Home » The Ultimate Guide to Crypto Accounting Software According to Reddit Users

The Ultimate Guide to Crypto Accounting Software According to Reddit Users

Here you’ll find Reddit user experiences addressing common questions about crypto tax software. This article aims to guide readers through the opinions and feedback on the diverse alternatives for crypto accounting software. 

What Crypto Accounting Software Should You Use? Reddit Answers Only

Searching for crypto accounting software for the first time can surely be daunting. Reddit, with its myriad of user opinions, has become a valuable resource.

Let’s explore what Reddit users say about crypto tax software and bookkeeping solutions.

Why read Reddit for Crypto Accounting Software?

Reddit is a treasure trove of firsthand user experiences. Individuals share their real-world experiences, providing insights that polished marketing materials often miss. Reddit users range from crypto enthusiasts to professional traders, making it a diverse community for honest feedback.

Although you will find some SPAM messages or “sponsored” organic comments from the software vendors themselves, their level of comments is always brutally honest.

Subreddits included in this research

The following subreddits were analyzed to gather insights and feedback on various crypto accounting software:

  • r/CryptoTax
    Discusses various tax software options and user experiences.
  • r/CryptoCurrency
    General discussions on cryptocurrency topics, including software recommendations.
  • r/Accounting
    Focuses on accounting practices and tools, including those for cryptocurrency.
  • r/taxpros
    Dedicated to tax professionals discussing various software and tax issues.
  • r/ethereum
    Focused on Ethereum-related topics, including software for accounting and tax purposes.
  • r/solana
    Discussion about Solana projects, including accounting software suitable for Web3 companies.

Who are Reddits’ comments better on crypto accounting for?

Disclaimer: Most of the Reddit forums explored in this article, which are the most common ones, feature insights from individual users. If you need an enterprise-grade solution or crypto accounting software for business, the G2.com ranking platform might be more reliable, as they have launched a new “Crypto Accounting Software Category”.

Cryptoworth has been at the top of the chart on G2 for some time, earning multiple recognition badges for Best Performer, Ease of Setup, and Quality Support

For more detailed reviews, visit the G2 ranking website.

What Is the Most Mentioned Crypto Tax Software on Reddit?

Based on Reddit discussions, Koinly emerges as a popular choice. “100% Koinly. Give them API access and/or your wallet address, and it does it for you[1] says one Redditor. This intuitive user experience is a recurring theme among Reddit users.

However, Koinly isn’t the only software getting attention. CoinTracker, CoinLedger, and CryptoTaxCalculator also have their advocates. Crypto tax software mentioned by Reddit’s users:

  • Koinly
  • CoinTracker
  • CoinLedger (formerly CryptoTrader.Tax)
  • CryptoTaxCalculator
  • Bitcoin.Tax

For an honest take on Free Crypto Tax Software, continue reading “Are FREE Crypto Tax Software Any GOOD?

Common Complaints About the Crypto Accounting Software on Reddit

Despite the positive mentions, there are plenty of gripes. Accuracy and data reconciliation are significant pain points. “They’re all sh*t[2] one frustrated user exclaimed, highlighting a common sentiment about the unreliability of these tools. Issues with handling large volumes of transactions and diverse portfolios are frequent complaints. 

Reddit users have a lot to say about the limitations and issues they encounter with crypto accounting software. Here are some of the most frequently mentioned complaints and frustrations:

1. Accuracy and Data Reconciliation

   Many users find that these tools struggle with accurately parsing and reconciling transaction data. One user expressed their frustration, saying, When you upload the info from CSV files or whichever, there shouldn’t be errors that are 15k off.[2] This highlights the significant discrepancies that can arise, making manual checks essential.

2. Handling High Transaction Volumes

   High transaction volumes can overwhelm many crypto accounting tools. “Cointracker… was not impressed but the price was reasonable. Had to do a lot of modifications to many transactions[1] noted one Redditor. This points to the labor-intensive adjustments needed to ensure accurate reporting.

3. Cost and Subscription Plans

   The cost of these tools can be prohibitive, especially for those with extensive portfolios. “If you really have 5000 transactions, you can upgrade up to 10,000 actual transactions for $599/year[3] one user pointed out, indicating the steep pricing tiers for high-volume individual users. Another user mentioned, “CoinLedger doesn’t support a lot of the new tokens as of yet. I don’t trade often. I have very few trades.[4] highlighting the lack of support for newer tokens.

4. Support for Various Tokens and Transactions

   Users frequently report that these tools do not support all tokens or types of transactions. “None of them offer free trials. I have the same question[5] remarked a user frustrated with the limited trial options and the need for upfront payments without the chance to evaluate the software’s performance first.

5. Manual Intervention Required

   Despite the promise of automation, many users find they still need to manually verify and adjust their data. “None of the software is perfect, and there’s definitely some manual work that needs to be done[6] observed one user, reflecting a common sentiment.

6. Integration with Other Financial Tools

   Integration with other accounting systems like QuickBooks or Xero is crucial but often problematic. One Redditor mentioned their preference for Xero over other tools due to its support for crypto clients via Xero’s app store.

7. Data Privacy and Security Concerns

   Privacy and security are significant issues for many users. “I’m always worried about the amount of personal information these platforms require[1] one user commented. Another added, “What guarantees do we have that our data won’t be compromised? It’s a major concern given the sensitive nature of financial data.”[1] These concerns underscore the importance of robust security measures and transparent data policies in crypto accounting software.

By addressing these common complaints and understanding the specific challenges users face, potential adopters can make more informed decisions about which crypto accounting software to use. 

For those looking for more robust, enterprise-grade solutions, platforms like Cryptoworth, which rank highly on G2, may provide more comprehensive support and fewer headaches. For more detailed reviews and to book a demo, visit our review website.

What Reddit Users Are Saying About Crypto Accounting

Reddit discussions reveal a mixed bag of experiences. Some users appreciate the convenience these tools offer, while others find them lacking. “Koinly is easy as hell to use. I haven’t tried others[1] one user shared. Another echoed this, saying, “I use Koinly. It’s pretty accurate and straightforward[6].

Yet, many users express a need for manual intervention. “None of the software is perfect, and there’s definitely some manual work that needs to be done[6] a Redditor pointed out. This indicates that while these tools can streamline processes, they still require a significant amount of user oversight.

Is There One Crypto Tax Software That Can Solve It All?

The consensus on Reddit is clear: no single software does it all perfectly. Each has strengths and weaknesses. Koinly, CoinTracker, and CoinLedger are popular, but none are without flaws. “I feel there is no one complete, totally useful option out on the market yet[1] a user summarized​​.

For a deeper dive into this topic, check out our article, Are there GOOD & FREE crypto accounting software? This piece explains why most crypto tax software is inadequate and incomplete for business accounting needs.

Data Challenges in Web3 Accounting

Handling blockchain data is inherently complex. Most crypto accounting software struggles with accurate data parsing, classification, and reconciliation. The vast amount of blockchain data, combined with diverse transaction types, makes it challenging to achieve 100% accuracy. “Crypto accounting is extremely time-consuming. It’s hard to find values like cost basis, unrealized/realized gains/losses, and gas fees[7] a user noted.

Why You Need a Crypto-Savvy Accountant

Given the complexities of crypto accounting, having a crypto-savvy accountant can be invaluable. They can navigate the intricacies of blockchain data and provide accurate financial reporting. However, this expertise comes at a cost, which might be prohibitive for some users. “It’s not for everyone, but having an accountant well-versed in crypto can make a significant difference[3] a Reddit user commented.

For further guidance, refer to our article, “What is the Best Crypto Accounting Firm for Your Business?” This guide offers seven key insights to help you choose a firm that aligns with your crypto accounting needs, blending compliance and strategic finance. It includes a list of 37 alternatives of professional accountants and tax experts.

Conclusion

Reddit provides a candid look at the crypto accounting software landscape. While tools like Koinly, CoinTracker, and CoinLedger are popular, they are not without issues. For comprehensive solutions, especially for businesses, consulting professional reviews and considering robust options like Cryptoworth is advisable.

If you have any questions or want to book a demo, please contact our team.

Sub-Reddits sourced in the article:

[1] Which crypto tax software is best in America? Degen problems

[2] Suggested crypto tax/accounting program/service for heavy use (high # of transactions across multiple coins/wallets/apps/chains)? Thank you

[3] Looking for recommendations for Crypto TAX Software’s that work 

[4] Koinly vs. CoinTracker vs. CoinLedger: What’s the best crypto tax software?​

[5] Crypto Tax Software

[6] Crypto Tax Software Accuracy

[7] Crypto accounting software for Web 3 companies.

Ariel Eiberman

Ariel Eiberman is the marketing lead at Cryptoworth, a leading crypto accounting software that helps web3 accountants speed up month-end closing. He has more than 6 years of experience in product marketing for software companies and a background of organizing olympic games and polyglot meetups in multiple cities.

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