As we move towards the tax season, small business owners are looking for efficient ways to handle their finances. One of the crucial steps for small business owners is to file their taxes accurately and timely. While some business owners choose to work with an accountant, others opt for tax software to save time and money. However, with numerous tax software options available, choosing the right one for your business can be overwhelming. In this article, we will explore the best tax software for small businesses in 2023.
Table of Contents
- Introduction
- Why Use Tax Software for Small Businesses
- Factors to Consider When Choosing Tax Software
- Best Tax Software for Small Businesses
- QuickBooks Online
- TurboTax Business
- H&R Block Business
- TaxSlayer
- Xero
- FreshBooks
- Wave
- Zoho Books
- Sage Business Cloud Accounting
- FreeTaxUSA
- Comparison of the Best Tax Software for Small Businesses
- Features
- Pricing
- Customer Support
- How to Choose the Best Tax Software for Your Small Business
- Conclusion
- FAQs
Introduction
Tax season can be a challenging time for small business owners. It can be time-consuming, stressful, and expensive to file taxes accurately and timely. With tax software, small business owners can streamline the process and save time and money. Tax software can help automate calculations, maximize deductions, and ensure compliance with tax laws. In this article, we will explore the best tax software for small businesses in 2023.
Why Use Tax Software for Small Businesses
Using tax software can benefit small business owners in various ways. Firstly, tax software can automate calculations, reducing the risk of errors. Secondly, tax software can help maximize deductions, ensuring that business owners pay the lowest amount of taxes possible. Thirdly, tax software can provide reminders and alerts for important tax deadlines, ensuring compliance with tax laws. Lastly, tax software can save time and money by eliminating the need for an accountant or bookkeeper.
Factors to Consider When Choosing Tax Software
Before choosing tax software for your small business, there are several factors to consider. Firstly, consider the software’s features, such as tax preparation, payroll, and accounting. Secondly, consider the pricing structure, including monthly fees, per-user fees, and per-return fees. Thirdly, consider the level of customer support, including phone, email, and chat support. Fourthly, consider the software’s ease of use, including user interface and accessibility. Lastly, consider the software’s integrations with other tools, such as bank accounts and accounting software.
Best Tax Software for Small Businesses
There are numerous tax software options available for small businesses, each with its features and pricing structure. Here are the ten best tax software for small businesses in 2023:
QuickBooks Online
QuickBooks Online is a popular tax software for small businesses that offers various features, including tax preparation, payroll, and accounting. QuickBooks Online offers a user-friendly interface, making it easy for small business owners to navigate. The pricing structure includes three plans: Simple Start, Essentials, and Plus, ranging from $25 to $80 per month.
TurboTax Business
TurboTax Business is another popular tax software for small businesses that offers various features, including tax preparation, e-filing, and data import. TurboTax Business offers a user-friendly interface and provides helpful tips and guidance throughout the tax preparation process. The pricing structure includes two plans: Business and Business Incorporated, ranging from $169.99 to $249.99.
H&R Block Business
H&R Block Business is a tax software for small businesses that offers various features, including tax preparation, e-filing, and audit support. H&R Block Business provides a user-friendly interface and offers a free version for simple tax returns. The pricing structure includes three plans: Basic, Deluxe, and Premium, ranging from $24.99 to $79.99.
TaxSlayer
TaxSlayer is a tax software for small businesses that offers various features, including tax preparation, e-filing, and refund advance. TaxSlayer provides a user-friendly interface and offers a free version for simple tax returns. The pricing structure includes four plans: Simply Free, Classic, Premium, and Self-Employed, ranging from $0 to $47.
Xero
Xero is an accounting software that also offers tax preparation features for small businesses. Xero provides various features, including invoicing, payroll, and inventory management. Xero offers a user-friendly interface and provides integrations with other tools, such as bank accounts and inventory management software. The pricing structure includes three plans: Early, Growing, and Established, ranging from $11 to $62 per month.
FreshBooks
FreshBooks is an accounting software that also offers tax preparation features for small businesses. FreshBooks provides various features, including invoicing, time tracking, and project management. FreshBooks offers a user-friendly interface and provides integrations with other tools, such as bank accounts and project management software. The pricing structure includes three plans: Lite, Plus, and Premium, ranging from $6 to $20 per month.
Wave
Wave is a free accounting software that also offers tax preparation features for small businesses. Wave provides various features, including invoicing, receipt scanning, and payroll. Wave offers a user-friendly interface and provides integrations with other tools, such as bank accounts and payment processing software.
Zoho Books
Zoho Books is an accounting software that also offers tax preparation features for small businesses. Zoho Books provides various features, including invoicing, expense tracking, and inventory management. Zoho Books offers a user-friendly interface and provides integrations with other tools, such as bank accounts and CRM software. The pricing structure includes three plans: Basic, Standard, and Professional, ranging from $9 to $29 per month.
Sage Business Cloud Accounting
Sage Business Cloud Accounting is an accounting software that also offers tax preparation features for small businesses. Sage Business Cloud Accounting provides various features, including invoicing, expense tracking, and cash flow management. Sage Business Cloud Accounting offers a user-friendly interface and provides integrations with other tools, such as bank accounts and payroll software. The pricing structure includes three plans: Accounting Start, Accounting, and Accounting Plus, ranging from $10 to $25 per month.
FreeTaxUSA
FreeTaxUSA is a tax software for small businesses that offers various features, including tax preparation, e-filing, and refund calculator. FreeTaxUSA provides a user-friendly interface and offers a free version for simple tax returns. The pricing structure includes two plans: Free and Deluxe, ranging from $0 to $6.99.
Comparison of the Best Tax Software for Small Businesses
To help small business owners choose the right tax software, we have compared the ten best tax software for small businesses based on their features, pricing, and customer support.
Features
QuickBooks Online, Xero, FreshBooks, Zoho Books, and Sage Business Cloud Accounting offer accounting features in addition to tax preparation, while TurboTax Business, H&R Block Business, TaxSlayer, Wave, and FreeTaxUSA focus mainly on tax preparation.
Pricing
The pricing structure varies between the tax software options, with some offering free versions while others have multiple plans with different pricing tiers. Free options are available with TaxSlayer, Wave, and FreeTaxUSA, while H&R Block Business, TurboTax Business, and Xero have plans starting at under $25 per month. FreshBooks and Zoho Books offer a mid-range pricing structure, with plans ranging from $6 to $29 per month, while Sage Business Cloud Accounting falls on the lower end of the pricing spectrum with plans starting at $10 per month.
Customer Support
All of the tax software options provide customer support, with some offering more comprehensive options than others. QuickBooks Online, Xero, and Zoho Books provide phone support during business hours, while H&R Block Business, TurboTax Business, and TaxSlayer offer phone support seven days a week. FreshBooks and Wave offer customer support via email and chat, while FreeTaxUSA and Sage Business Cloud Accounting provide email support only.
Conclusion
Choosing the right tax software for your small business can be a daunting task, but with so many options available, there is sure to be a software that meets your needs. From free options like Wave and FreeTaxUSA to mid-range options like FreshBooks and Zoho Books, to more comprehensive options like QuickBooks Online and Xero, there is a software that can provide tax preparation and other accounting features at a price point that works for your business.
Before making a decision, it is important to consider factors like the features offered, pricing structure, and customer support options. By doing so, you can ensure that you choose the best tax software for your small business in 2023.
FAQs
- What is the best tax software for small businesses?
The best tax software for small businesses varies depending on the specific needs and preferences of the business owner. Some popular options include QuickBooks Online, Xero, and FreshBooks, as they offer a wide range of features and integrations. Other factors to consider when choosing the best tax software include pricing structure and customer support options.
- Which tax software offers free versions for simple tax returns?
TaxSlayer, Wave, and FreeTaxUSA all offer free versions for simple tax returns. These options can be a good fit for small businesses with straightforward tax needs.
- What accounting features are offered by tax software for small businesses?
Most tax software for small businesses offers basic accounting features such as expense tracking, invoicing, and financial reporting. Some options, like QuickBooks Online and Xero, offer more advanced features like inventory management and payroll processing.
- Which tax software offers integrations with other tools?
Many tax software options offer integrations with other tools to streamline accounting and tax preparation tasks. QuickBooks Online, Xero, and FreshBooks are among the options that offer a wide range of integrations with other business tools.
- What should I consider when choosing tax software for my small business?
When choosing tax software for your small business, it is important to consider factors such as the specific features and integrations you need, the pricing structure of the software, and the level of customer support offered. It can also be helpful to read reviews and compare multiple options before making a decision.
