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How to Connect Sparrow Wallet to Clams: Complete Bitcoin Accounting Setup

Looking to integrate your Sparrow wallet with Bitcoin-only accounting software for seamless tax reporting? This guide walks you through connecting both single-sig and multisig Sparrow wallets to Clams, automatically syncing your transaction history and calculating accurate cost basis for Bitcoin accounting.

Why Connect Sparrow Wallet to Clams?

Sparrow is one of the best Bitcoin wallets available, and when paired with Clams' Bitcoin-only accounting software, you get:

  • Automatic transaction syncing using Extended Public Keys (Xpubs) and Descriptors
  • Privacy - your wallet data stays on your device
  • Lightning-fast setup - connect in under 2 minutes
  • No address hunting - Clams automatically derives all your addresses
  • Tax-ready reports - with accurate cost basis calculations

Before You Start

What You'll Need:

  • Sparrow Wallet installed and set up
  • Your wallet's Extended Public Key (Xpub) or Descriptor
  • Clams installed

Important: Clams only needs your Xpub/Descriptor (read-only access). Clams never needs your private keys or seed phrase.

Single-Sig Wallet Setup

Step 1: Export Your Xpub from Sparrow

  1. Open Sparrow and select your wallet
  2. Go to Settings → Keystores
  3. Right-click on the xpub/ypub/zpub value and Copy the Extended Public Key (starts with xpub, ypub, or zpub)

Sparrow single sig

Step 2: Add Xpub to Clams

  1. Open Clams and navigate to Connections → Add
  2. Select XPub
  3. Give your wallet a descriptive label (e.g., "Sparrow spending wallet")
  4. Paste your Xpub from Sparrow
  5. Choose the Address Types you are interested in (or skip to choose all)
  6. Click Save and Sync

Multisig Wallet Setup

Step 1: Export Your Multisig Descriptor

  1. In Sparrow, open your multisig wallet
  2. Go to Settings → Script Policy
  3. Right-click and copy the full Output Descriptor (includes all co-signer Xpubs)

Sparrow multi sig

Step 2: Add Descriptor to Clams

  1. Open Clams and navigate to Connections → Add
  2. Select Descriptor
  3. Give your wallet a descriptive label (e.g., "Cold Storage")
  4. Paste your Output Descriptor from Sparrow
  5. Click Save and Sync

Pro Tips for Sparrow + Clams

Once your Sparrow wallets are connected Clams will automatically:

  • Derive all addresses associated with your Xpub / Descriptor wallets
  • Scan for transaction history
  • Calculate cost basis for every transaction and for the balance as a whole
  • Display your complete transaction history
  • Automatically detect, label and account for transfers between your connected wallets

Best Practices:

  • Always verify you're copying the Xpub / Descriptor, not private keys
  • Consider using different Sparrow wallets for different purposes (spending vs savings)

Organization Tips:

  • Use descriptive wallet names in Clams that match your Sparrow setup
  • Label transactions in both Sparrow and Clams for better record-keeping
  • Set up separate wallets for business vs personal Bitcoin

Troubleshooting:

  • If transactions aren't appearing for your Xpub, make sure you are scanning for all addresses types that you know have balances.
  • For multisig, make sure you copied the full descriptor, not just one cosigner's Xpub.

Next Steps

  1. Review imported transactions for accuracy
  2. Add custom labels to improve organization
  3. Set up additional connections to capture all your Bitcoin transactions
  4. Generate tax reports when needed

Need Help?

Having trouble with your Sparrow integration? We're here to help: