I bet you don’t know the best business tax software canada, am I right? No worries. StartupBros is going to help you out. Check out our article and find out how to choose the best small business tax software canada. There are so many things you should care about when choosing small business accounting software. These certainly include how intuitive it is, it’s easy to use interface or how much time do you need to learn. And I’m pretty sure these are things that will put a smile on your face.
Have you considered starting your own business? Perhaps setting up a small business for yourself in Canada? There are a lot of things to think about when getting started. One thing that is often forgotten—until the time comes—is tax software for small business. In this article, we are going to look at tax software reviews for small business and make some recommendations to help get you started.
StudioTax
Key Features
- CRA Certified: Yes
- Encryption: TLS
- Cost: $0
Pros
- 100% free software with the option to donate
- Can be installed locally
- Can now be used on mobile devices
Cons
- Mac version does not support Québec tax returns
StudioTax is one of the oldest tax return software providers on our list, and there’s a good reason as to why Canadians are still using it to this day. One of the main reasons StudioTax is so popular among Canadians in 2021 is that it is 100% free with no strings attached.
Despite the fact that this free tax filing software doesn’t come with all the bells and whistles offered by SimpleTax, it’s an easy-to-use solution to online tax filing that we cannot recommend enough.
Internet Connection Not Necessary
One of the main benefits of using StudioTax over some of the other programs available is that you can download it locally and use it without being connected to the internet. This means that your tax return files will be safely stored on your computer (Windows and Mac), rather than on the cloud.
You can even download the iOS and Android version of the program onto your mobile device for quick and easy access to your tax return on-the-go. It truly doesn’t get any better than that, or does it?
Recently, StudioTax announced that its tax return program is certified by both CRA and Revenue Québec, a fantastic bonus for a completely free tax filing program. With all of that being said, it must be noted that the Mac version does not support Québec tax returns at this moment in time.
It is also worth mentioning that while it’s still a significant amount, you can only file up to 20 tax returns using StudioTax, so if you require more, we suggest selecting another software program from our list.
Intuit Turbotax (Formerly QuickTax)
TurboTax is a user-friendly Canadian tax software program that lets you prepare your income taxes easily and quickly. The EasyStep Interview leads you through the tax preparation process by asking questions in plain English, and tax planning is a snap because of the ability to run multiple tax scenarios, and features such as the capital gains analyzer and incorporation analyzer.
Desktop editions:
- TurboTax Standard—families, students, and simple small businesses, up to eight returns—$39.99
- TurboTax Premier—for investments and rental properties, up to 12 returns—$79.99
- TurboTax Home & Business—consultants and small business owners, up to 12 returns—$129.99
- TurboTax 20 Returns—home and business, up to 20 Returns —$139.99
- TurboTax Business Incorporated—one corporate T2 return —$249.99
Online editions:
- TurboTax Standard—$19.99 per return
- TurboTax Premier—$34.99 per return
- TurboTax Self-Employed—$59.99 per return
The online editions do not do incorporate (T2) returns.
Mobile editions:
- TurboTax for iOS—free
- TurboTax for Android—free
There is now also a TurboTax Live product called Assist & Review that lets you talk to an expert about your taxes and get a final review of your Canadian income tax return before you file for $99.99 per return, and a TurboTax live Full Service product where Intuit’s tax experts prepare and file your taxes for you.
Note that for sole proprietors all versions provide the basic T2125 form (statement of business activities) for nonincorporated businesses. For those that need it, the more expensive editions provide “expert guidance” in the form of an extended interview format for self-employment income and expenses.
Import options: TurboTax desktop will import data from QuickBooks.
TaxTron
TaxTron used to be GriffTax and is still the only fully functional user-friendly Canadian tax preparation software available in both individual (T1) and corporate (T2) versions for both the MacOS and Windows. All versions are quick, easy, and fully bilingual, using a step-by-step approach to guide you through the tax preparation and filing process.
Editions:
- TaxTron Individual—one return of any income and up to 19 additional returns with total income under $31,000 each—$12.99 for Windows, $19.99 for MacOS
- TaxTron Family—Up to five returns with total income > $31,000 each and up to 15 additional returns with total income under $31,000 each—$24.99 for Windows, $39.99 for MacOS
- TaxTron Corporate—for corporate T2 —$99.99 for Windows or MacOS, free if you have a net loss for tax purposes
- Free web-based app for Canadian T2 tax returns—the company claims that “For CCPC companies with no income/expense/asset/liability during the year with single jurisdiction the web-application has facility to file a return in five minutes”
Import options: None
GenuTax
This Canadian tax software has two things going for it. The first is that GenuTax is free—and that includes future annual updates. (The website asks that users pay by modest donation.) The second is that you can prepare and file up to 20 tax returns for the current tax year and the past tax year. Some other tax preparation software programs designed for public use allow you to do fewer returns. As is common, you work through an interview process to complete your tax return.
The downside? You can’t file a provincial return for Quebec with this software (you can still file a federal return), nor does it work for preparing corporate tax returns. A separate tax planning software, GenuTax Planner, is also available.
Cost: GenuTax Standard tax software download—pay by “modest donation”
Import options: None
SimpleTax
Key Features
- CRA Certified: Yes
- Encryption: TLS
- Cost: $0
Pros
- User-friendly tax filing software
- Completely free, no strings attached
- 100% accuracy agreement
Cons
- Not available on Android devices
If you’re looking for a completely free online tax return software, SimpleTax may just be for you. Much like TurboTax, SimpleTax offers a web version that can be used on Windows and Mac, as well as a mobile version that can be used on-the-go.
The main issue is, SimpleTax is available for iOS devices only, not Android. This is something that must be taken into consideration when choosing the right tax software for your personal needs.
Compared with the other free versions of tax return software we have tested, SimpleTax offers the most features, including partial auto-fill returns, free customer support and a convenient RRSP calculator.
Smart Search Box Included
In addition to these features, this free tax return software comes with a smart search box that makes adding things such as medical expenses and gifts to your return a quick and easy process.
When it comes to accuracy, we truly believe that SimpleTax is an online tax returning software that you can trust. If you’re not convinced, SimpleTx comes with an “100% Awesome Guarantee,” meaning that if they make a mistake and you end up paying a penalty or any extra interest, SmartTax will reimburse you.
While this tax return software is 100% free, you have the option to pay what you want after submitting your tax return to the CRA if you feel like supporting SimpleTax.
H&R Block
Key Features
- CRA Certified: Yes
- Encryption: TLS
- Cost: $0 – $29.99
Pros
- Taxes securely filed with the CRA and Revenu Québec
- Affordable plans
- Automatic return optimization
Cons
- User experience could be improved
H&R Block’s online tax return software offers everything you need to file your taxes with ease. Regardless of whether you prefer to use Mac, Windows, iOS or Android, H&R Block has you covered.
One of the best things about this tax filing software is that it is extremely affordable, meaning that regardless of your budget, you will be able to use H&R Block’s handy “do-it-yourself” service.
Of the three plans available, the most basic option is free and offers automatic return optimization, auto-fill returns (AFR) and SmartSwitch.
If you require further assistance, we highly recommend the Assistance pack available for just $19.99. With this pack, you receive unlimited tech support and customized tax tips as you create your return with ease.
If you’re willing to fork out more money, the most expensive program is available for just $29.99 and offers all of the basic and assistance features in addition to digital return storage and audit protection.
Cantax
While primarily designed as a high-end product for tax professionals, Cantax is suitable for any business that needs to process multiple T1 or corporate tax returns. Two of this Canadian tax software’s best features are the Quick Entry screen, where you can enter the data from different forms onto a single screen, and the Pathfinder, which makes it easier to move between form(s) and the return.
Editions:
- T1Plus Home Office—15 returns with single user license—$169.00
- T1Plus Home Office with EFILE—15 returns with single user license—$229.00
- T2 Pay Per File—$233.00 per return filed
- T2—$482.00 for three returns
For tax preparers, there are other editions available for processing large numbers of T1 or T2 returns. See Cantax Products.
Import options: Data from TurboTax or ProFile. CanTax also imports GIFI data from accounting software.
UFile for Windows
With this tax preparation software, you enter your income tax information using an interview interface. This Canadian tax program is capable of handling any kind of self-employment income and calculating capital gains and can be used by Quebec residents. There’s a UFileT2 version for handling corporate tax returns, and UFile also offers online income tax preparation and filing.
Editions:
- UFile 4 for Windows—4 returns with single user license—$22.99
- Online version of UFile for T1 returns—$19.99 per return (add spouse for $10.00)
- Online version of UFile for T2 returns—$153.95 per return
Import options: Data from H&R Block or TurboTax
Conclusion:
Whether you’re a freelancer, run an online business or operate a physical retail store, you have to pay tax on your income. The best way to do this is with the help of specialist small business tax software canada that can make filing taxes quickly and accurately simpler.