Best Cryptocurrency Accounting Software 2023
This article is part of a larger series on Accounting Software.
Small and midsize companies that conduct business in cryptocurrency, such as accepting crypto from customers or paying vendors with crypto, face some very challenging and unique tax and accounting requirements. Cryptocurrency isn’t treated as a true currency in the United States but, rather, as an investment asset. Therefore, every time your business spends crypto you must recognize a gain or loss. You’ll need specialized software and services to track gains and losses on crypto spent while also recording the expense paid for with crypto.
Here are a few recommendations for the best cryptocurrency accounting software:
- SoftLedger: Best all-in-one cryptocurrency accounting software for small to midsize businesses (SMBs) conducting business with crypto
- Bitcoin Sync by Blockpath: Best bitcoin integration for QuickBooks Online users
- Gilded: Best cryptocurrency QuickBooks Online integration for businesses using the Coinbase exchange
- Cryptio: Best cryptocurrency integration for Xero Accounting users
- Cryptoworth: Best cryptocurrency accounting software for in-depth portfolio analysis
Tip:
Many popular accounting programs have the option to record transactions in multiple fiat currencies, such as US dollars (USD), euros, and Canadian dollars (CAD). You cannot use this function to account for Cryptocurrency because it isn’t considered a fiat currency. Treating crypto as a fiat currency will result in a misstatement of your US tax liability and likely result in penalties. Crypto compliance has become a major focus of the IRS.
Comparison of Best Cryptocurrency Accounting Software
Monthly Pricing | Dedicated Accounting Module | Inventory Management | Reconciliation Tools | Mobile App | Reports | Invoicing & Billing | Asset Management | |
---|---|---|---|---|---|---|---|---|
Starting at $979 | ✓ | ✓ | ✓ | N/A | ✓ | ✓ | ✓ | |
Starting at $15 | N/A | N/A | ✓ | ✓ | N/A | N/A | N/A | |
$0 to $399 | N/A | N/A | ✓ | N/A | N/A | ✓ | N/A | |
$199 to $550 | ✓ | N/A | ✓ | N/A | ✓ | ✓ | N/A | |
$0 to $1,000 | ✓ | ✓ | ✓ | N/A | ✓ | ✓ | ✓ | |
Tip:
Businesses that simply want to accept cryptocurrency as payment can avoid the accounting headache and risks of holding crypto by using a payment processor that immediately converts the crypto collected from your customers into cash. Learn how to accept crypto and bitcoin. If your crypto is immediately converted to cash, you don’t need special accounting software and can save money by choosing one of our best small business accounting software.
SoftLedger: Best All-in-One Cryptocurrency Accounting Software
Pros
- Dedicated cryptocurrency accounting module
- Track crypto gains and losses for tax reporting automatically
- Build custom financial reports easily
- Attach Wallets directly into the software like a bank feed
Cons
- Customer support is only available online
- No mobile app available
- Software is too expensive for microbusinesses
- Developer skills are required to customize the software
Pricing
SoftLedger doesn’t provide detailed pricing information on its website, but the website indicates that prices start at $979 per month for SMBs and custom quotes for enterprise businesses. The SMB plan includes up to three users and up to five entities. To receive an accurate price, you must contact the provider. You can also demo the product before signing up.
If your SMB conducts business using cryptocurrency, then you need a fully customizable accounting solution that can handle cryptocurrency transactions. SoftLedger’s cryptocurrency accounting feature enables you to track and manage crypto-related transactions, and you can connect your crypto wallet directly to the software like a bank feed.
We selected SoftLedger as the best for consolidating entities with cryptocurrency transactions in our evaluation of the best multicompany accounting software:
- Crypto asset management: SoftLedger’s multiple dimensions and custom crypto asset management enables you to incorporate crypto transactions easily into your financials―in any jurisdiction. You can import crypto data from any source, manage multiple wallets and entities, and access consolidated reporting in fiat or crypto.
- Reporting: Detailed transactional accounting and reporting are available, which allows you to track your crypto transactions at scale automatically. When you transfer between multiple wallets and exchanges, cost basis will be tracked automatically. You can drill into reports quickly to view transactions in real time.
- Consolidated accounting: If you’re operating through a group of parent and subsidiary corporations, SoftLedger will allow you to merge all of your transactions and generate a single set of consolidated reports across subsidiaries and segments.
- General ledger (GL): All transactions are posted to the GL, which allows for streamlined financial reporting and management. The general provides insight into real-time financials, which allows you to make crucial business decisions. You can view it in either Summary or Detail modes.
- Inventory management: SoftLedger’s inventory management feature allows you to set up and track sales orders and inventory costs. You can track your stock in real-time, adjust quantities and costs as needed, and send purchase orders (POs) to vendors.
- Businesses with multiple entities and locations: SoftLedger lets you run separate or combined reports for multiple companies, offices, properties, or locations within a single platform.
- Manufacturing and other inventory-intensive businesses: SoftLedger allows you to track your inventory in real-time, increase or decrease the quantity on hand, and transfer stock between locations. You can track inventory by warehouses so that you’ll know where your stocks are located easily. Light manufacturing companies can also use SoftLedger to track the inventory of goods in multiple stages of production.
- Businesses with an in-house development team: The platform has a fully integrated application programming interface (API) that can be customized based on the exact needs of your business. This is particularly ideal for businesses working with in-house developers.
Bitcoin Sync by Blockpath: Best Bitcoin Integration for QuickBooks Online Users
Pros
- Ability to sync both bitcoin and traditional bank transactions with QuickBooks simplifies your accounting
- Your bitcoin transactions will be sorted directly into your QuickBooks Online account every hour, including your notes and exchange rate
- Monitor your transactions, balances, and ongoing capital gains earnings from within your QuickBooks account
Cons
- Only available as an integration for QuickBooks
- First-in, first-out (FIFO) is the only accounting method available for determining the cost of Bitcoin spent
- For crypto, only bitcoin is supported (other currencies are being implemented soon)
Pricing
You can use Bitcoin Sync for a flat monthly fee of $15 if you sign up for a commitment of more than three months. For less than three months, the monthly fee is $20. A 14-day free trial is available, and payment can be made via credit card or bitcoin.
You also need a QuickBooks Online account to be able to use this integration. Prices for QuickBooks Online start at $30 per month for QuickBooks Simple Start.
Bitcoin Sync by Blockpath is an integration that allows you to connect your QuickBooks Online account and sync your bitcoin transactions and capital gains reports into QuickBooks automatically. You can assign each of your bitcoin addresses to a QuickBooks account to organize transactions and view the cumulative balance and value in your home currency with current exchange rates synced with QuickBooks each day. A reconciliation tool that compares QuickBooks data against actual blockchain data will ensure that your accounts are accurate:
- Tax Prep tool: Bitcoin Sync’s Tax Prep tool provides year-end reporting with support for exchange trades and PDF/XLSX reporting. Your first-in, first-out (FIFO) capital gains will be calculated from incoming and outgoing transactions and imported into QuickBooks automatically, giving you a live view of your tax obligations.
- Customization of crypto transactions: You can set the QuickBooks customer, tax code, memo, and transaction type manually, or you can create a rule to set them automatically. You can also view bitcoin transactions as an invoice-style document and attach notes and customers to your payments.
- Automation: Bitcoin Sync creates accounts in your chart of accounts for each bitcoin address. Transactions are created in the account automatically when they occur, with the exchange rate attached. For outgoing transactions, the app also records the capital gain or loss in an income account.
- Reconciliation tools: You can use the reconciliation tools to view every transaction on the blockchain and within QuickBooks and can repair any discrepancies quickly. With auto-reconciliation, you can scan all QuickBooks account balances and transactions with one click and compare them with actual blockchain data.
- Contact book: Import your customers from QuickBooks, assign their names to bitcoin addresses, and link their payments to the customer records within QuickBooks for accurate customer tracking.
- QuickBooks Online users working with bitcoin: Bitcoin Sync by Blockpath connects to your QuickBooks Online account and imports your bitcoin transactions. You’ll also have access to your capital gains reports and a log of every change that has been made within the app.
- Businesses that want access to tax prep tools: With Bitcoin Sync, you’ll be able to use the Tax Prep tool to access year-round reporting. You’ll be able to view your FIFO capital gains and a live view of your tax obligations.
- Businesses that want to track customer data: Bitcoin Sync gives users access to a contact book, where you can assign your QuickBooks customers to bitcoin addresses and link their payments to the customer records.
Gilded: Best Cryptocurrency QuickBooks Integration for Using the Coinbase Exchange
Pros
- Pulls data from Coinbase exchange automatically
- Ability to reconcile, categorize, and tag all transactions
- Enterprise plan offers platinum support and education for your entire team
- Calculates exchange rates for each transaction automatically
Cons
- Data from other exchanges other than Coinbase must be imported via comma-separated values (CSV) file spreadsheets, which is not ideal
- Premium and Pro plans only have self-service customer support via a knowledge base or chatbot
- Cannot be used to accept crypto payments for a store because it doesn’t act as an online merchant
- Not an exchange, so unable to convert crypto to fiat
Pricing
- Free: Invoicing and spot pricing for one wallet
- Premium: $149 per month for $25,000 in transactions
- Pro: $399 per month for $150,000 in transactions
- Enterprise: Custom quote for unlimited transactions
You can get started with a free 14-day trial.
You’ll also need a subscription to QuickBooks Online starting at $30 per month.
Gilded is a cloud-based software that syncs crypto transactions to QuickBooks Online, allowing you to view all of your transactions in one place, send and receive crypto invoices, customize how crypto transactions are mapped to your chart of accounts, and view spot pricing in real time. You can also aggregate transactions from bitcoin and ethereum wallets along with leading crypto exchanges:
- QuickBooks compatibility: Gilded Premium users can sync all of their transactions to QuickBooks and reconcile them using a powerful dashboard. With this integration, you can map crypto addresses to the people and businesses that you interact with. Transactions can be classified as income, expenses, trades, and transfers.
- Crypto bill pay: Gilded allows you to accept both credit cards and crypto payments in one place with its noncustodial invoicing solution. Gilded supports both accounts receivable (A/R) and accounts payable (A/P) workflows and triple-entry accounting using Request Network.
- Compass: Gilded’s crypto accounting system, Compass lets you define rules for how crypto transactions are mapped to different accounts based on the counter-party and/or wallet. As new rules are created, it automates your reconciliation process increasingly.
- Crypto invoicing: An advanced invoicing and payment portal that’s powered by blockchain, Crypto Invoicing allows you to send invoices with an advanced scheduling option. You also can automate recurring invoices for subscription billing. Payments are detected in the memory pool (mempool) and reconciled automatically.
- Crypto mass pay: If you pay your employees in bitcoin or give bitcoin bonuses, then BTC Mass Pay is a good option. You can send bitcoin payments to up to 500 addresses in one batch transaction, and the tool updates each recipient with an email.
- Nonfungible token (NFT) platforms: Gilded allows you to generate auditable financial statements quickly for platform users, internal accounting purposes, regulatory agencies, and external stakeholders. Real-time performance insights give you full visibility into marketplace sales and collector engagement to grow revenue.
- Web-3-enabled companies: Gilded provides a single streamlined dashboard where you can view all wallets and crypto activity in one place. You can calculate exchange rates and historic pricing for each transaction automatically and include crypto transactions in financial statements.
- QuickBooks Online users: If you subscribe to Gilded Premium, you’ll be able to sync all of your transactions to QuickBooks and have access to a dashboard that allows you to reconcile them.
Cryptio: Best Cryptocurrency Integration for Xero Accounting Users
Pros
- Aggregate all of your transactions and assets in one place
- Crypto accounting courses are available, so you can become crypto-certified
- Exports and integrates data to meet all accounting and audit needs
- Able to attach invoices to your transactions, track future payments, and set a payment status
Cons
- No mobile app
- Software is only available in English
Pricing
Cryptio offers three pricing plans:
- Basic: $199 per month for up to 3,000 monthly transactions from one source
- Pro: $550 per month for up to 30,000 transactions from up to 10 sources
- Enterprise: Custom pricing
A free 14-day trial is available so that you can try the software before committing to it.
You’ll also need to subscribe to Xero for a full bookkeeping system starting at $37 per month for its Growing plan.
Cryptio lets you track all of your transactions from your wallets, crypto payment tools, exchanges, or custodians, and translate the data into records that are connected to your accounting software. Connecting your Xero account to Cryptio allows you to pull the chart of accounts directly from Xero. You can map your chart of accounts to your Cryptio transaction history, synchronize transactions, and export manual journals to Xero:
- Historical crypto-to-fiat valuation: The crypto-to-fiat valuation system provides complete transaction information, including exchange and time. Prices are sourced directly from exchanges at the exact time of the transaction.
- Dashboard: Cryptio’s dashboard provides real-time insights into which trades you should make to increase your tax refund. You can also export a cost basis report and send it to your tax advisor. Additional capabilities include tracking transaction history, reporting historical balances, and exporting ledger entries.
- Transaction labeling: You can categorize and resolve transactions at scale and set rules to assign your transactions automatically to the correct account. Cryptio also allows you to identify the counterparties of your transactions.
- Robust reporting: Cryptio’s powerful reporting capabilities allow you to access all the data you need to meet your accounting, audit, tax, and other financial reporting requirements. Reports include cost basis reports―FIFO and weighted average cost (WAC)―inventory tracking, and unrealized gains and losses tracking.
- 24/7 customer support: With Cryptio, you have access to 24/7 support and dedicated customer success teams. You also have access to a community of chief financial officers (CFOs), accountants, and auditors. Educational resources and events are offered so that you can stay on top of regulations.
- Treasury management teams: Whether you belong to a startup or enterprise company, if you’re a treasury manager who deals with crypto, then Cryptio is a good option. It automates the bookkeeping process, converting the data into traditional accounting reports needed for audits, compliance, and tax filings.
- Financial institutions, such as hedge funds and asset managers: Cryptio handles your digital asset accounting and reporting so that you can focus on preserving wealth. The platform is connected to every trade execution venue, custody solution, and DeFi application, giving you reliable insights on demand.
- Crypto native companies: Cryptio is the preferred accounting solution for companies building DeFi solutions, NFT marketplaces, metaverses, and blockchain games, staking platforms, and more.
Cryptoworth: Best Cryptocurrency Accounting Software for In-Depth Portfolio Analysis
Pros
- Mobile app tracks your wallets, exchanges, custody accounts, decentralized finance (DeFi) positions, and NFTs
- Simplifies cryptocurrency ownership across different platforms
- Dashboard provides easy access to data and reports
- Tools to support advance use cases, such as ATMs, over-the-counters (OTCs), custom exchanges, and defunct exchanges
Cons
- Free onboarding is only available with paid plans
- Only email customer support is available
- Basic (free) plan is limited to 100 transactions
Pricing
- Basic: Free for 100 transactions
- Business Tier 1: $300 per month for 50,000 transactions
- Business Tier 2: $600 per month for 150,000 transactions
- Business Tier 3: $1,000 per month for 300,000 transactions
- Enterprise: Custom pricing
Cryptoworth provides portfolio management and an accounting platform in one solution. The platform allows users to integrate their exchange accounts and wallets easily for the purpose of monitoring their assets on one interface. What sets Cryptoworth apart from other cryptocurrency monitoring platforms is that it provides the tools necessary for in-depth portfolio analysis while customizable charts and graphs organize the data in such a way that it showcases the portfolio’s performance history:
- Invoicing and billing: Cryptoworth allows you to send and receive crypto invoices and bills. You can receive payment in crypto in a few clicks while you control the wallets completely, and also attach bills and invoices to transactions.
- Scalability: Cryptoworth offers scalability from individual levels to enterprise levels so that you don’t have to change the software to meet the needs of growing cryptocurrency businesses. It’s connected to data points across the entire crypto ecosystem, enabling you to track millions of transactions and calculate cost basis as well as capital gains and losses.
- Cryptocurrency asset management platform: This platform is an intuitive crypto portfolio tracker, tax, and accounting module that serves to connect wallets and exchanges, synchronize transactions, and calculate taxes, among other things.
- Connectivity: Cryptoworth enables you to connect to blockchains, exchanges, DeFi protocols, custodians, NFT marketplaces, and traditional banks. It also offers transaction reconciliation and auditing and cost-based analysis.
- Strong security: Cryptoworth’s platform provides enhanced security features, such as two-factor authentication (2FA) to secure your financial data. Connections are also maintained through read-only data streams.
- Businesses that work remotely: Available for both iOS and Android users, Cryptoworth has a powerful mobile app that allows you to keep track of your portfolios and clients on the go. You’ll be able to track your wallets, exchanges, custody accounts, NFTs, and DeFi positions from within the app.
- Businesses seeking a scalable solution: Built with scalability in mind, Cryptoworth helps you run month-ends ten times faster through an automated crypto accounting software that adheres to Generally Accepted Accounting Principles (GAAP), International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS).
- Miners: Cryptoworth lets you track and account for all mined digital assets from wallet to wallet
How We Evaluated Best Cryptocurrency Accounting Software
To be included in our guide, the software must not only track gains and losses due to receiving and spending crypto, but it must also contain or integrate with a full double-entry bookkeeping system capable of sending invoices, managing bills, tracking revenue and expenses, and printing financial statements. Bonus points were awarded for software that offers a companion mobile app, excellent customer service, and in-depth portfolio analysis.
Frequently Asked Questions (FAQs)
How do you account for cryptocurrency in accounting?
The IRS considers cryptocurrency to be property, not an actual currency. Capital gains and losses need to be calculated by subtracting the cost of the crypto when purchased or earned from the value of the crypto when spent or sold. The capital gains and losses are then reported on Schedule D and Form 8949, if necessary.
Does QuickBooks work with cryptocurrency?
If you connect the Bitcoin Sync by Blockpath integration with QuickBooks Online, your bitcoin transactions will be sorted directly into your QuickBooks Online account every hour, complete with your notes and the exchange rate at the time of the transaction for tax purposes. Meanwhile, Gilded, a cloud-based software, allows its Premium users to sync all of their transactions to QuickBooks.
Bottom Line
With the exponential global growth of the crypto market, selecting the best cryptocurrency software for both novice and advanced crypto traders will help to streamline processes and save you time when taxes are due. From exchange and custody solutions to payment apps and mining software, we have recommended the best options for you.