The biggest tax season challenge for a small business is tax preparation and filing. Most SMB owners fall into the trap of putting off taxes until the last minute, because they don’t have professional tax accounting software backing them up. This may result in serious problems with dire consequences. Poor tax planning can result in high penalties with accruing interest rates to the IRS. A lesser-discussed problem is overpaying your taxes and losing money on miscalculations.
If you want to harness the tax game and avoid losing money, employing tax preparation software for small businesses can be a game changer. You can start with something simple. First, try to make the most out of your accounting software. As your needs become more complex, you may need to advance to professional tax prep assistance.
In this article, we’ll provide you with a list of the best tax preparation software solutions on the market!
- Accounting management
- Solution: Synder Accounting
- Solutions: TurboTax, TaxSlayer
- Solutions: FreeTaxUSA, H&R Block
- Online tax preparation + IRS forms
- Solutions: Jackson Hewitt Online, eFile
What does tax preparation software do?
The answer is simple: it does what a human being does, but quicker and with more accuracy! Tax preparation software is software used to enter the relevant information about your yearly finances. There are different types of tax preparation software for small businesses.
Tax preparation software usually assists in the process of filling out various tax documents and tax returns. If you’re an individual or a small business owner and you don’t have the time or expertise to complete your own taxes, it may be the best solution.
What factors should be considered when selecting tax preparation software?
Every year people spend a lot of time and money preparing taxes. If you’re looking for ways to make it more efficient, ensure that you have the right tax preparation software. While the software doesn’t perform all the steps required for a full tax return, it can still help you calculate your total tax liability and prepare all of the necessary forms, including W2s, 1099s, and other IRS documents.
Tax preparation software has been evolving over recent years with new features that are worth looking into when considering your options.
The best tax preparation software will be easy to use, updated with all the latest deductions and tax laws, and offer helpful customer service 24/7. Here are some tips on how to choose your tax preparation software.
🤔 Tax preparation software inquiry: Accounting management
If you want your business to be blessed with financial success, you must keep your financial records in order. Human error can result in mistakes that will attract unwanted IRS scrutiny, which can potentially lead to audits, fees, and other penalties. Synchronizing your accounting software with payment platforms will help you decrease the risk of discrepancies.
😮 Solution: Synder Accounting
Synder Accounting is an accounting software that correctly imports all your transaction data into one source of truth. All taxes, fees, and shipping costs end up in the right places in your accounting system. The service is designed to help detect any unexplained discrepancies. And all of that with just a few-click setup! Data sync runs automatically in the background while you’re working on your business and increasing revenue.
Once it’s time to file, you can review what you owe to make sure the numbers look good. When all of your required statements are in the right place, closing the fiscal year becomes surprisingly gratifying.
Free trial ✔️
Demo session ✔️ – schedule a Demo now
🤔 Tax preparation software inquiry: Accessibility
Having access to your tax preparation software from anywhere might well be one of the major requirements for some business owners. When you have cloud-based software, you don’t have to download any additional applications to run operations properly. This definitely makes dealing with daily tasks easier.
😮 Solutions: TurboTax, TaxSlayer
TurboTax is a tax preparation software for professionals and business owners. It’s suited for diverse online tax filing purposes. It also works with cryptocurrency, which is quite an appealing feature for start-ups.
This Intuit tax preparation software allows you to create unlimited W-2, 1099-MISC, 1099-INT, and 1099-DIV forms. It checks your tax return against a database of over 350 deductions and credits. If you don’t want to wait for your tax refund check to arrive in the mail, you can choose to have it automatically deposited into your bank account. TurboTax also offers a guarantee on all of their tax calculations. The company promises to pay the IRS or state penalties in case a TurboTax online filing is inaccurate.
Free trial ✔️
TaxSlayer is professional tax preparation software with basic functionality for tax filing. It has a flexible pricing strategy with four different packages. Everyone gets free unlimited support via phone, email, and chat.
This online tax service provides personalized tax tips. It sends reminders that are specific to your tax situation, for example, it notifies you about additional ways to receive your refund. It also gives you access to new tools that enable faster and more efficient online tax filing. One more feature to consider is that the service provides you with an opportunity to get help from a tax professional. You’ll be able to work smarter and quicker with this tax preparation software.
Free trial ✔️
🤔 Tax preparation software inquiry: Affordability
When starting a new business or when you don’t have the budget for overpriced software solutions with a bunch of features that you don’t need (yet or at all), it’s better to look for the options that will be both efficient and affordable.
😮 Solutions: FreeTaxUSA, H&R Block
FreeTaxUSA is a tax preparation software for small businesses looking for cheap but trustworthy online tax filing services. Filing taxes for free with an IRS-approved provider does sound like a compelling offer, right?
FreeTaxUSA can ultimately deal with every state and federal tax filing form, including common credits. It’ll handle all of the main areas required for filing 1099 forms too. Federal taxes are always done for free, and there’s no charge for tax extensions. That’s why it’s considered to be one of the best free tax preparation software available.
About H&R Block
H&R Block tax preparation software supports all kinds of forms and caters to small businesses and self-employed individuals.
This tax prep software will guide you through the tax preparation process with easy to understand prompts. Whenever you enter an item incorrectly or place something in the wrong field, the software notifies you of the mistake. If the tax filing program detects any errors, it flags them for you to fix. In addition to common H&R Block’s tax services, a professional can prepare your taxes for an extra fee.
🤔 Tax preparation software inquiry: Online tax preparation + IRS forms
Whether you’re a bookkeeper, an accountant, or a small business owner, you need to know how to file your business taxes. There are a lot of online tax preparation software solutions for small businesses that provide you with the information you need to file your taxes accurately and on time. The good news is that online tax preparation software solutions make filing and paying your taxes easy and worry-free.
😮 Solutions: Jackson Hewitt Online, eFile
About Jackson Hewitt Online
Jackson Hewitt Online is big on accuracy and the level of assistance they deliver.
Their library of crucial IRS forms can all be found via the Jackson Hewitt Online site. This tax preparation software solution provides useful calculators to let you pinpoint depreciation costs. Jackson Hewitt Online also offers secure storage and access to your tax returns whenever you need them. This feature lets you go back as far as six years for no additional charge. It proves to be useful if you face an audit or feel the need to revise your previous tax reports.
Free option ✔️
eFile is an online tax preparation software focused on simpler tax liabilities. This program lets you do your tax prep online automatically, which is easier and quicker than on paper. But you can also choose to print your tax forms and mail them instead.
This tax preparation software offers live chat support, even during peak hours. When you file taxes online, you can get your tax refund via direct deposit. And you can choose to pay your eFile fees out of the tax refund you get, instead of paying by credit card.
Free trial ✔️
Sometimes tax season brings lots of unnecessary drama and mayhem to the lives of SMB owners. But the drama can be avoided if you’re ready to take an extra step for your tax planning. Small businesses can benefit significantly from using tax preparation software solutions honed to cover their tax needs. They provide the necessary tools to complete tax filing accurately and keep audits at bay.
While some online tax filing software is free, other professional tax preparation software solutions will cost a pretty penny. If you need more professional features, you’ll need to pay extra. Is this investment worth it? Count all the losses on overpaid taxes, late filing fees, and don’t forget the sleepless nights — you’ll get your answer.