Managing finances is a crucial process for businesses of all sizes. But for small businesses, the task can get overwhelming as there are few resources available at their disposal. In such situations, implementing suitable tax software can be useful in many ways. These tools offer several benefits, from reducing errors in tax preparation to streamlining the tax process. Before choosing tax software for small businesses, it is important to consider a few factors.
Factors to consider when choosing tax software
Several deciding factors need to be evaluated when looking for small business tax preparation software.
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Cost
Since small businesses have limited financial resources, the price of the software is often considered as the top factor. In general, software prices start from around $89. But the pricing can vary depending on the software provider as well as the version of the software.
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Usability
If a particular software has complex navigation and features, it may not fit the needs of a small business owner. So, the ease of use of a software ensures that it simplifies a complex process like tax preparation with limited staff. The usability often takes priority over other aspects.
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Accuracy
Businesses mostly use tax software for its high-accuracy results. As compared to manual methods of tax completion, online applications can compile and function optimally to extract results with limited manpower use. The higher the accuracy, the lower the risk of technical and result-oriented errors leading to audits.
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Features
Most tax software offers a range of common features, some with certain functionalities that set them apart from others. These additional functionalities might be useful to small businesses from certain industries and sectors. So, before buying a particular tax software, it is important to know the various features it offers.
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Customer support
Nearly all top tax software offer some level of customer support. Businesses get assistance with technical issues involved in the usage of the software. In addition, some brands also provide tax advice support through financial experts through chat, email, phone, and even in-person assistance.
Popular tax software for small businesses
TurboTax
This software offers several benefits. Its Q&A format presents a series of questions in a step-by-step process that the tax filer has to answer. Based on the answers, the software automatically fills out the tax forms. In addition, it guarantees 100% accuracy. Turbo Tax has different price slabs to meet various business needs. The basic plan is available for free, with businesses required to pay a fee only when filing taxes. That said, the prices can go up $89. This plan is followed by the TurboTax Live Assisted, with prices ranging between $49 and $169. With this plan, businesses can get assistance from experts to fill the taxes. Finally, the TurboTax Live Full Service starts from around $89, with an expert filing the taxes for the business.
H&R Block
When looking for easy-to-use tax software for small business owners, H&R Block is an option worth considering. Its interface is quite simple, with easy-to-follow guidance. Another notable feature is the maximum refund guarantee, which means if the results are provided, the plan fees will be fully paid back. Besides this, the software also gives audit support guarantee, with which businesses can get free assistance in case of IRC notice or other tax notice. Also, the software ensures 100% accuracy, otherwise H&R Block refunds the business for any tax penalties or interests of up to $10,000. The company is viable across three plans, starting from $0 for the free plan, $35 for the Deluxe plan, and $89 for the Pro plan.
FreeTaxUSA
This software has been made for individuals who want to file taxes independently, are self-employed, or own small businesses. The plan starts at $0 with an additional $14.99 fee to be paid in case of filing state taxes. Extra costs are involved if additional tax expert support is required in the process. This is one of the most affordable tax software for small businesses, and it ensures a maximum refund guarantee. If the results are not met as promised, the software will refund the complete plan fees and provide coupons for free amended tax returns. In addition, the software ensures 100% accuracy in tax filing. For errors, businesses can get penalties and interest charges reimbursed by FreeTaxUSA.
TaxSlayer
This tax filing software for entrepreneurs has some cheaper plans, making it quite an affordable choice. A notable feature is the low fees involved in filing state taxes. Plus, businesses can expect one-on-one support from professional tax experts through the Ask a Tax Pro feature. Also, support is provided for IRS inquiries and audits. Like other tax software, TaxSlayer also ensures 100% accuracy in tax filing or reimbursement of internet charges or penalties in case of errors. Besides, there is a maximum refund guarantee. The prices of the plans start from $0 and can go up to $53 for premium plans and features.
TaxAct
TaxAct offers an accuracy guarantee of over $100,000. This guarantee means the software reimburses a business in case there is a state or IRS penalty or interest for calculation errors caused in the process. Regarding customer support, TaxAct offers one-on-one support from professional tax experts. This feature is available at an additional cost. The base plan is free, and prices go up to $70 for higher plans with premium features.