4 of the Best Tax-Filing Software Programs for Small Businesses
For small business owners who prefer to prepare their own taxes instead of hiring an accountant, prepackaged software for taxes are available to guide proficient and newbie tax preparers alike.
Here are five top software packages that may fit your needs.
TurboTax Business leads users through several simple questions to customize the tax documents to their business. The software has the ability to transfer your QuickBooks profit and loss data directly to the tax software. It will also transfer your data from year to year, which is good for overall comparison and data entry error-checking.
If you don’t use QuickBooks, the software provides step-by-step guidance to entering your business income and expense data. Additionally, the software walks you through all the deductible business expenses so you don’t pay more than you owe. Intuit also offers mobile and online platforms for this TurboTax Business.
For business owners who file taxes for both their business and themselves, the H&R Block at Home Premium & Business includes modules for personal and business returns. This software also includes state returns for your business at no extra cost, for an unlimited number of states. For the personal tax module, the software allows one state, and will charge $39.95 for additional states. However, if you want to electronically file your state taxes, it will cost you $19.95 for each state e-file used.
TaxACT offers three different software packages, depending on the type of business you run, whether it’s privately owned, an LLC, or corporation. All packages include personal and business modules, and federal e-file is available for one tax filing and with some states. However, TaxACT does not offer an accuracy guarantee or mobile or online platforms, and its customer service is limited, as they do not offer live chat or 24/7 service. Instructional videos are available as well as email assistance.
For the budget-minded small business owner, TaxSlayer is an online tax preparation solution for privately owned or limited liability business forms. While the premium edition includes 24/7 customer service, the tax preparer must be somewhat familiar with the deductions he takes, because the software does not guide the user through the process, nor does it ask for depreciation, vehicle tax, and other typical business deductions. However, audit support and a maximum refund and accuracy guarantees are included.
For the heavyweight Excel user, DJI Solutions offers a tax assistant that allows you to enter your data right into an IRS-approved form developed in Microsoft Excel. Forms 1040 and 1040A are available as well as twelve others, plus worksheets for calculating deductions, entering that data directly onto the form that will be filed with the IRS. Those familiar with Excel will appreciate the utilization of comparing how the worksheet entries change the overall result. Comparing different scenarios can help you make business deductions that optimize your tax returns.
Tax preparation, an unpleasant but necessary task, can be made easier with the right software package. Small business owners who choose the software for taxes package that fits their needs the best will find the disagreeable task made a bit more agreeable.