In the cryptocurrency realm, everybody talks about investments, earnings, and making profits. However, the topic of crypto tax reporting is still highly underestimated and under-discussed. That being said, the government is implementing regulations and taxation policies, making navigating the crypto tax landscape difficult.
To address this challenge, several crypto tax software have risen to the occasion, offering effective and precise tax reporting. Among them are CoinTracker and ZenLedger. In this Zenledger vs. CoinTracker comparison, we will lay out all the features and functionalities of both software and underscore why ZenLedger stands out as a superior choice.
Let’s get started.
Top 6 Reasons Why Everyone Loves ZenLedger
Precision
The platform’s commitment to accuracy and compliance is unmatched. The audit report offered by the platform encompasses all crypto transactions for a specific tax year such as transfers, and buy and sell orders, and gives you an accurate and precise tax calculation. Moreover, this report organizes and consolidates all crypto transactions and provides an in-depth overview of tax loss harvesting strategies, capital gains management, and tax filing. Also, ZenLedger’s EndofYear Valuation Report makes it simple for you to review your transactions with a user-friendly spreadsheet with a summary of all the transactions from different sources.
Customer Support
ZenLedger offers top-notch customer support with round-the-clock availability seven days a week. Not only that, the responsive approach is further met by swift issue resolution by experts. It’s fair to say that the lightning-fast response has become a signature move of the ZenLedger customer support team as they solve customer queries within minutes. This shows that ZenLedger is dedicated to its customers and prioritizes their peace of mind.
But, that’s not all. You can get more comprehensive support from ZenLedger. From 15-minute support calls to detailed 30 to 60-minute sessions, the expert support team is with you till the problem is solved. Lastly, ZenLedger provides two hours of premium personalized support from a customer service representative.
Alternatively, CoinTracker only has email support for now and live chat might be introduced to its users later. Users can also connect with a tax pro with their tax pro product.
Intuitive User Interface
ZenLedger delivers a user-friendly experience with its simple and intuitive interface. The dashboard is simple, organized, and streamlined for you to go through your transactions, view reports, and access various other features.
ZenLedger’s tax calculation takes only three steps:
- Import your crypto transactions from the exchange
- Review your crypto transactions from the exchange
- Download and fill out your crypto tax forms
Also, for a better user experience, ZenLedger integrates with 550+ exchanges, wallets, and DeFi protocols. This allows users to import thousands of transactions across multiple exchanges into one platform for an automatic and hassle-free calculation.
Automated Processes
Before talking about automation, let’s talk about simplification. ZenLedger seamlessly integrates with popular online tax tools like TurboTax and TaxAct, offering a unified platform for the convenient filing of taxes. This includes entire portfolios, encompassing crypto holdings while eliminating the risk of errors associated with manual data entry—ZenLedger takes care of the heavy lifting.
Now comes automation. ZenLedger’s software empowers users to effortlessly expand their client base, accommodating those with unique tax requirements. This efficient tool not only saves time but also enhances income potential. With automation at its core, ZenLedger ensures a smooth tax management experience, solidifying its status as the preferred platform for cryptocurrency tax professionals.
In addition, ZenLedger provides three comprehensive tax professional services. The Tax Pro Consultation, priced at $275, offers a 30-minute confidential session with a crypto tax expert to address queries and concerns. The Tax Pro Prepared Plan Single Year, available at $3,500 per year, involves tax professionals preparing crypto tax returns while optimizing tax liability. For users with multiple years of returns requiring filing or amendments, the Tax Pro Prepared Plan MultiYear, priced at $6,500 for two years, streamlines the process with assistance from professional tax partners. All services are conducted by trusted crypto accountants, ensuring accuracy and providing peace of mind. ZenLedger’s flexible packages cater to various needs, whether it’s handling part or all tax returns, addressing an IRS notice, or navigating an audit.
On the flip side, CoinTracker provides users with real-time insights into their investment performance, market value, and portfolio allocation. Additionally, the platform automatically optimizes cost-based accounting methods and facilitates tax-loss harvesting for your portfolio.
Data Security and Encryption
ZenLedger proudly holds the SOC 2 certification, underscoring the strength of its security controls and procedures. To validate this, independent third-party audits and annual penetration testing rigorously assess the efficacy of the security measures in place. Team security awareness is fortified through clearly defined roles, mandatory security training, and the implementation of confidentiality agreements.
ZenLedger’s services on AWS and GCP prioritize security through encryption, routine vulnerability scanning, and active monitoring. Business continuity is assured with robust backup services, and in the event of incidents, well-defined response procedures are promptly executed. Access to ZenLedger’s systems is tightly controlled, leveraging Single SignOn (SSO), TwoFactor Authentication (2FA), and robust password policies. Regular evaluations further bolster security, with quarterly access reviews and risk assessments becoming standard practice.
CoinTracker, on the other hand, prioritizes security with encrypted SSL traffic, SQL injection filters, and stringent authentication for requests. Passwords are hashed using bcrypt, and token-based two-factor authentication is supported. Annual penetration tests and SOC 1 and SOC 2 compliance underscore our commitment to providing a highly secure platform for user financial information. Still, in a recent incident, CoinTracker user emails were exposed due to its email service provider database being breached.
Find Out Why More And More Investors Are Choosing ZenLedger
Zenledger vs. Cointracker: Head-to-Head Comparison
Transaction importing and tracking capabilities
ZenLedger offers a portfolio tracker that allows you to see their crypto holdings, gains or losses, or value in real-time. It is a valuable tool for tracking and monitoring the performance of their investments.
Even though CoinTracker offers a portfolio tracker, ZenLedger offers more in terms of customization. For instance, you can create custom profiles, specify which assets are taxable, and even set up tax loss harvesting.
ZenLedger’s portfolio tracker is free and allows you to analyze current portfolio performance and more. However, CoinTracker’s portfolio tracker charges $14 a month under the basic plan and you can monitor 30 wallet addresses. For professional traders looking to track up to 100 wallet addresses, the Pro subscription is available for $99 per month. So, in this Zenledger vs. CoinTracker round, ZenLedger takes the lead.
Tax Loss Harvesting Tools
A tax loss harvesting tool is a crucial tool to have by your side, given its significance in optimizing tax liabilities. ZenLedger’s tax loss harvesting feature can automatically identify which of your crypto holdings have lost value so that you can sell them to claim the loss on your taxes. It is available for all the plans.
CoinTracker’s tax loss harvesting tool is indeed valuable, but it comes with a cost. Users can access this feature by subscribing to the Portfolio Tracking service. Again, in this CoinTracker vs. ZenLedger round, ZenLedger wins.
Tax Form Generation
ZenLedger provides a comprehensive range of tax forms to cater to your cryptocurrency reporting requirements, including:
1. Crypto Income Report (IRS SCHEDULE 1)
2. Capital Gains and Losses Report (IRS SCHEDULE D)
3. Sales and Other Dispositions (IRS FORM 8949)
4. Mining and Staking Income Report
5. Audit Trail Report
6. Report on YearEnd Valuation
7. Accountability Report
8. Cryptocurrency Gifting
ZenLedger’s diverse set of tax forms ensures you have the necessary tools to effectively manage your cryptocurrency tax reporting.
Comparatively, CoinTracker offers Form 8949, Schedule D, and Schedule 1, covering all essential elements for completing the cryptocurrency section of your tax filing. However, lacking other detailed reports may not help with thorough crypto tax reporting. In this third CoinTracker vs. ZenLedger comparison, ZenLedger comes out on top.
Integration with Tax Platforms
CoinTracker offers integration with TurboTax to facilitate streamlined tax filing. One drawback is its limited integration with just a single tool. Conversely, ZenLedger stands out, accounting for its seamless compatibility with well-known online tax platforms like TurboTax and TaxAct. This integration enables you to complete your tax filings for your entire portfolio, including cryptocurrency holdings, on a single platform. No more concerns about manual data input or potential errors; ZenLedger handles all the intricate aspects of tax preparation, simplifying the process for you.
Quality of Customer Support and Overall User Experience
ZenLedger provides round-the-clock customer support seven days a week. ZenLedger’s customer support is known for its lightning-fast response, addressing queries within minutes. Whereas CoinTracker offers a helpbot named Chatoshi to assist with specific concerns, connecting users to the Support team if needed.
While CoinTracker tries to provide a seamless experience for users who have submitted a support ticket, ZenLedger takes it a step further with various support options. ZenLedger offers not only quick responses but also 15-minute support calls, detailed 30 to 60-minute sessions, and two hours of premium personalized support from a dedicated customer service representative.
In essence, while both platforms offer customer support, ZenLedger stands out with its 24/7 availability, swift response times, and a range of support options to cater to different user needs.
In terms of user experience, ZenLedger stands out as an exceptional option, particularly for individuals new to the realm of cryptocurrency taxation and the broader crypto environment. Its user-friendly interface is noteworthy, but what truly distinguishes ZenLedger is its remarkable accessibility for beginners, positioning it as a top choice for those venturing into this intricate landscape.
- 25 transactions or less
- All detailed reports
- Premium Support
- Audit Report
- Tax Pro Access
- HIFO/FIFO/LIFO
- Unlimited Exchanges
- Mining or Donations
- ICOs & Airdrops
- Tax Loss Harvesting
- Crypto as Income
- FinCen/FBAR Alert
- TurboTax Integration
Cost Analysis
Let’s compare ZenLedger and CoinTracker based on their plans and features:
Free Plans:
ZenLedger:
- Up to 25 transactions.
- Premium Support, Audit Report, Tax Pro Access.
- HIFO/FIFO/LIFO.
- Unlimited Exchanges, Mining or Donations, ICOs, and airdrops.
- Tax Loss Harvesting, Crypto as Income.
- TurboTax Integration, API, and CSV support.
- Margin Trading, Cryptocurrency Donations.
Various detailed reports and features like YearEnd Valuation, Crypto Income, Mining, and Staking Revenue.
CoinTracker:
- Up to 25 transactions.
- Cost basis & capital gains, Error reconciliation, Tax pro collaboration.
- Download tax forms and support for over 2500 cryptocurrencies.
- Auto sync with unlimited exchanges and wallets.
- Cost basis methods, Transaction history CSV, Capital gains CSV.
- Referral to affiliate crypto tax advisor, Forum support.
- Margin trading, DeFi functionality.
Analysis:
- Both offer a comprehensive set of features in their free plans.
- ZenLedger provides a wider range of detailed reports and additional features such as TurboTax Integration, API and CSV support, and various reports, making it more feature-rich.
Paid Plans Comparison:
1. ZenLeger’s Starter ($49 a year) Vs. CoinTracker’s Hobbyist ($59 a year)
- Both support up to 100 transactions.
- ZenLedger includes more features like Premium Support, All detailed reports, FinCen FBAR Alert, TurboTax Integration, Tax Loss Harvesting, Audit Report, Tax Pro Access, and more
2. ZenLedger’s Premium ($149 a year) Vs. CoinTracker’s Premium ($159 a year)
- ZenLedger supports up to 5,000 transactions.
- ZenLedger includes DeFi/Staking/Margin Trading, All detailed reports, FinCen FBAR Alert, TurboTax Integration, Tax Loss Harvesting, Audit Report, Tax Pro Access, and more
- CoinTracker supports up to 1,000 transactions
- CoinTracker includes Tax summary by wallet, Priority product support, Product support – 24 hrs
3. ZenLedger’s Executive ($399 a year) Vs. CoinTracker’s Unlimited ($599 a year)
- ZenLedger supports up to 15,000 transactions.
- ZenLedger includes all detailed reports, DeFi / Staking / NFTs, Margin Trading, detailed reports, FinCen FBAR Alert, TurboTax Integration, Tax Loss Harvesting, Audit Report, Tax Pro Access, and more
- CoinTracker offers unlimited transactions.
- Everything in Premium plus custom features
4. ZenLedger’s Platinum ($999 a year)
- ZenLedger provides unlimited transactions and 2 hours of premium support from a dedicated customer service agent.
- This plan includes DeFi/Staking/Margin Trading, All detailed reports, FinCen FBAR Alert, TurboTax Integration, Tax Loss Harvesting, Audit Report, Tax Pro Access, and more.
Overall Cost Analysis
ZenLedger stands out by offering higher transaction limits across its plans when compared to CoinTracker. Moreover, ZenLedger includes premium support, audit reports, and a broader array of detailed reports, providing users with a more comprehensive and robust set of features. While ZenLedger’s pricing may be slightly higher in certain tiers, the added value in terms of features and support makes it a superior choice for users seeking a more extensive feature set and higher transaction limits.
Not only this, ZenLedger provides users with three tax professional services. Firstly, there’s the Tax Pro Consultation priced at $275, which includes a 30-minute confidential session with a crypto tax expert to address queries and concerns. Secondly, the Tax Pro Prepared Plan – Single Year, available at $3,500 per year, involves professionals preparing your crypto tax return while optimizing your tax liability. Lastly, for those with multiple years of returns requiring filing or amendments, the Tax Pro Prepared Plan – Multi-Year, priced at $6,500 for two years, simplifies the process with assistance from tax professional partners. In the last in this Zenledger vs. CoinTracker round, ZenLedger comes out as the clear champ.
Concluding Thoughts – ZenLedger Vs. CoinTracker
To provide a succinct conclusion, ZenLedger emerges as the superior choice in crypto tax tracking due to its precision, robust customer support, intuitive interface, automated processes, data security measures, and a more comprehensive set of features. While CoinTracker offers valuable services, ZenLedger’s added functionalities, customization options, and extensive support make it the preferred platform for navigating the complexities of cryptocurrency taxation. Ultimately, the choice between the two platforms should consider individual needs, preferences, and budget constraints.
