While cryptocurrency is rapidly moving toward mass adoption, one of the issues faced by many professionals in the space is that of adopting a new asset class and integrating it into the traditional workflow.
Ledgible is a cryptocurrency tax and accounting solution platform that aims to help corporations, financial institutions, and accounting firms with tools and services for crypto tax, accounting, and audits for crypto assets.
In an interview with Trevor English, Vice President of Marketing at Ledgible, we talked about the platform, the current market scenario, the role of institutions in mass adoption, their future roadmap, and much more.
1. What was the reason behind creating Ledgible, as a crypto tax and accounting solution for professionals?
As we’ve had conversations with tax professionals, CPAs, and accounting firms, we started to identify the many struggles these financial professionals were having with
adopting and ingesting a new asset class. While crypto flips on its head many of the conventions established in traditional finance, when it comes to tax and accounting, crypto data still has to fit into traditional workflows.
Addressing this core challenge is why we wanted to build the product we have. Ledgible makes crypto data legible for tax and accounting professionals, and in a grander sense, helps ensure the adoption of crypto by larger enterprises and institutions.
If we want to see crypto persist and continue into commonplace, we have to ensure that this new system of finance, can fit into the existing cogs of today’s highly regulated system. That’s where Ledgible comes into play, to make that process as seamless and as simple as possible.
2. Considering the current market scenario, what role do you think institutions play in the mass adoption of cryptocurrency?
While the overall crypto market is seeing declines in the latter half of 2022, we continue to see strong institutional adoption in the space. They say bear markets are for builders – and that doesn’t just mean new protocols and startups. For the 2022 bear market, that also means large banks and institutions putting the systems in place to be able to adopt and handle crypto assets right beside their traditional assets.
As institutions put these pipes in place to be able to handle crypto, we expect crypto to be as available to consumers and investment managers as stocks or bonds – at least that’s the future the institutions we work with see – and it’s the future Ledgible is helping further create.
3. What makes Ledgible stand out from other platforms in the space?
Ledgible stands out in its focus on professionals, its unmatched data integrity and security, as well as some additional functionality and integrations. Ledgible is the only solution whose core focus is on the professional tax and accounting industry. A lot of the markets we serve a function as enterprises and businesses, rather than individual taxpayers, meaning we’ve set up and designed our tool to work at this level.
This also means we’ve built our tool on the back of integrations with existing enterprise tax and accounting software, like Thomson Reuters Ultratax, Quickbooks Online, Xero, Netsuite, DrakeTax, and more.
Ledgible is also one of the few solutions that have a SOC 1 & 2 Type 2 certification, meaning that our data security is regularly independently audited. This security certification is necessary to work with some of the world’s largest banks, and since our platform is open to anyone, it also means individual filers and mom-and-pop tax preparers benefit from it as well.
4. Tell us more about how the Ledgible platform works?
On the tax side, Ledgible works in two parts. Tax preparers and accounting firms can create their account, invite clients and team members, and quickly handle crypto transactions and generate necessary tax forms.
On the client side, or the tax filer side, individual filers can either connect their account to a CPA they’re working with, or they can go forward filing their return directly with a tool like TurboTax. This seamless integration allows for easy filing with Tax professionals, and in the US, over 50% of individual tax returns are filed with tax professionals.
On the accounting side, Ledgible functions like a traditional Saas software platform. Companies, individuals, and enterprises can onboard their crypto transactions from wallets and exchanges into the tool through API connects, and Ledgible functions as a sub-ledger to general ledgers accounting systems, like Quickbooks Online, Xero, Netsuite, and more.
5. Are there any partnerships or collaborations we can look forward to?
The backbone of Ledgible’s value proposition is our partnerships with existing financial companies. We allow crypto to be ingested into businesses’ and professionals’ existing software tools. That means handling crypto without learning confusing new workflows or new tools. On the tax side, Ledgible is partnered and integrates with the two leading professional tax software companies, Thomson Reuters and Wolters Kluwer.
On the accounting side, Ledgible is partnered and integrates with the leading accounting ledger software on the market. We also have leading industry partnerships as well, like with Fidelity Investment Services (FIS), the world’s largest Fintech, which enables hedge funds and banks to be able to handle and trade in crypto.
6. How can various users choose the right tool in the Ledgible Product Suite?
Easy! For tax professionals wanting to manage clients and file returns, Ledgible Tax Pro is your product of choice. For clients of tax professionals and individual tax filers, Ledgible Tax Consumer is the product for you.
For any other accounting use case, then Ledgible Accounting will be the perfect fit for your crypto tax and accounting needs.
7. What efforts are you taking to make sure that new users can easily adopt and learn more about the cryptocurrency space?
The beauty of Ledgible is that we make crypto legible, in all shapes sizes, and forms. In simple terms, this means the software automatically takes the confusing nature out of crypto transactions, ensuring the adoption and handling of crypto data are as simple as possible.
We like to say that Ledgible aggregates, normalizes, and makes crypto data Ledgible – all with the simple click of a button. No hassling with endless spreadsheets or dealing with confusing data logs, just connect everything to Ledgible and you’re good to go.
8. Can you tell us more about what lies ahead on the Ledgible roadmap?
Ledgible is expanding our functionalities to new business lines and regions! One of our newest products, Crypto Tax Information Reporting, allows exchanges, institutions, and enterprises that custody crypto to be able to generate 1099s in the US to send to tax filers. This addresses the need to process crypto tax information set in place by the latest legislation around crypto in the US.
We’re also always expanding our tax functionalities to keep them on top of the market, and we’re exploring partnerships with leading software and technology brands to further the ease of use for crypto tax reporting data. It’s an exciting time to be building the leading professional crypto tax and accounting software!
For more information on Ledgible, please check out their official website and follow their Twitter Page.
Disclaimer: This is a paid post and should not be treated as news/advice.
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