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 a small business 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 top tax preparation software solutions on the market!
Contents:
2. What factors should be considered when selecting tax software?
3. Top tax preparation software for small business owners
4. Dealing with deadlines for important business taxes
What is tax software?
Tax software is a program built specifically to help individuals and businesses with taxation. Business tax filing is a necessity that requires not only an effort during the tax season but throughout the year. That’s why within the broader term of tax software programs, we can distinguish different functions such as tax preparation, tax filing, or tax planning. Since the last type of tax operation is usually made by accountants and financial advisors, in this article we’ll concentrate on preparation and filling.
Tax filing software vs. tax preparation software
How does tax preparation software work? The answer is simple: it does what a human being does, but quicker and with more accuracy! Tax preparation software is used to enter the relevant information about your yearly finances. 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 and other IRS documents.
Most tax software solutions offer e-filling which can assist you in the process of filling out various tax documents and tax returns. Hence, the distinction between tax preparation software and tax filing software is that of a function, but they most commonly occur together and can be seen under the general name of tax software.
What factors should be considered when selecting tax software?
Best small business tax software can accomplish a host of tasks. However, it’s what you need that matters most. So let’s look at what to consider when choosing software.
Do you need tax software?
First and foremost, tax software isn’t a must, but filing your taxes is. So what are other options? Small business owners can employ the help of a tax preparer who can help them with all the work that tax software does and much more.
Secondly, it’s not only the fact that a tax professional can take a load share from you but it’s the knowledge that they have and how it can apply to your unique tax situation. Personal advice is invaluable in complex tax situations that regular tax software simply cannot handle.
Lastly, how do you feel about doing the taxes yourself with online tax software? If even thinking about tax return data makes you run for the hills, then consider hiring a tax professional. Find out what the costs are in your area and check the necessary credentials. Having someone to take care of that side of your business can be exactly what you need.
Is this tax software the right fit for your small business?
Tax software options are vast, so to streamline the process, think about the most important functionalities for preparing and filing your small business taxes.
The best tax software for small businesses will be easy to use. Don’t underestimate that element. Having intuitive software that’s simple to navigate is a game changer. Some software asks for tax-related information in the form of interview questions, filling the documents automatically as you provide answers. Other types give you a form that you fill out yourself. See which one feels right for you.
While federal tax returns for your business can be managed by all tax software, some might not be offering state tax returns. So do check what applies to your business and what software will support it.
Every tax software program needs to be updated with all the latest deductions and tax laws. For more information on reliability it’s always good to check out reviews. Some software offers long-term storage of your tax data, deduction suggestions, or various forms of help, from blog entries, and how-tos to professional 24/7 customer support.
Top tax preparation software for small business owners
Having looked at many reasons to consider when choosing tax software for small business owners, let’s now turn to the list of top tax preparation software solutions.
🤔 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’ll 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 Sync
Synder Sync is accounting software that accurately imports all your transaction data into one source of truth. Synder prides itself on being thorough and accurate with data imports through its duplicate checking, transaction matching with time stamps, billing addresses, and many more. 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.
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Check out how Synder helps to record Canadian taxes correctly with automated categorization.
🤔 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 ✔️
About eFile
eFile is 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.
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🤔 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
About TurboTax
TurboTax is 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 its tax calculations. The company promises to pay the IRS or state penalties in case a TurboTax online filing is inaccurate.
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About TaxSlayer
TaxSlayer is professional tax preparation software with basic functionality for tax filing. It has a flexible pricing strategy with four different packages to suit your business needs. 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.
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🤔 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 options that’ll be both efficient and affordable.
😮 Solutions: FreeTaxUSA, H&R Block
About FreeTaxUSA
FreeTaxUSA is 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 also handle all of the main areas required for filing 1099 forms. Federal taxes are always done for free, and there’s no charge for tax extensions. That’s why it’s considered one of the best free tax software options available.
About H&R Block
H&R Block tax preparation software supports all kinds of forms and caters to small business owners and self-employed individuals.
This tax prep software will guide you through the tax preparation process with easy-to-understand prompts. The program notifies you of the mistake whenever you enter an item incorrectly or place something in the wrong field. If the tax filing software 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.
Dealing with deadlines for important business taxes
IRS publishes and updates the calendar with dates and forms regularly. Currently, there is a draft published by the IRS in mid-September however, it’s subject to change, so we’re still awaiting the final version.
The list of taxes and forms is long so staying on top of it can be stressful. That’s why the IRS offers a beneficial feature, specially created for small business owners. It’s an online tax calendar that sends you reminders 1 week or 2 weeks before the due date. You can subscribe to it, and reminders will be coming straight into your inbox. It’s a great idea to streamline your workflow and relieve you of remembering every date and form that needs to be filed.
Bottom line
Sometimes tax season brings lots of unnecessary drama and mayhem to the lives of SMB owners. But it can be avoided if you’re ready to take an extra step by choosing reliable resources throughout the tax year. Small business owners 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.
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This is a nice blog. The need of accounting software for tax firm is presented accurately. It has become an important part for accounting firms to automate the workflow.
The Synder Blog provides a comprehensive guide on finding the best online tax preparation software for small businesses. It offers valuable insights into various software options, their features, and how they can benefit small business owners. The blog post is well-structured and easy to follow, making it a helpful resource for anyone looking to streamline their tax preparation process.
Thank you so much for your kind words!
As a small business owner, tax season can be overwhelming. Your post has motivated me to explore tax services tailored to businesses. It’s time to streamline and optimize the process. Thanks for the advice!
We’re so pleased to hear that our post inspired you to explore specialized tax services for your business! Navigating tax season can indeed be a complex task, especially for small business owners. Best of luck, and here’s to a smoother tax season!