The Accountant’s Guide: Choosing a Third-Party Crypto Tax Tool

Ameli

— 2 min read

Crypto is no longer a niche asset class — businesses, investors, and everyday traders are now widely involved in digital currencies. For accountants, this creates a challenge: how do you accurately calculate gains, income, and reporting obligations across blockchains and platforms? Doing it manually is time-consuming and risky. That’s where third-party crypto tax tools come in.

This guide breaks down how to choose the best solution so you can serve your clients efficiently and confidently.

Why Accountants Need a Crypto Tax Tool

Traditional tax software often lacks blockchain support. Crypto tax tools fill this gap by:

  • Importing large volumes of transactions automatically
  • Handling DeFi, NFTs, and staking income
  • Applying appropriate tax logic for each jurisdiction
  • Producing audit-ready reports

Using the right tool saves time and reduces mistakes — especially critical for busy tax seasons.

What to Look for in a Crypto Tax Tool

Here are key criteria accountants should consider:

1. Comprehensive Exchange & Wallet Support

Your clients may use many platforms — from Coinbase and Binance to MetaMask and Ledger wallets. A good tool should import transactions via:

  • API connections
  • CSV uploads
  • Blockchain wallet addresses

More supported platforms mean less manual data entry.

2. Advanced Tax Logic

Different tax rules apply to each country. Look for tools that can:

  • Handle multiple accounting methods (FIFO, LIFO, HIFO)
  • Apply local crypto tax laws
  • Adjust for margin trading, DeFi yield, and NFTs

This flexibility ensures accurate results across diverse client profiles.

3. Clean, Audit-Ready Reports

Accountants need more than just totals. Look for tools that generate:

  • Capital gains summaries
  • Detailed transaction logs
  • Income vs. cost basis breakdowns
  • Compatible format for tax filings

Audit-ready export formats save hours of manual formatting.

4. Security and Data Privacy

You’re handling sensitive client data. Choose tools that:

  • Are read-only (no withdrawal access)
  • Use strong encryption
  • Follow privacy best practices

Protecting client data isn’t optional — it’s a professional duty.

5. Multi-User & Team Support

If you work in a firm, collaboration features matter. Good tools often offer:

  • Shared client dashboards
  • Team permissions
  • Centralized client management

These features improve workflow and client service.

Here’s a high-level look at some well-known solutions accountants often consider:

🔹 Koinly

  • Strong wallet and exchange support
  • Easy setup and clean reports
  • Portfolio tracking + tax calculations
  • Good choice for firms handling many clients

Great balance of ease of use and power.

🔹 CoinTracker

  • Automated sync across platforms
  • Intuitive UI
  • Good for clients with moderate transaction volume

Works well for individual client cases.

🔹 TokenTax

  • More tax professional-oriented
  • Handles complex crypto scenarios
  • Can be pricier

Ideal when deep tax logic and custom reports are needed.

🔹 Accointing

  • Useful for portfolio and tax tracking
  • Growing exchange support
  • Simple dashboards

Good choice for smaller practices or beginners.

How to Choose the Right Tool for Your Practice

Here’s a quick decision guide:

📍 If you manage many clients with diverse assets:

Choose tools with broad platform support, flexible reporting, and firm-level features (like Koinly or TokenTax).

📍 If your clients trade infrequently:

Simplicity and cost matter — user-friendly tools like CoinTracker or Accointing may work.

📍 If clients use DeFi, NFTs, or complex strategies:

Prioritize tools with advanced tax logic and customizable reporting.

Best Practices When Using Crypto Tax Software

✔ Always verify imported data before finalizing reports
✔ Label transfers and categorize special transactions manually if needed
✔ Keep well-organized client records outside the software
✔ Stay updated on tax law changes for each client’s jurisdiction

Good processes matter as much as the tool you choose.

Final Thoughts

Every accountant working with crypto needs a reliable tax tool. The right choice depends on your clients’ complexity, your workflows, and your jurisdiction’s tax rules. Prioritize tools that automate data import, handle real-world crypto activity (like DeFi and NFTs), and generate clean, audit-ready reports.

With the right system in place, you’ll spend less time crunching numbers and more time advising clients.

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