The tax season is around the corner and business owners need to prepare and organize their accounting and tax returns. Using the best tax preparation software for your small business can make the preparation process less easy, without any assistance from a tax professional, saving you time and money in the end.
The next important thing is to choose the right tax preparation software. Well, there’s no one quick fix for a small business when it comes to tax preparation. The best small business tax software depends on factors like your needs, how complex your tax situation is, how much you’re willing to pay for the software, and the actual forms you need to file your tax.
Here are three best small business tax preparation software to start with and how to choose the best tax prep software for your small business taxes.
3 Best Small Business Tax Preparation Software
Determining the tax preparation software for your small business can be intimidating, as well as time-consuming, especially if you’re doing tax prep yourself. In order to make the tax preparation process easier, here’s an overview of our three best tax preparation software for your small business.
TurboTax is a solid choice for small business owners with straightforward tax needs. It provides many benefits to small businesses in tax preparation. The best thing is the on-screen guidance with unlimited tax advice and review from the expert CPAs or EAs. They review errors on your tax returns before it’s filed.
TurboTax: The Details
TurboTax provides distinct software for different business types. If you’re self-employed, freelancer, or an independent contractor looking to maximize your tax credits and deductions, TurboTax Self-Employed is the best option. Regardless of your industry, the TurboTax can helps you find industry-specific tax credits and deductions.
TurboTax Business is best suited for partnerships, C-corporations, S-corporations, or LLCs with more than one member. TurboTax Business offers a head start by transferring your last year’s information into your TurboTax return, automatic imports from QuickBooks accounts and classification, personalized guidance and support, unlimited creation of W-2 and 1099-MISC forms with tax deductions for startups to get the maximum tax savings.
For businesses with complex tax situations, you can opt for TurboTax Live at a few dollars more to access a one-on-one review by a certified public accountant (CPA) or enrolled agent (EA) before tax filing – helping you to prepare your taxes with unlimited tax advice and personalized help from experts. They can search over 350 tax deductions and credits to find the tax deductions and credit you’re entitled to. And, the best part: If there’s any miscalculation which causes you to pay a penalty, they will repay the penalty plus interest!
TurboTax Self-Employed costs $90. TurboTax Business costs $159.99. TurboTax Live has four different packages: Basic at $50, Deluxe at $90, Premier at $140 and Self Employed at $170
H&R Block’s software is another solid contender for tax preparation software for small businesses. With a big network of brick-and-mortar stores, it’s a convenient, reputable tax planning service. The H&R Block software interface is easy, and you can file taxes online free as well.
H&R Block: The Details
The Self-Employed software can help you file online taxes yourself with tax experts standing by to help. Similar to TurboTax, it also helps you find industry-specific tax deductions and credits, and for startups as well.
The software also reports your business profits and losses, with guidance on industry-specific common expenses. They also provide a maximum refund you’re entitled to, along with the import of your Uber income (1099-K, 1099-MISC) directly from your Uber driver’s account.
If you want them to manage your small business taxes, H&R Block Tax Pro Go is the ideal solution without visiting an office. All you have to do is to upload your tax documents, and H&R Block matches you with a tax pro who will do the rest. The returns will be prepared in a few days and you can review, approve and pay your taxes at the ease of sitting in your home.
At a little additional fee, you can also add Tax Pro Review to your online product. With Tax Pro review, you’ll have the benefit of a tax professional reviewing your tax return to ensure the accuracy, and that you received all the entitled tax deductions and credits. Another benefit is that they can also file any tax form you need, even if it’s not included in the product you purchased.
They also have a Peace of Mind Extended Service Plan that offers tax notice support and audit representation at an additional cost. When you get notified of an audit by the IRS, an H&R Block Enrolled Agent will represent you. And the best part: If there’s any miscalculation, they will reimburse you for up to $6,000 in additional taxes owed.
H&R Block Pricing
H&R Block Self-Employed has four different packages: Free Online at $0, Deluxe Online at $29.99, Premier Online at $49.99 and Self Employed Online at $79.99. All these packages have an additional cost of $36.99 per state filed.
TaxAct is an easy, fast, and affordable way to file taxes online for both businesses and individuals. The company has a 100% satisfaction guarantee, and if there is any miscalculation in the return, they’ll refund the software cost, and pay anything related to legal or audit costs up to $100,000.
TaxAct: The Details
TaxAct has different business products targeted toward different types of business entities, including independent contractors, self-employed, freelancers can use TaxAct’s Sole Proprietor to help maximize deductions.
For specialized tax forms like Form 1065 for Partnership, Form 1120 for C-Corp and Form 11205 for S-Corp. TaxAct helps you choose the right business product to get the software and forms you need.
You just have to answer a few easy questions and TaxAct will do the rest for you. They also offer systematic guidance to maximize business deductions, and free IRS e-file for fast, accurate return filing & confirmation. Another benefit is using TaxAct for filing taxes is that you can have unlimited access to your previous year’s tax return. With personalized 24/7 support in their Answer Center and online, it’s a convenient way to file your small business taxes.
TaxAct Business has four different business products: For Sole Proprietors at $74.95, and $109.95 for Partnership, C-Corp, and S-Corp.
Things to Consider Before Selecting Your Small Business Tax Software
Well, now you know the best tax preparation software for your small business, but exactly, how do you know which one is best for your small business? Here are a few things to consider before selecting the right tax software for your business:
- Support is the major factor to consider. While reviewing the software for tac filing, look for those that provide different levels of support, like in-person consultation, phone, email, online chat, or video conferencing. If you’re a startup or need quick support from experts in case questions arise—select one with the best customer support.
- If you’re a sole proprietor or an entity not registered as a corporation, LLC, or LLP, you can choose a simple, easy to use tax preparation software option, since your tax preparation requirements are not much complex.
- If you’re not a sole proprietor, your business entity type is the main determinant in your selection of small business tax preparation software.
- Another important thing to consider is the support of relevant and essential tax forms, such as Schedule C, Schedule 1040A, or 1099 forms. Choose the software that supports all major forms as well as facilitates employees or independent contractors to upload their forms directly into the tax preparation app.
- Select one that provides digital services with all the other features. Most tax service providers offer both online and downloadable versions of their software. With an online service, you can easily share your data with others, with the easiness of up-to-date software, and it’s usually easier to get started with the software you have to download or install.
- Look for features like reviewing the tax returns accuracy, satisfaction guarantees, and audit support added in the purchased package. Are there any additional fees for these features? Can you file taxes electronically, or you have to pay for this feature?
While choosing the best tax preparation software for your small business, focus on finding the software package that has all the essential features, security, and support your business needs to make tax filing a breeze.