Cryptocurrencies such as Bitcoin and Ethereum offer the world an extensive amount of exciting opportunities, but with this opportunity comes plenty of challenges. One of the most frequent challenges that prospective cryptocurrency users face is how to track cryptocurrency activity. From tracking your individual transactions to helping you accurately file your cryptocurrency taxes, the right cryptocurrency accounting software needs to offer many benefits to help you get the most out of your transactions.
Screening Your Options for Cryptocurrency Accounting Software
When searching for cryptocurrency accounting software online, you’re met with an overwhelming amount of options. There are many important factors to consider when screening your options.
Perhaps the most important factor to research is the overall reputation for each prospective company. You’ll want to look for testimonials and reviews from verified consumers that speak to the company’s values and data privacy policies. Another factor that adds to a company’s legitimacy is an easily accessible headquarters address on their website.
Additionally, you’ll want to choose a cryptocurrency accounting software that offers transparent pricing so you know exactly what you’ll be paying. Many software providers offer confusing pricing models that often lead to additional charges to offer premium features. The more reliable cryptocurrency software options will offer straightforward and transparent pricing.
Once you’ve narrowed down your pool of options based on reputation, you’ll next want to look toward the feature sets offered. The most important feature to consider is the malleability of the data. You’ll want a software that can ingest data through the use of automation tools such as APIs as well as manual tools such as CSV uploads. Additionally, you’ll want the cryptocurrency accounting software to offer data validation and transaction matching capabilities.
After considering how the software you’re evaluating takes in your data, you’ll want to ensure it can handle all types of cryptocurrency transactions. There are many types of cryptocurrency transactions such as margin trading, staking, mining, airdrops, and more. With so many transaction types, it’s imperative that you choose a software that’s capable of handling a myriad of transaction types.
There are two final factors you’ll want to consider while selecting your software is the ability for data backups and CPA assistance. Data backups are crucial for record keeping best practices and ensures your transaction data is always safe. Lastly, you’ll want to consider the software’s ability to connect you with a CPA. Having a cryptocurrency CPA assist in the preparation of your cryptocurrency tax documents ensure your filings are compliant with the most up to date rulings and regulations.
Taking all of the above factors into consideration, we believe the best cryptocurrency accounting software currently on the market is CoinTracking.info. CoinTracking.info has an excellent reputation in the industry and it’s paired with a full package of features and transparent pricing. CoinTracking.info offers both automated and manual data uploads, data backups and the ability to handle a myriad of complex cryptocurrency transactions. Add in the ability to be connected to a CPA through the platform and CoinTracking.info offers a compelling suite of features that cannot be beat!
If you have additional questions about choosing the right software, don’t hesitate to reach out to our team at Founder’s CPA for guidance!