TaxBit: Enterprise Tax and Accounting for Digital Assets

TaxBit provides enterprise-grade tax and accounting software for the digital asset economy, processing millions of transactions for institutions, governments, and crypto platforms. Their comprehensive suite includes automated tax information reporting and accounting integration solutions, with full support for Solana and other major blockchains. The platform has raised over $230M from leading investors and is trusted by major exchanges, Big 4 accounting firms, and regulatory bodies for maintaining compliance in the evolving digital asset landscape.

What is TaxBit?

TaxBit emerged in 2018 to solve one of the most significant challenges facing digital asset adoption - regulatory compliance and accounting. Founded by CPAs, tax attorneys, and software developers, TaxBit has built a comprehensive platform that transforms complex blockchain transactions into organized, audit-ready financial records. The platform supports major blockchain networks including Solana, providing essential infrastructure for institutions looking to integrate digital assets into their operations.

TaxBit's platform consists of two core products: the Enterprise Tax Suite and the Enterprise Accounting Suite. The Tax Suite automates information reporting and compliance, handling everything from cost basis calculations to tax form generation. The Accounting Suite serves as a specialized subledger for digital assets, integrating with existing accounting systems to provide GAAP and IFRS compliant financial reporting.

How to Use TaxBit

Enterprise Tax Suite Implementation

Organizations begin by connecting their digital asset data sources to TaxBit through API integrations or CSV uploads. The platform supports over 500 cryptocurrency sources, including major Solana exchanges and protocols. Once connected, TaxBit automatically aggregates transaction data, applies appropriate tax treatments, and generates required regulatory forms like Forms 1099-B, 1099-MISC, and 1099-K.

The implementation process typically involves working with TaxBit's customer success team to configure specific reporting requirements, set up appropriate entity structures, and establish workflow processes for ongoing compliance monitoring. Organizations can customize tax lot selection methods, reporting frequencies, and other parameters to match their specific needs.

Enterprise Accounting Suite Integration

For accounting purposes, organizations integrate TaxBit with their existing Enterprise Resource Planning (ERP) systems like NetSuite, SAP, or QuickBooks. The platform serves as a specialized subledger for digital assets, translating blockchain transactions into traditional accounting entries. Users can configure custom chart of accounts mappings, set accounting policies, and establish automated reconciliation processes.

The Accounting Suite provides real-time visibility into digital asset holdings, supporting various accounting methods including FIFO, LIFO, and weighted average cost. Organizations can generate standard financial reports, track realized and unrealized gains/losses, and maintain detailed audit trails for all transactions.

Features and Capabilities

Tax Information Reporting

TaxBit's tax reporting capabilities include:

• Automated calculation of cost basis and gain/loss across multiple accounting methods
• Built-in compliance with latest regulatory guidance including the Infrastructure Bill requirements
• Digital tax form creation and delivery (Forms 1099-B, 1099-K, 1099-MISC)
• TIN matching and verification
• Information return filing with regulatory bodies
• Year-end tax packages and supporting documentation

Accounting and Financial Reporting

The accounting suite provides:

• Multi-entity support with consolidated reporting
• Integration with major ERP systems
• Customizable chart of accounts mapping
• Support for GAAP and IFRS standards
• Principal market analysis for fair value measurements
• Detailed transaction categorization and memo tracking
• Automated journal entry creation

Data Management and Security

TaxBit maintains robust security measures including:

• SOC 1 Type 2, SOC 2 Type 2, and ISO 27001 certifications
• End-to-end encryption of sensitive data
• Role-based access controls
• Comprehensive audit trails
• Automated data verification and reconciliation
• Regular security assessments and penetration testing

What Makes TaxBit Special

Regulatory Expertise and Relationships

TaxBit's founding team brings extensive experience from Big 4 accounting firms, the IRS, and major financial institutions. This expertise has helped shape their product development and establish strong relationships with regulatory bodies. The company works closely with government agencies and industry groups to stay ahead of evolving compliance requirements.

Comprehensive Integration Network

TaxBit has built one of the industry's largest integration networks, supporting over 500 cryptocurrency sources. Their platform can handle complex cross-chain transactions, including Solana's high-throughput environment, while maintaining accuracy and compliance. This broad coverage enables organizations to consolidate their digital asset operations through a single platform.

Enterprise-Grade Architecture

The platform is built to handle enterprise-scale requirements, processing millions of transactions while maintaining sub-second response times. TaxBit's architecture supports multi-entity structures, complex ownership hierarchies, and sophisticated accounting treatments. The platform's ability to scale with transaction volume while maintaining accuracy has made it a preferred choice for major institutions.

TaxBit Team

TaxBit was founded by Austin Woodward (CEO), Justin Woodward (Head of Legal), and Brandon Woodward (Head of Technology). The founding team's background spans tax law, accounting, and software development, providing a strong foundation for addressing the complex challenges of digital asset compliance.

The company has assembled a team of industry veterans including:

• Former FASB technical staff members
• Big 4 accounting firm partners
• IRS and Treasury Department officials
• Enterprise software architects
• Cryptocurrency compliance experts

Security and Audits

TaxBit maintains rigorous security standards, evidenced by their multiple independent certifications:

• SOC 1 Type 2 certification for financial reporting controls
• SOC 2 Type 2 certification for security, availability, and confidentiality
• ISO 27001 certification for information security management

The platform undergoes regular security assessments and maintains comprehensive insurance coverage. TaxBit's approach to security includes:

• Regular penetration testing and vulnerability assessments
• Encrypted data storage and transmission
• Multi-factor authentication
• Detailed access logging and monitoring
• Regular security training for all employees

Roadmap and Future Development

TaxBit continues to expand its capabilities and market presence. Key development initiatives include:

Global Expansion

The company is actively expanding its international presence, adding support for additional jurisdictions and regulatory frameworks. This includes enhanced reporting capabilities for various tax authorities and support for multiple accounting standards.

Enhanced Integration Capabilities

TaxBit is developing additional API endpoints and integration tools to support more complex use cases and automated workflows. This includes expanded support for DeFi protocols and cross-chain transactions.

Advanced Analytics and Reporting

Future releases will include enhanced analytics capabilities, providing organizations with deeper insights into their digital asset operations and compliance metrics.

Partnerships and Integrations

TaxBit has established partnerships with major players in the digital asset ecosystem including:

• Leading cryptocurrency exchanges like Gemini, Kraken, and FTX
• Enterprise technology providers including Fireblocks and Prime Trust
• Major accounting firms including Deloitte and KPMG
• Government agencies and regulatory bodies

These partnerships enhance TaxBit's ability to provide comprehensive solutions while maintaining strong industry relationships.