Crypto tax software provider TaxBit is expanding its crypto accounting services with the acquisition of software startup Tactic, announcing the deal Tuesday.
Based on feedback from customers, TaxBit will now offer expanded crypto accounting services by incorporating Tactic’s accounting tech into its existing corporate accounting suite (CAS) offering. This will help institutional customers deal with the process of tracking crypto transactions and prices for reporting, said TaxBit CEO Austin Woodward, which should help customers close their books in days instead of months.
Starting this week, Woodward said the company will start selling to Tactic’s target market of medium to small businesses, but over the next two quarters he has plans to roll out features for larger companies that are on the path to going public.
“We’ll move really fast because we’re very much in a good position right out of the box,” he added.
Courtesy of TaxBit
Although Woodward said TaxBit had been considering expanding into the accounting realm for months prior to the implosion of FTX last year, the egregiously bad accounting that contributed to its downfall gave the company some validation.
“At the time I thought, ‘Wow, we could play an active role here in helping things like this not happen again,’” Woodward said.
In December, TaxBit laid off 15% of its employees but didn’t reveal how many employees were affected or remained at the company afterward, according to Puget Sound Business Journal. The outlet reported that some of TaxBit’s customers faced slower growth or bankruptcy last year as a major downturn hit crypto markets.
Still, Woodward said the company was not concerned about a prolonged Crypto Winter, having been founded during an existentially dire time for the industry in 2018.
“Accounting and tax have never been in the spotlight more than now,” Woodward added. “We view this as an opportunity to double down on that, not just waiting for the macro environment to return or get better but play an active part in propelling that.”
The company, which has dual headquarters in Seattle and Salt Lake City, has raised over $235 million since it was founded in 2018.
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