This is a story about crypto tax software APIs. But first, why are we telling it?
The crypto tax and accounting software arm of the crypto ecosystem is now fast growing. For a long time, this department has been very slow to catch up with the rest of the ecosystem, thanks to the slow adoption of cryptocurrencies by regulatory bodies and financial experts.
But with the increased rate at which individuals and corporate institutions are adopting crypto, it’s no surprise that financial regulating bodies are fast recognizing it as a properly taxable asset similar to stocks, bonds, and real estate.
This is why we now have crypto tax and accounting software. Some common examples are Softledger in the US and Moneyviz in Italy.
So, for the rest of this story, we’ll be narrating how the cryptocurrency industry has warped itself with the tax and accounting industry. Then we’ll take a bow by letting you in on one of the most potent crypto software API weapons for those who want to build such software solutions.
The Place of Accounting and CPA Firms in the Cryptocurrency Industry
With the Feds shooting keen-eyed stares at owners and investors in digital assets, understanding where you stand regarding taxing is important to avoid potential criminal charges, penalties, and interest.
This growing awareness points to a need for accounting firms to find efficient ways to cater to a new market of clients.
As always, data is key.
This is where crypto the crypto industry shakes hands with the taxing industry. Crypto-wise CPA firms can easily manage investors’ digital assets, efficiently tracking the full extent of their clients’ portfolios for data aggregation and normalizing for tax filing.
The Importance of Crypto Tax Software APIs
Innovative technology is at the heart of every successful enterprise and industry. The right technology allows you to communicate with other businesses, boost your workflow processes, and optimize operations.
A crypto tax software API should be your bread-and-butter in accounting. There’s no better way to aggregate your client’s data efficiently and quickly enough to beat deadlines to complete tax filing and necessary reports.
The chances are that your firm uses any one of the many asset management and tax software tools for research, analysis, reference, and data management. Your workers probably spend hours entering and reentering data into Excel sheets and scouring vast databases for structured information.
With a crypto tax software API, you can say goodbye to all the hassle and embrace the efficiency and convenience that come with precise data reporting. The API serves as a communal interface that helps you access the necessary data from your clients’ digital asset accounts.
Not only will your workflow process be more efficient, but many repetitive tasks will also become seamlessly automated, and your staff won’t be overburdened with boring, repetitive work, allowing them to concentrate on the more exciting, technical parts of the job.
There will be fewer human errors, and you’ll save more money and time from the optimized productivity levels.
What To Consider When Choosing A Crypto Tax Software API
APIs form the bedrock for cross-platform interoperability in any organization, and accounting is no exception. When choosing a crypto accounting API solution, here are some crucial factors to look out for:
Crypto APIs work by communicating with various servers linked to exchanges, blockchains, DeFi platforms, and digital wallets.
Before choosing a crypto accounting API solution for your CPA, check for the availability of integrations with major exchanges. It’s even better if the API gives you access to multiple digital assets across the crypto ecosystem, just the way Vezgo does it.
As a CPA firm, data is your bread and butter. Any crypto tax software API solution that you use must have accurate data reporting features.
Before calculating capital gains tax, you must scour the API, making endpoint calls to cull relevant data on trades, purchase dates, sales, swaps, and other crucial metrics. All of this has to be without error and correspond to the appropriate dates, while market prices must reflect the realities of crypto volatility as required.
There’s really no point choosing a crypto tax software API that isn’t designed to scale.
The entire point of using APIs is to make accounting reporting and tax filing easy. The best solutions allow you to track your clients’ transactions at scale, including seamless dealings cross-platform across wallets and exchanges.
With real-time reporting and zero batch processing, your workers will thank you for easing their tasks, and you can improve productivity and profitability due to your ability to scale.
How Vezgo Helps Accounting and Tax Companies With Crypto Taxing?
Crypto APIs are highly useful for creating dedicated crypto accounting and tax solutions. As one of the biggest names on the market, Vezgo’s unique crypto tax software API boasts a plethora of reporting, analytical and scalable features to help your CPA firm meet the needs of this budding market.
Here are the unique selling points of the Vezgo crypto API and how it befits your CPA firm:
Vezgo provides one API for all endpoints and several integrations. The latter’s functionality is near endless, as far as Web 3.0 and digital assets/platforms are concerned, including decentralized wallets, exchanges, and NFT assets.
With it, you can expertly track your client’s portfolios across various exchanges and blockchains, leaving no stone unturned.
Quick data aggregation
With the Vezgo crypto API, you can access financial data such as transactions and asset purchase dates quickly and seamlessly.
The integration lead duration is highly optimized, ensuring quick endpoint requests and queries.
Accurate data aggregation
As a CPA, you need a way to aggregate your client’s relevant financial data in their crypto portfolios not just quickly, but accurately.
Vezgo’s crypto tax software API makes this possible, easing the workload and eliminating the potential for human error when filing tax returns.
Data protection and security
Your clients won’t have to worry about their private keys being compromised or hackers gaining access to their portfolios.
Vezgo is certified SOC 2 Type II and undergo regular security audits. Vezgo’s API is fully secured with AES-236 encryption protocols, which is the highest-grade security protocol available today.
One single API for all integrations
With Vezgo’s crypto tax API, you only need one API to access any exchange, wallet, NFT, or blockchain! This cuts your integration time by over 80%, as you no longer need to manually integrate and maintain each platform one after the other.
Build your Tax and Accounting Software with Vezgo API!
The market isn’t limited to individual investors. As time goes on and crypto regulation becomes more structured, your potential clientele will include brokerages, custody companies, crypto miners, and other stakeholders in the blockchain industry.
This is why you should get ahead of the competition and enlarge your coast by revamping your crypto accounting and taxing strategies with the Vezgo API.
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