Best Tax Software for Small Business 2024

Tax season can feel like a maze for small businesses—endless forms, changing regulations, and a constant worry about getting it right. Luckily, you don’t have to do it all by hand! Choosing the right tax software can ease the paperwork and help you make smarter financial moves that help your business thrive. In this guide, we’ll break down the benefits of specialized tax software, outline key features to look for and review top solutions tailored for small businesses so you can focus more on growing and less on filing forms.

Why Small Businesses Need Specialized Tax Software

As a small business owner, you deal with unique tax challenges that differ from those of large corporations or individual filers. Specialized tax software has features that address these needs to make tax preparation easier.

Simplifies Tax Preparation

One of the biggest headaches during tax season is the complexity of organizing expenses, deductions, and forms. Tax software simplifies this process by automating calculations, organizing your records, and guiding you to the correct tax forms, so you don’t have to be a tax expert to get it right.

Ensures Compliance

Filing errors and missed deadlines can lead to hefty penalties, but with the right software, you’re equipped with the tools to stay compliant with IRS regulations. Many programs offer automatic reminders and up-to-date forms that keep you informed of the latest tax laws.

Saves Time and Reduces Errors

Manual tax prep is time-consuming and prone to errors. Tax software saves time by automating repetitive tasks and reviewing your entries for mistakes, allowing you to file faster and more confidently.

Key Features to Look for in Tax Software

When choosing tax software, it’s important to focus on features that meet your business needs. We recommend looking for the following:

• Federal and State Tax Filing: Look for software that supports federal and state filings. It should provide information on relevant filing dates and deadlines to help you stay compliant.

• Cost and Plans: Pricing structures vary widely—some software is ideal for freelancers, while others are better suited for growing businesses. Review the plans and choose a solution that’s affordable and fits your needs.

• User Experience: User-friendly software can make a world of difference. Look for options with intuitive interfaces and step-by-step instructions that guide you through the filing process.

• Expert Tax Assistance: Some tax software includes access to tax professionals or CPAs, either on-demand or via chat, for extra support with complex filings or questions.

• Audit Defense and Refund Guarantees: Many tax software providers offer audit defense and refund guarantees. This adds peace of mind by backing up their accuracy and support if the IRS requests additional information.

• Integration: Look for tax software that integrates with accounting tools like QuickBooks, Stripe, and PayPal. This can streamline your financial management and reduce time spent on data entry.
• Accuracy and Error Coverage: Accuracy guarantees cover penalties and interest due to calculation errors. This feature ensures your software stands by its accuracy and supports you in case of unexpected issues.

Top Tax Software for Small Businesses

Small businesses need reliable, affordable, and supportive tax software to simplify tax filing while maximizing accuracy and compliance. Here’s a look at the leading tax software providers that stand out for their robust features, pricing flexibility, and dedicated support

TurboTax

TurboTax is a top pick for small business owners seeking a hands-on approach to tax preparation. Known for its step-by-step guidance, TurboTax walks users through each part of the filing process with clear instructions and helpful tips that reduce guesswork. It offers live support from tax professionals and CPAs, which means you’re never on your own when questions arise. Whether you’re facing a complex filing situation or just want reassurance that you’re doing things correctly, TurboTax’s expert support and intuitive interface make it a dependable choice for small businesses.

FreeTaxUSA

FreeTaxUSA is a powerful yet budget-friendly option that doesn’t compromise on quality. With free federal filing and low-cost state options, it’s ideal for small businesses focused on minimizing costs. The software offers essential tools to handle business filings, and its audit defense feature provides added peace of mind. FreeTaxUSA might lack some of the advanced frills found in more expensive software, but it covers the basics well and keeps your tax filing process efficient and affordable.

TaxSlayer

TaxSlayer stands out for its affordability and targeted support for self-employed individuals and small business owners. It offers straightforward filing options at competitive prices, along with access to professional tax assistance for more complex questions. TaxSlayer is also known for its ease of use, making it a solid option for businesses with simpler tax needs or those new to handling business taxes. Its platform is both accessible and functional, providing a no-nonsense solution that small businesses can rely on for cost-effective, accurate filings.

TaxAct

TaxAct combines affordability with a comprehensive suite of features tailored for small businesses. It offers accuracy guarantees, which can be a lifeline for businesses seeking error-free filing. It includes tools specifically designed for business owners, such as guided filing for deductions and credits. TaxAct is a dependable option for those looking for accuracy without the high costs often associated with business tax software.

QuickBooks

QuickBooks offers tax software that integrates with its accounting software, making it perfect for businesses already using QuickBooks. This integration reduces the need for manual data entry, helping you avoid mistakes and saving valuable time. QuickBooks offers a comprehensive toolkit to manage both your accounting and tax needs under one platform, making it an ideal choice for businesses looking for an all-in-one solution that keeps finances and tax preparation seamlessly connected.

Evaluating Tax Software Performance

Not all tax software is created equal, and you won’t always be able to test it out before purchasing. However, you can get a good feel for how it works through these three tools:

• Better Business Bureau Rating: BBB ratings give insight into the reliability and customer satisfaction of tax software so you can gauge its reputation and performance.
• Customer Reviews: User feedback sheds light on real experiences with the software’s usability and support features. This offers a more complete picture of its strengths and weaknesses.
• Independent Evaluations: These recommendations are based on independent analyses, ensuring you get a balanced perspective on each software option.

Advertiser and Affiliate Disclosures

Mantis Funding aims to be transparent about our affiliations to maintain trust with our readers. Our content may include affiliate links. These partnerships don’t affect our recommendations; they help us produce informative guides for you. Any advertiser influence on our recommendations will be clearly noted to ensure you receive an unbiased view of each product.

Conclusion

Choosing the right tax software for your small business is a strategic move that goes beyond just meeting filing requirements; it’s about empowering your business to handle finances efficiently and stay compliant without unnecessary stress. Investing in tax software that simplifies filing, reduces errors, and ensures compliance frees you to focus on what matters most: growing your business.

About Mantis Funding

Mantis Funding is a business financing solutions firm catering to small and mid-sized business owners in the United States.