets to reduce your taxable gains.
TokenTax supports all countries, including the UK, Canada and Australia and can calculate reports in your native currency.
The team also says that they’re happy to help with any additional feature you require, even if it’s not currently part of the software.
5. CoinTracker
CoinTracker offers a free version for users who only make a small number of crypto transactions making it a good choice for those who only trade a few times a year.
Of course, the full fat packages offers all the features required for any level of crypto activity but you’ll need to pay a subscription fee for this, in a similar way to all the packages above.
Other features on offer include:
- An NFT centre. If you’re an NFT investor you’ll find this dedicated service particularly useful – all you need to do is enter your ETH (Ethereum) public address or ENS domain.
- Accountants login. If you use an accountant you can grant them access to your books on CoinTracker – useful if you don’t have the time. The other packages offer this as well.
- Free version. If you’re a low frequency trader you can use the software for free. This is especially useful for beginners.
There’s also a CoinTracker app available for Android or Apple, and a useful resources page which explains more about the tax position regarding crypto and answers many common questions about crypto tax.
Why do I need tax software for my crypto?
In the UK, Her Majesty’s Customs and Excise (HRMC) is putting crypto under the spotlight and tax legislation is constantly being updated.
You could opt to pay an accountant to keep track of your crypto transactions, but this is expensive and currently there are not many companies that offer this service.
It’s much simpler to use dedicated crypto tax software which enables you to connect your cryptocurrency exchange account or wallet and have all your transactions updated in real time.
Often there’s very little for you to do once your account is set up, with the software running in the background and doing your books while you sleep.
Which crypto tax software is right for you?
All the crypto tax packages above offer many similar features when it comes to keeping on top of your cryptocurrency transactions and complying with the tax law in your country.
Which package you choose will in part come down to the one you feel most comfortable using, although if you have a specific feature requirement it’s always worth ensuring the software supports it before signing up.
Another important factor is how many transactions you make, as there are free versions of some of the packages above if you’re a low frequency trader.
The software I’ve looked at above is a small snapshot of some of the best rated crypto accounting apps, but there are many more to choose from.
It’s always best to research a product thoroughly before signing up, especially if you’re committing to a monthly subscription.
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Disclaimer: Nothing on this website constitutes financial advice. The information provided is for educational purposes only.
