Zen Ledger Review: The Best Solution For Your Crypto Taxes?

Although Bitcoin and the whole cryptocurrency space have matured over the years, It is sufficiently fair to term it a bit complex in the accounting regard. No doubt, many crypto enthusiasts and investors have benefitted substantially by investing in the said ecosystem. Still, with over a thousand digital coins and tokens being traded every day, keeping track of your capital can be intimidating.

In the same way, if you are someone who trades daily, fulfilling your tax-paying obligations can be challenging. Many tracking and automated tax calculating software are working in the arena to help solve these challenges.

Such Tax Calculating software has successfully made investors’ life more manageable. With the help of few clicks, crypto enthusiasts can easily import all of their transactional data, calculate their taxes and generate their tax forms. One among the popular crypto tax calculators is ZenLedger, which is our topic of the day. 

In today’s review of ZenLedger, I will cover all the necessary aspects of this automated tool, which you need to know before starting using it. I will discuss its essential features, security aspects, tariff plans, its advantages and disadvantages, and many more. So without further ado, let’s get right into it.

What is ZenLedger?

To put it simply, ZenLedger is a cryptocurrency tax calculating tool which when connected with your trading exchanges and wallets, collects all your trading data(gains and income) and formulates your tax forms such as 8949, Schedule D, FinCen114, and FBAR. Not just that, ZenLedger can also be integrated with traditional tax calculators such as TurboTax and streamline all of your reporting processes to IRS directly. 

Developed by experts in accounting, finance, and technology, ZenLedger calculating tool is primarily famous among those working in the DeFi space as it facilitates these kinds of applications with top-notch automated support.

Besides this, the main idea behind using Zenledger is to assist you from hours of calculating your tax obligations as the software does that for you in a matter of few minutes. 

The Tax calculating software is compatible with all popular cryptos and fiat currencies such as Bitcoin (BTC), Ethereum(ETH), Litecoin(LTC), Dollars(USD), Euros, Pounds Sterling, Yen, and many others.

Although the automated software helps day traders or regular crypto hodlers to calculate their bitcoin taxes quite easily. The company behind this fantastic automation tool developed an interface with CPAs and accountants in mind. This means they made sure the program would be able to handle multiple clients from a single IRS-friendly interface.

Can beginners benefit from it? (100)

To answer the above question in a single word, then Yes! ZenLedger’s interface is compelling and easy to use that whether you are an experienced crypto trader or a newbie in the market, it fits all your requirements. But it is not just that; being a user-friendly interface is not the only reason behind its suitability for beginners. 

Other than the interactive user interface, ZenLedger’s customer support team is amongst the best. No matter if you are a paid member or not, the platform customer support is always there to help you through the platform. 

Secondly, users can download their entire tax report even with a free account, making it equally useful. Additionally, suppose you are in the crypto space for a long time but just planning to start focusing on Ethereum and a large number of DeFi applications. In that case, ZenLedger is the right option for you as it connects with DeFi applications as well. 

However, the only alarming thing to consider using ZenLedger is that as the automated tax tool creates auto-fill forms and reports supporting US citizens only, it may be challenging for users living in other countries.

Tax Forms that ZenLedger Supports

As we have mentioned above, ZenLedger is an excellent tax form formulating tool for users living in the US, but it does not mean that it is built to help only the United States citizens. Down below, I have mentioned the type of accounting methods the tool uses. If your country’s Tax department supports any of the methods mentioned, it is just the right tool for creating your tax forms.

• LIFO
• HIFO
• FIFI
• Schedule 1
• Schedule D
• IRS Form 8949
• Tax-Loss Harvesting
• Grand Unified Accounting
• Fincen 114 // FBAR

How to create an account on ZenLedger

To get started using ZenLedger, you need to visit the official webpage of the platform and press on the “Get Started for Free” button showing on the top right corner. The site will then take you to a standard account-creating form. You can either fill-up the form putting your email address and password or create your new account using your Coinbase or Google accounts’ credentials.

Once your account is set up and you are in your account, you will see a simple and easy-to-use interface to move forward, attaching your exchange accounts and wallets. 

For importing your trading history from your exchange account or wallet, you can perform either of the following options:

• Import directly using your exchange account’s API.
• You can first export your trading data in the form CSV file from your exchange and then import it to your ZenLedger account.
• Import Manually
• To import your wallet either through API or CSV method, you also need to make sure that it is of the blockchain the platform supports. 

How to Connect your CPA to your ZenLedger Account

To help achieve maximum compliance, ZenLedger crypto tax calculator software can also be connected with one’s CPA. ZenLedger tool enables CPAs to gather all the transactional data from all of their clients’ exchanges’ accounts and wallets. In this way, they can save a lot of time and make sure no transactions are left out. 

Following are the 4 easy steps one can follow to integrate your ZenLedger account with your CPA.

1. Hover over to the left sidebar, where you’ll be seeing a button dubbed “Work with CPA.”
2. Click on “Invite CPA.”
3. Put down your CPA’s complete name and email address.
4. An invitation is sent to your CPA, which he needs to accept to get access to your account.

It is also worth mentioning that if you are not associated with any CPA, the ZenLedger platform can also help you in this regard. They have a list of many crypto space’s specialized CPAs who are experts on the taxing subject along with the ZenLedger application.

ZenLedger: How Safe is it? (150)

Integrating ZenLedger with your exchanges and wallets is absolutely safe. The platform follows all the practices that the crypto industry recommends and has not met with any issue or security breach.

It is also essential to keep in mind that ZenLedger does not access your funds. Once integrated with your exchange, the tool only monitors your trading and collects the necessary data. 

Having said that, to bring peace to your mind, you can protect your ZenLedger account by turning on the 2FA protection, email notifications when you log in, and other account actions.

ZenLedger: Supported exchanges and wallets

The platform works with anything that matters in the arena of crypto exchanges and wallets. At the moment of writing this review, you can integrate the ZenLedger software with more than 400 crypto exchanges, 40+ blockchain protocols, and 20+ Defi applications. Besides this, they are constantly partnering up with newer exchanges and wallets on a weekly basis.

Following is the list of exchanges with which you can connect your ZenLedger account.

• Binance
• Kraken
• Huobi
• KuCoin
• Liqui
• Coinbase
• Bittrex
• Gemini
• HitBTC
• Poloniex
• Cryptopia
• IDEX
• BitMex
• Uphold
• Nexo
• Binance.US
• Binance. DEX

It is also worth mentioning that the platform only supports those coins which are backed by its partnered Blockchains, such as Bitcoin(BTC), Ethereum(ETH & ERC-20), Ethereum Classic (ETC), Bitcoin Cash(BCH), Dash (DASH), Litecoin(LTC), Ripple(XRP), Dogecoin(DOGE).

Down below, a few of the wallets that you can connect with your Zenledger account are mentioned:

• BitPay
• Copay
• Exodus
• Electrum
• MyEtherWallet(MEW)
• Keep Key
• Trezor
• Ledger Nano
• Ledger Blue
• Ledger HW
• Bitlox
• Bitlox Digital
• Abra
• Airbitz
• Freewallet
• Jaxx
• Infinito Wallet

Zenledger: Tariff Plans

The company behind the Zenledger cryptocurrency tax accumulating tool presents different plans for all kinds of clientele, whether they are experts or newbies.

In other words, no matter whether you are trading in the cryptocurrency arena for years or just made your first trade, Zenledger will have a tariff plan to meet your requirements. 

Free Package:

As the name suggests, you can subscribe to this tariff plan for free. Following is the list of features that you can enjoy using this plan.

• Imports Up to 25 Transactions per year
• Can Import detailed reports
• Premium Customer Support is available
• Does not support Advanced crypto use cases such Defi, Staking, Margin Trading

Starter Package: 

By subscribing to the Starter tariff plan of Zenledger, you can enjoy all the features mentioned above in the Free program. The only addition to this package from the Free plan is that you can import up to 100 transactions per year. This plan comes against $49.

Premium Package:

You can subscribe to this plan at the cost of $149. This plan also supports all the features mentioned in Free and Starter plans, but you can benefit from Advanced crypto use cases like Defi, Margin Trading, Staking. By opting for this plan, you can import up to 5000 transactions to your software. 

Executive Package: 

If you select ZenLedger’s Executive tariff plan, you can import unlimited transactions to your account tax calculation purpose. This plan costs $399. Besides this, you can enjoy all the features mentioned in the above Premium package while subscribing to this plan, which means you can benefit from margin trading, staking, and Defi application type of use cases. 

It is important to note that all the detailed reports that the above 4 packages provide include each type of form mentioned in the “Tax forms that ZenLedger Supports” section above.

Pros and Cons

Pros:

• Interactive UI and customer support
• Supports a wide range of exchanges, wallets, and coins
• Supports Defi Applications
• Integrates with TurboTax Calculator
• Provides excellent features even in its Free Package
• CPAs can also access your Zenledger account once allowed
• Premium Customer Support for all kind of clientele

Cons:

• Does not localize forms other than the US
• DeFi support is only available in pricey packages.

Conclusion 

Understandably, in recent years, there has been an increased interest in the idea of automated tax calculation, as it can be difficult and time-consuming for you to calculate your taxes on your own if you do not have an accounting background. With various software options available on the market today, ZenLedger is an excellent option to chose. 

Although the tools come at a bit pricey range compared to its rivals, namely, CoinTracker and CryptoTrader; their pricing is more manageable than you think. The platform also includes features like connecting with your CPA or traditional tax calculator which are accessible via TurboTax- all at a manageable price!

Besides this, the fact that it keeps on partnering up with more and more exchanges and wallets makes it a viable option for you to consider using it.