Does CoinTracker Really Cover Everything? A Breakdown of Pros and Cons
Cryptocurrency investors often wonder whether using tax software like CoinTracker is enough to stay compliant with the CRA. While CoinTracker automates tax tracking, does it truly cover all aspects of crypto taxation?
This comparison will outline the pros and cons of CoinTracker vs. hiring a professional accountant, helping you decide which option is best for your needs.
CoinTracker: The Pros and the Hidden Drawbacks
Pros:
- Automatically imports transactions from exchanges and wallets.
- Generates basic tax reports for personal filing.
- Offers a simple interface for beginner investors.
Cons:
- Cannot verify the accuracy of imported transactions.
- No audit support—if the CRA audits you, you must handle it alone.
- Struggles with DeFi, NFTs, and complex crypto activities.
- Does not provide personalized tax-saving strategies.
- If the platform shuts down, tax records could be lost.
While CoinTracker is suitable for beginners with basic transactions, it lacks professional oversight, compliance assurance, and financial planning.
Tax Partners: Why Professional Tax Services Offer More Protection
What Tax Partners Offers That CoinTracker Cannot:
- Personalized tax strategies to minimize tax liabilities.
- Full audit representation and CRA defense.
- Manual transaction verification to prevent errors.
- Secure record-keeping for six years (as required by the CRA).
- Expert financial planning beyond tax filing.
By hiring an accountant, you receive tailored financial solutions, not just tax calculations.
Conclusion: Which One Should You Choose?
If you want basic tax automation, CoinTracker may work. However, if you need compliance, audit protection, and tax efficiency, a professional accountant is the superior choice.
For reliable crypto tax services, Tax Partners is ready to help. Contact us today.
This article is written for educational purposes.
Should you have any inquiries, please do not hesitate to contact us at (905) 836-8755, via email at info@taxpartners.ca, or by visiting our website at www.taxpartners.ca.
Tax Partners has been operational since 1981 and is recognized as one of the leading tax and accounting firms in North America. Contact us today for a FREE initial consultation appointment.