ZenLedger Review

Reading positive user ZenLedger reviews may tempt you to purchase its paid plan immediately. It's probably due to this crypto tax calculator's user-friendliness, responsive customer support, or integrations with popular exchanges like Binance and Bybit.

However, it's always important to weigh these benefits against potential limitations and consider your specific needs before making a decision.

That's why I thoroughly explored ZenLedger pricing, features, limitations, user feedback, and comparison to similar platforms like Binance Tax and Koinly to provide you with a comprehensive analysis of this platform.

Verdict at a glance: ZenLedger offers a user-friendly approach to crypto tax compliance, automating transaction imports, calculations, and form generation. However, international users and those with complex crypto portfolios may encounter limitations.

What is ZenLedger?

ZenLedger is a cryptocurrency tax software designed to simplify the process of tracking, calculating, and reporting cryptocurrency transactions. People may confuse this with the hardware wallet “Ledger” or type “Zen Ledger”, but the correct term is “ZenLedger”, and it has nothing to do with the wallet.

So, how does ZenLedger work? First, you connect the application with your exchanges or wallets; then, the tool automatically calculates cost basis, fair market value, and gains/losses for your transaction history. I think one standout feature that differentiates ZenLedger from other similar platforms is its downloadable auto-generated tax report, which ensures accuracy and cuts the need to input calculations into the forms manually.

Talking about the platform’s history, this tax software was built in 2017 by industry veterans in technology, finance, and accounting. In fact, the CEO of ZenLedger, Pat Larsen, was an Amazon business manager. Meanwhile, the CTO, Daniel Escobar, had worked with Bitpay as Head of Enterprise Onboarding and Engineering Services, where he worked closely with top crypto exchanges, blockchains, non-fungible tokens (NFTs), and governments across the USA.

Since the beginning, ZenLedger’s mission has been to provide crypto traders and tax professionals with a user-friendly crypto tax platform for investments, trading, and fund operations.

At the time of writing this ZenLedger review, this platform has helped more than 100,000 customers with over $50 billion in holdings tracked. So, has this company accomplished its mission? Let’s find out if ZenLedger delivers on its promise of simplifying crypto taxes by discussing the features, drawbacks, and pricing plans below.

ZenLedger Review: PROS

In this part of my ZenLedger review, let's explore the key advantages that may make this platform an attractive option for you.

ZenLedger's Commitment to Security

ZenLedger mentions that it prioritizes information security and adheres to the Association of International Certified Professional Accountants (AICPA) Service Organization Control Type 2 (SOC 2) standard. SOC 2 provides a system for overseeing and securing customer data in cloud environments.^[1] With that assurance, ZenLedger hopes that users trust the platform to handle their sensitive financial information with the utmost care.

All of ZenLedger’s services are hosted with Amazon Web Services (AWS) | Google Cloud Platform (GCP), which claims to have a robust security program with multiple certifications. ZenLedger’s security team also performs regular vulnerability scanning and quarterly access reviews of all members with access to sensitive systems to identify and mitigate potential security risks.

Additionally, ZenLedger actively engages with the security community by offering a bounty program for responsible vulnerability disclosure. Besides building a collaborative environment, this approach helps identify and address potential security issues.

As it works with several platforms, ZenLedger undergoes a risk assessment at least once per year to mitigate potential threats, including considerations for fraud. That said, if you require more security, you can set up a two-factor authentication (2FA). ZenLedger gives you three options to authenticate your identity: email address, text message, or authenticator app. The recommended method is the last one, as the developers think it's the most secure method.

Easy-to-Use Interface

Another area in which ZenLedger takes pride is the user-friendly interface. It is designed to make using the platform easy for users of all levels.

I believe everyone appreciates an easy-to-use interface. Once you connect your exchange or wallet, ZenLedger automatically categorizes your transactions and lists them in the transaction history.

Then, you should see the [Dashboard] tab, which displays a general overview of your account's current status, including your crypto taxes and information about your import history.

That said, I noticed that ZenLedger doesn’t have an interactive chart where you can hover over to see detailed transaction information at a glance. Meanwhile, other competitors like CoinTracking, Koinly, and Blockpit offer this functionality, which I think is helpful to users who want to analyze their portfolio performance in more detail.

Instead, ZenLedger’s dashboard has a [Today’s Markets] section that shows the current prices of three major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and BNB (Binance Coin), along with the line charts for each cryptocurrency.

The provided data might be useful for users who frequently transact with these specific digital assets. However, it could be considered unnecessary for those who don't interact with these cryptocurrencies. In such cases, the space could be used for more relevant information or features.

Also, while ZenLedger automatically imports transactions from your connected wallet or exchange, there may be instances where you need to recategorize or add them manually to get an accurate tax report. For anyone wondering, you can upload a CSV file or fill in the form to manually add a transaction.

One aspect worth highlighting in this ZenLedger review is its clear and organized transaction form. Instead of having a long list of transaction types, it has a [Type] field with categories and [Sub Type] for more specific options.

For example, if you choose [NFTs] in the [Type] box, you can select [Send], [Receive], or [NFT Mint] in the [Sub Type] field.

In addition, I’d like to appreciate ZenLedger’s native ERC-721 NFT tax support that helps people calculate their non-fungible token tax liability more accurately. NFTs are a new and complex area of finance, making it tough to accurately predict how much money they'll bring in.^[2] However, with this integration, the platform helps identify the cost basis and any proceeds from resales, as well as newly minted NFTs and any profits generated from selling this mint.

At the time of writing this ZenLedger review, the team says that it plans to add support for ERC1155 and NFTs on other blockchains soon.

To see all the crypto you’ve imported into the platform, visit the [Holdings] tab. It breaks down the amount you hold and the token’s current value on each exchange or wallet.

Once you’re ready to view and download tax forms, navigate to the [Tax] menu. Here, you can see your total proceeds, cost basis, and capital gains, as well as review your taxable income. The software also displays a [Probable Missing Sources] notification if it detects an incorrect wallet or exchange balance, prompting you to resolve the issues.

On this page, you can also view all your tax details before downloading the forms to ensure the information is correct.

There’s also a unique Zen Ledger product feature called Grand Unified Accounting (GUA), an Excel spreadsheet that provides a detailed summary of your transactions and tax liability. It's calculated based on your uploaded transaction history and the cost basis method you've chosen.

For those seeking to minimize their tax liability, click the [Tax Loss Harvesting]. It offers automatic analysis of your trade history and a list of savings opportunities to take advantage of (coins you can sell at a loss) before the annual December 31st deadline.

Various Platform Integrations

ZenLedger claims to support more crypto exchanges, coins, wallets, blockchains, fiat currencies, and DeFi & NFT protocols than the competitors.

At the moment of writing this ZenLedger review, it covers +400 exchanges, +50 blockchains, +100 DeFi & NFT protocols, and +7,000 token types.‍ This crypto tax calculator also enables users to import any wallet using its public address so that users can track a wider range of crypto wallets.

From these numbers, I see that it doesn’t rank number one regarding the number of supported integrations. Another competitor, CoinTracker, for example, supports 500+ exchanges & wallets, NFTs, 10,000+ cryptocurrencies, and 20,000+ DeFi smart contracts. Meanwhile, if we talk about ZenLedger VS CoinLedger, CoinLedger comes first with its support for over 10,000 assets.

Although it doesn’t fully deliver on its promise, some user ZenLedger reviews praise its platform support, especially its ability to automate tax calculations for decentralized finance (DeFi) platforms like PancakeSwap, SushiSwap, and Uniswap.

If you primarily trade on centralized exchanges like Bybit, Binance, and Coinbase, DeFi integration may not be as critical. However, for those who are deeply involved in decentralized platforms, it's worth noting that many crypto tax applications still have room for improvement regarding this area, and ZenLedger is one of the best options.

Besides exchange and wallet integrations, ZenLedger works with several third parties to provide additional features and services to users.

One notable collaboration is with april, an AI-powered financial technology company focusing on modernizing taxes. It acts as an authorized Internal Revenue Service (IRS) e-file provider and offers software to help you self-prepare and e-file your return. The result of this partnership is the launch of the first end-to-end tax-filling experience in the crypto industry.

With april’s AI-powered features like Optical Character Recognition (OCR) form capture, you can simplify the data entry process for common forms like W-2 and previous years’ Form 1040 because the software can automatically extract relevant information from these documents, saving you time and effort.

The integration with april also enables ZenLedger to auto-generate various forms, including:

• IRS Schedule 1 for a crypto income report;
• IRS Schedule D for capital gains and losses;
• IRS Form 8949 for sales and other dispositions.

Note that you’re responsible for ensuring the accuracy and completeness of all information you provide to the platform. The filer doesn’t offer professional tax or financial advice.

"Still, does april guarantee the accuracy of your return?", you might ask. If it makes a mistake in your tax return that leads to a larger refund or smaller tax liability, april mentions that it refunds the fees and helps you amend your return for free. It also reimburses up to $10,000 for IRS penalties and interest resulting from the software errors.

However, it will not cover the fees caused by incorrectly submitted information or changes in the tax law. If your personal situation is complex or you need personalized advice, it's recommended to consult a qualified professional.

Other integrations worth highlighting in this ZenLedger review are TurboTax and TaxAct. Both are popular software platforms that can further simplify the tax filing process for ZenLedger users. You can file your taxes for your entire portfolio, including the crypto holdings, in one place – no need to manually input data.

Responsive Customer Service

If you go to TrustPilot, you might notice that the majority of five-star user ZenLedger reviews talk about its helpful customer support. The support team is responsive and has made all the difference in working through some tracking issues the users have had.

ZenLedger prioritizes live chat support with friendly representatives available to answer your questions during business hours, typically responding within 10 minutes. In addition, if your inquiry is not urgent, you can also send an email.

One more thing worth mentioning in this ZenLedger review is its scheduled support calls, including a free 15-minute option or paid 30 and 60-minute sessions. This would be useful for people who need more in-depth assistance. These calls even allow for screen sharing to ensure a smooth resolution.

Still, if you want to figure out the issues yourself, you can check its help center by clicking the chat button in the bottom right corner. Then, select a topic relevant to your issue or type your question on the search bar.

Get Help From a Tax Professional

Are you still confused about using the tool even after asking the support team or simply looking for a quick solution for your crypto tax calculation? Consider seeking professional assistance by navigating to the [Tax Pro] menu on your dashboard. From there, connect with trusted professionals or attorneys who can prepare your crypto tax forms.

If you already have a certified public accountant (CPA), they can work with you on your crypto taxes directly in your ZenLedger account. Simply visit the [Tax Pro] page and press [Invite Your Tax Pro].

CPAs can also use ZenLedger to manage their clients’ crypto transaction history and tax forms. See and audit their buy, sell, trade, and transfer history in a single dashboard.

Did you know?

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ZenLedger Review: CONS

The application offers a range of features to simplify crypto tax reporting. Yet, it's essential to recognize its limitations. In this section of my ZenLedger review, I'll discuss the potential drawbacks and areas where the platform could improve.

US-Focused Features

While ZenLedger can calculate potential tax liabilities for users in various jurisdictions, its primary focus and direct support are tailored for US residents.

One noticeable example is that the platform generates forms specifically designed for the IRS, such as Schedule D and Form 8949. While these forms can be a helpful starting point for users in other countries, it's important to note that they may not directly align with the specific tax requirements of other jurisdictions.

Some user ZenLedger reviews emphasize this explicit US-only support by mentioning that most exchanges they’ve used outside the US aren’t supported. They have to manually submit the transactions, which can be time-consuming.

Therefore, while ZenLedger can provide valuable insights and calculations, users outside the US may need to consult with local tax professionals or use additional tools to fully comply with their respective tax obligations.

Limited Features on The Free Plan

Creating a ZenLedger account is free, but the free plan can only handle up to 25 transactions, which is limiting compared to some other competitors. For example, CoinTracking’s free plan allows 200 transactions, while Koinly can support up to 10,000 transactions for free.

Moreover, the ZenLedger free plan doesn’t offer the full suite of features needed for complex crypto tax calculations. Users on this plan might find limitations to accurately account for advanced trading activities like DeFi interactions, staking rewards, and margin trading.

The good news is that you won’t need to pay if you have less than 25 total transactions on your ZenLedger account (I’ll discuss this in detail in the next section about ZenLedger pricing structure).

Persistent Technical Difficulties

Many user ZenLedger reviews experienced technical difficulties with the platform, including slow performance, frequent lock-ups, and issues with wallet import. For example, updating holdings and overall portfolio performance took a long time after they submitted transactions or imported new wallets or exchanges.

Some users also experienced repeated failures in importing their transaction data from CSV files.

Frustrated by these persistent problems, many users were forced to manually provide data to their accountant, incurring additional costs. As a result, due to the loss of money some people have noted they will not continue using ZenLedger.

ZenLedger Pricing Plans

Now, what kind of ZenLedger review would this be if I didn't mention ZenLedger's pricing structure? Understanding the cost-benefit analysis is crucial when considering any software solution.

Once you import your transactions, ZenLedger analyzes your trading activity to determine the most suitable pricing plan. If you have fewer than 25 transactions in a year, you can utilize the platform for free. For more complex tax situations, you're presented with pricing options based on the number of transactions and total asset value.

Similar to other crypto calculators, ZenLedger's pricing structure is tiered, from $0 to $999 per year. The cheapest subscription comes at $49 per year and covers all detailed reports, premium support, and up to 100 transactions. Meanwhile, those who want to unlock unlimited transactions and a dedicated customer service agent can choose the highest tier for $999.

The good news is that all plans include:

• Audit report;
• Tax Pro access;
• TurboTax integration;
• HIFO (Highest-In, First-Out)/FIFO (First-In, First-Out)/LIFO (Last-In, First-Out);
• Tax loss harvesting;
• Unlimited exchanges.

This variety allows users to optimize their tax strategies based on their specific needs and market conditions.

All plans also provide a one-year refund policy, which is quite generous. However, if you request a refund after downloading your tax forms or CSV files, ZenLedger has the right to refuse or only issue a partial refund.

Do you think that the prices are quite pricey? In such a case, I recommend you find a ZenLedger promo code on coupon websites or use a browser extension to find potential ZenLedger discount codes.

If you want to save time and enjoy professional assistance, consider checking the [Professional crypto tax plans]. This option starts at $275 for a 60-minute consultation to $5,200 per two years to have your tax return fully prepared by a trusted professional. For [Tax Professional  Prepared Plans], ZenLedger offers a 14-day refund policy.

Those interested in subscribing to one of the ZenLedger pricing plans can pay using debit or credit cards from Visa, Mastercard, American Express, and JCB. It also accepts crypto payments via Bitpay, a cryptocurrency payment service provider.

How to Use ZenLedger?

I've explored the pros and cons of ZenLedger and its pricing structure in the previous sections of this ZenLedger review. If you want to use this platform as your go-to crypto tax calculator, let's see how to actually use it to simplify your crypto tax journey.

How to Create a ZenLedger Account?

In this guide, I'll walk you through the step-by-step process of setting up your account and importing transactions.

Step 1: Go to ZenLedger’s official website and press [Sign Up] in the top right corner.

Step 2: Type in your email address and create a password. Ensure that the password is strong and secure, combining uppercase and lowercase letters, numbers, and special characters. After that, click the [Get Started] button. Alternatively, connect with a Google account, Coinbase Wallet, or MetaMask. I used my Google account for a hassle-free process.

Step 3: Select which type of user you are – an individual who fills taxes yourself or a tax pro who fills taxes for clients. I chose [Individual] and clicked [Next].

Step 4: Pick your home country and timezone, then click [Next].

Step 5: Choose your base currency to determine the rules for the tax calculation. Then, hit the [Add My First Account] button.

That’s it! You should be redirected to a page where you can import your transaction data. Integrating with an exchange or wallet is most likely the easiest option, as you only need to copy and paste read-only access API keys to import transactions. If you need to upload transactions manually, follow the steps in the next guide.

How to Add a Transaction Manually?

While ZenLedger provides options to upload a CSV file or connect with your exchange or wallet to import data automatically, it's also possible to do it manually. If you only have a few transactions, this method is a lot more efficient.

Follow these step-by-step instructions to create a manual transaction:

Step 1: Navigate to the [Import] tab at the top of your account.

Step 2: Select [Add a Manual Transaction] below the search bar.

Step 3: You should see an [Add Transaction] form where you can select the type of transaction you add and fill in the other details required. If you choose [Incoming], [Outgoing], or [NFTs] as the transaction type, a drop-down menu appears that allows you to further specify the type of transaction you add.

By following these simple steps, you can effectively add manual transactions to your ZenLedger account, ensuring accurate tax calculations and reporting.

ZenLedger Alternatives

In this part of my ZenLedger review, I'll compare ZenLedger alternatives, such as Binance Tax and CoinLedger, so that you can make an informed decision about the best crypto tax software for your needs.

ZenLedger VS Binance Tax

ZenLedger and other similar platforms often charge fees based on the number of transactions on your report. Meanwhile, Binance offers an advanced tax tool at no additional cost. No need to pay or find a discount code like a ZenLedger promo code to save money. Its system supports up to 100,000 reported transactions with detailed information, including spot trades, crypto donations, and blockchain fork rewards.

Moreover, Binance Tax offers three types of transaction reports: capital gains, income gains, and transaction reports, with frequently used cost basis methods, such as FIFO, LIFO, and Average Cost Basis.

Compared to ZenLedger, one limitation of using Binance Tax is the lack of integrations. Your transactions are automatically imported from your Binance account, so it may not support other wallets and exchanges. This might be helpful for Binance users but not for those who use multiple platforms.

Moreover, Binance Tax only offers country-specific tax rules in France and Canada. Users in other jurisdictions can only apply generic tax rules and may need a professional to interpret and apply the laws correctly.

ZenLedger VS CoinLedger

With similarly named platforms and offering similar crypto tax calculation services, how does ZenLedger VS CoinLedger compare? In terms of numbers, I've mentioned that +7,000 token types on ZenLedger are fewer than +10,000 provided assets on CoinLedger.

Moreover, CoinLedger's free plan stands out with unlimited transactions and capabilities for DeFi, NFTs, and margin trading. This provides a significant advantage for portfolio tracking over ZenLedger's free plan, which only has 25 transactions.

When comparing ZenLedger VS CoinLedger, you should also check the supported countries. CoinLedger covers country-specific tax forms for taxpayers in the US, Canada, and Australia. Although it may still not be suitable for international users, it offers a broader scope than ZenLedger, which mostly focuses its features on the US.

ZenLedger VS Koinly

Many people may search for a comparison of ZenLedger VS CoinLedger, but I think you should also take a look at Koinly.

Compared to ZenLedger and CoinLedger, Koinly offers support for more countries. It has country-specific tax forms for the UK, US, Australia, Canada, Sweden, France, Finland, Denmark, and Switzerland.

Although Koinly doesn’t provide unlimited transactions like CoinLedger, its around 10,000 transactions on the free plan should be enough to let users explore the features before committing to the paid package. Koinly also allows a tax overview based on the imported transaction history on the free plan, which helps users make informed decisions.

Compared to Koinly, ZenLedger stands out for its seamless integration with april, which allows users to auto-generate the tax data entry process.

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Conclusions

That's pretty much all I have to say in this ZenLedger review. The platform can be a user-friendly solution for individuals and businesses navigating the complexities of cryptocurrency taxation. It has automated transaction import for various exchanges or wallets like Binance and Ledger, tax calculation, and form auto-generation capabilities.

However, it's always wise to consider a platform's limitations when choosing a crypto tax solution. ZenLedger primarily focuses its services on US users, which may not be ideal for international users. Additionally, you should be aware of its limiting free and basic plans, as well as repeatedly unsatisfied user ZenLedger reviews about its technical performance.

If you're considering this application, keep an eye out for a ZenLedger promo code to save on your subscription. It's also recommended to carefully evaluate your specific needs and explore other options to find the best fit for your crypto tax requirements. Read my reviews on Koinly or CoinTracking for further details about the competitors.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. R. Sabillon., J. R. B. Higuera., J. Cano., et al..: 'Assessing the Effectiveness of Cyber Domain Controls When Conducting Cybersecurity Audits: Insights from Higher Education Institutions in Canada';

2. D. Jayasuriya., A. Sims.: 'Not So New Kid on the Block: Accounting and Valuation Aspects of Non-Fungible Tokens (NFTs)'.