Are you looking for tax filing software for your small business? Or just want to know more about the best tax filing software for small business? This article will guide you to find out more about best small business tax software.
Looking for the best business tax filing software? Or perhaps you’re looking for the best tax filing software for small business? Whatever it is, if you’re reading this blog then chances are you’re looking to learn more about business tax filing software or perhaps even need to file your own taxes online. Whatever the case may be, I hope this post helps you find what you’re looking for.
Intuit TurboTax
Offering packages for small business owners who want to file their own taxes or get help from a CPA over the internet, Intuit’s TurboTax is the overall best tax software for small businesses, because it gives its users the tools they need to file properly.
While it costs slightly more than similar software in this category, TurboTax’s features and excellent customer service make it the best online tax filing solution. For instance, business owners using the highest-tier service can search for industry-specific deductions, and the software manages employee tax forms.
TurboTax is available for download or online use, and it is compatible with mobile devices, so you can check your return status when you’re on the go. Should you be hit with an audit, TurboTax offers specialized support to make the process less painful.
H&R Block
H&R Block is the cheapest federal tax filing solution for self-employed folks. You can import previous returns from other tax preparers like TurboTax, TaxAct and Credit Karma. Though it offers several plans, freelancers and entrepreneurs will be best served with the company’s Self-Employed Online package, which helps you find business deductions, write off startup costs, and fill out forms like a Schedule C.
Unlike some of its competitors, H&R Block discloses its prices upfront. If you want a tax professional to check and sign your return, however, you need to select the highest tier.
TaxAct
Quick facts
- Generally less expensive than similar TurboTax and H&R Block options. (And NerdWallet users can save 25% on federal and state filing costs.)
- New human-support options available at an extra cost.
- Free version has a fee for state returns.
TaxAct is less well-known among tax software providers, but it offers quality online software that generally costs far less than TurboTax or H&R Block. It may not be as fancy in some ways, but you can get on-demand, on-screen access to a tax pro like the other guys offer, and the data-entry process is similar to most of the competition. And TaxAct’s prices are hard to ignore.
FreeTaxUSA
FreeTaxUSA’s appeal is obvious from its name alone: with FreeTaxUSA, you can file your federal taxes for free, and a state return costs just $14.99. The Deluxe upgrade adds a few features, like amended returns and priority support, for $6.99.
And the additional features you get for exactly zero dollars aren’t half bad either. For instance, the software lets you integrate previous tax return information, offers email-based customer support, and accounts for over 350 credits and deductions. But since the software is free, you’re still looking at fewer benefits than you’d get with Liberty Tax or H&R Block. As a result, FreeTaxUSA works best for freelancers and sole proprietors.
Drake Tax
Touting its ability to “speed you through every step of preparing a return,” Drake Tax allows tax professionals to move data between federal, state and city tax returns, or to override those features when needed. The program’s tools help tax professionals plan and analyze a client’s taxes, using a dedicated built-in planner and year-to-year comparison. Drake Tax also helps you create a version of your clients’ returns for archiving to make future tax decisions easier.
Pricing
Online tax software vendors offer several plans with tiered pricing. Each higher tier offers more features with a higher price tag as a result. When choosing which tax software solution is right for you, compare each vendor’s price and weigh it against the features your small business needs. The more advanced the features, the higher the price. Specifically, you can expect to find services that range from a free option up to $120.
If you’re looking for free or very inexpensive tax software, temper your expectations. Many such tax software solutions cut corners or hold back on essential features like state tax filing or some of the more complex tax forms that come with running a small business. These solutions may be effective at simply filing your taxes, and if that’s enough, that’s great news. Otherwise, you want to avoid choosing a filing software simply because of its price.
Key takeaway: Pricing will vary, depending on the service and the complexity of your return.
Features
When choosing a tax software program that meets your small business’s needs, pay close attention to the features it offers. The following are some of the main features you should consider when hunting for your company’s online tax software solution:
Ease of Use
Regardless of how many features your company intends to take advantage of, if you can’t easily navigate and interact with an online tax solution, you won’t complete your tax return on time.
Most online tax systems are intuitive once you get used to the user interface, but it never hurts to take advantage of free trials before you buy. If the solution’s website doesn’t immediately advertise a free trial, ask for one.
If a free trial isn’t available, that should sound alarm bells in your head. The U.S. tax code is already confusing without an unintuitive online tax solution adding to the complexity.
Filing and Disbursement Options
Filing your small business’s taxes can sometimes require multiple forms, depending on the type of income you received over the year. It’s imperative, then, that any tax software program you choose supports the types of forms you need to file. Many tax software solutions list the forms they support on their websites.
You should also consider state taxes, which must be filed at the same time as your federal taxes. Make sure the vendor you select helps you file taxes in your state, but keep in mind that this will likely cost extra.
Decide how you want to receive your tax refund. Some online tax software solutions offer numerous ways to get your money to you, including direct deposit, a deposit to your PayPal account, or a physical check. Some programs only provide refunds in unconventional ways like gift cards and prefilled debit cards. If that is too restrictive, choose another program.
Deductions and Options
There are countless deductions and credits nestled deep within the U.S. tax code, and finding all of the ones that apply to your small business can be challenging. A good online tax software solution maintains a database of credits and deductions to compare your tax filing against. Most companies have a built-in accuracy check and offer an accuracy guarantee. Speak with a company representative to find out how the tax software utilizes a database to find deductions and credits.
Hardware Compatibility
Make sure the online tax solution you’re considering will work on whatever device you intend to use to file your taxes. For instance, if you’re a PC user, it won’t help you if the application only works on Apple’s web browser, Safari. If you intend to use a mobile device, you want to make sure the app can be downloaded from the applicable app store. The more flexible a tax solution is with its supported platforms, the better it is for you as a user.
Professional Help
Some online tax software vendors offer their users access to professional help from in-house CPAs or other tax professionals to check your business’s return. This check can be a once-over just before final submission, while other times, you have access to a professional on-demand to help you through the entire process. (However, if this option is offered, check if this is included in the price of the software or if it’s offered as a separate add-on that carries an extra fee.)
Key takeaway: When evaluating the best online tax solution for your business, weigh your small business’s needs against what a vendor offers at each price point. Take advantage of free trials, and use the opportunity to evaluate how easy the program is to use, what the options are for filing your taxes and getting a refund, how the software pinpoints deductions and credits, and how compatible the software is with your current hardware.
TaxSlayer
Quick facts
- Prices are based on level of support rather than level of functionality.
- A bargain compared with bigger-name competitors.
- Fewer real-time support options — especially face-to-face ones — than some competitors offer.
TaxSlayer’s pricing model sets it apart: The company charges according to the level of support you want, rather than according to a software package’s capabilities. In other words, the cheapest paid package handles all the same tax situations and forms that the most expensive package handles — what changes is how much help you can get. Translation: If you’re a confident tax filer and don’t need a lot of support, you could save a lot of money with TaxSlayer.
Xero
Award-winning online accounting software designed for small business owners and accountants. Available on any computer or mobile device with an internet connection. Business finances and cashflow are updated in real time. Imports transactions from bank accounts. Unlimited user logins. Integrates with over 1,000 3rd-party business applications. Supports multiple currencies. Data is accessible through a single ledger, allowing accountants and clients to collaborate around finances.
Best For
All small and medium sized businesses and accounting & bookkeeping practices.
Xero Pricing Overview
Xero pricing starts at $5.50 per month. They do not have a free version. Xero offers a free trial.See additional pricing details below.
Growing: $16/month Established: $31/month
Conclusion:
It is really hard to find the best small business tax software to file business taxes. Unfortunately, the IRS does not give recommendations on the best tax filing software for small businesses. One of the biggest challenges in finding small business accounting software is that it is hard to know what is the best for your company. There are many things to think about when deciding on a best tax filing software such as features, price and customer service.