Tax season is a pretty hectic time of the year for accountants and for small business owners who are responsible for planning and reporting complex and burdensome income tax. This is the reason why a lot of business owners resort to hiring an accountant for preparing and filing their business taxes.
This helps in saving time and reducing their workload as it reduces one out of the many crucial responsibilities of a business owner.
However, hiring an accountant may not be a very feasible solution for a small business which is why recently various small business tax software has come on the market to get you off the hook.
We reviewed and lined up the top 7 best free and paid tax software for small businesses with pros and cons.
Contents
Best Tax Software for Small Business: Free & Paid
1. H&R Block
H&R is a freemium tax software and the market leader in the online tax service market. It has been in the market since 1955 and still continues to stand out among its other competitors.
H&R has millions of satisfied customers and more than 23 million tax returns for small businesses. They promise to provide an excellent user experience and cover a wide range of tax situations like charitable donations or Health Savings Accounts (HSA).
Pros:
- Easy-to-use interface with good graphics
- Access to the past six years of tax returns
- Commendable customer service
- 24/7 Online support and online library for FAQs
- Easy import from TurboTax and Quicken
- online and downloadable versions of software available
- Variety of tools
- Mobile app for tracking the progress
Cons:
- Comparatively high-priced
- Can’t fully complete your taxes with the mobile app
2. TurboTax
Turbo tax occupies second place in the best Tax Software list due to its wide customer base and excellent customer service.
TurboTax provides free e-filing services and customer support yet for personalized live support will be charged. Overall it makes the whole tax filing experience smooth but that comes at a certain cost.
Pros:
- Easy-to-use and navigate user interface,
- On-demand assistance from a tax pro at home,
- Audit support included
- Easy import of all information for QuickBooks users
- Wide variety of packages to choose from starting from the free package and extending to $200
- 100% accuracy and a maximum refund guarantee.
Cons:
- Not the cheapest
- Desktop software is limited to Windows users only
3. TaxAct
TaxAct is a highly recommended business tax software for people who are not new to tax filing and are already familiar with jargons. It is quite affordable as compared to other big-name competitors, it has a very intuitive and easy to follow user interface, along with free unlimited technical and tax specialist support.
Similar to any other tax software TaxAct guarantees 100% accuracy and failing which they will refund your software costs and pay any difference in your lower refund or higher tax liability.
Pros:
- Relatively cheap than any other software,
- Simple and intuitive user interface,
- Unlimited and free phone support by the technical team and tax specialists,
- 100% accuracy and a maximum refund guarantee,
- Variety of tools
- User can import PDF files of 1040, 1040A and 1040EZ returns
Cons:
- Less accessible customer support
- Audit coverage costs extra
- Additional fee for state returns
4. Tax Slayer
Tax Slayer has gained a lot of popularity over time due to its affordability and intuitive user interface. They have a unique pricing plan where the user is charged on the basis of support required.
TaxSlayer provides unlimited technical support over the phone and email. However, if the user requires tax professional support, they need to upgrade to a premium plan.
Therefore, it is a perfect choice for someone who has been doing online tax filing for some time and is pretty much familiar with the process.
Pros:
- Most affordable tax planning service
- Free filing for simple tax returns
- User-Friendly interface
- W-2 import available for paid versions
- Low add-on fee for state returns
- Audit support included
- Refund advance available for qualified filers
Cons:
- Advance professional support only in the premium version
- Can’t fully complete your taxes with the mobile app
5. eSmart Tax
eSmart Tax is a division of Liberty tax for online tax filing needs, it is another great option for small business owners due to its low cost and decent features.
eSmart follows a pretty straightforward tax preparation process, they offer an easy to use interface with a wide range of features and functionalities. It offers some other applications suitable for single filers or those with less complicated needs.
Pros:
- Low cost
- Easy to use and navigate interface
- 100% accuracy and a maximum refund guarantee
- Free live chat support
- Easy import options
- Printing and binding of tax returns
- Physical office branches are widely present
- Audit Assistance
- Mobile-friendly website
Cons:
- No mobile application
- No call support
6. FreeTaxUSA
FreeTaxUSA is a free tax filing software with extremely low pricing starting from $0 for federal returns and $14.99 for state returns including self-employment income.
It is a very likely choice for new businesses who want to save themselves from the pain of spending a chunk of amount on tax filing itself.
It has an easy to use interface where a user may progress through the whole process by answering questions they provide an article library as well.
Pros:
- Ultra-low priced filing for business taxes
- Optional two-step verification for security
- Intuitive and helpful user interface with great style
- Amended returns are free
- Audit assistance is included in Deluxe Edition
- 100% accuracy and a maximum refund guarantee
Cons:
- Only federal returns are free, state returns cost extra
- Less-robust support
- Upgrade to the deluxe version for audit support
7. Jackson Hewitt
Jackson Hewitt is the second largest in-person tax preparation company that has now started to offer online tax services.
The user interface and support options offered are decent, along with which they offer phone and chat support with tax professionals or technical help. They are capable of preparing and filing both simple and complex returns.
If you are someone with a simple tax return then Jackson Hewitt is for you.
Pros:
- Guaranteed maximum return
- Dependable phone, email and chat support
- Free audit assistance
- Multiple import options
- Refund advance
- In-person assistance through more than 6000 offices
Cons:
- Slightly expensive
- Free service is only for simple returns
- Customer support is unavailable on weekends
Conclusion:
While choosing a business tax software for small businesses, it is always recommended to choose the one that offers more functionality with good customer support at an average price.
However, making a choice is completely dependent on your business needs. This was my detailed list of the 7 Best Tax Software for Small Business. Most of these tools also offer a guide to tax filing as well.
Do share in the comments the tax preparation software of your choice.
Quick Links:
- 5 Best Security Practices for Small Businesses
- 4 New Essentials for Small Businesses Operating Remotely
- 5 Best Mobile Credit Card Readers for Your Small Business
- 5 Best Inventory Management Software for Small Businesses
