Many entrepreneurs and business owners who manually process their taxes tend to make errors or inadvertent omissions. As a result, they face costly fines and penalties. Savvy business owners avoid these problems by using tax software and hiring an accountant. Tech-Exclusive Network discusses how tax software benefits entrepreneurs and lists some top-tier business tax products.
Benefits of Tax Software to Entrepreneurs and New Small Business Owners
Tax Compliance
Manual tax accounting is prone to errors in the collection and calculation of data. Tax software eliminates these human errors by using automation to achieve tax compliance accurately and efficiently.
Tax software ensures you apply the correct federal and local tax rates for value-added tax (VAT), sales tax, indirect tax, goods service tax (GST), and other taxes, exempt or otherwise. The software automatically adjusts the rates for specific occasions, customers, and products.
Tax software also reduces the effort required to ensure that your business is tax compliant. These tools minimize the time you spend on paying taxes and reduce the total number of individual payments you make every year.
Financial Transparency
Tax software provides real-time tax insights. These tools often feature a live dashboard that displays vital tax information. Using tax software tools helps you improve the transparency with which your business operates. As a result, it helps you manage your business operations more effectively.
Moreover, the use of electronic platforms to register, file, and pay taxes makes it easier to track payments. As an entrepreneur, you can be more certain that your tax payments go to a government account as opposed to a manual process in which government officials may abuse the opacity of the process.
Best Tax Software for Entrepreneurs and New Small Business Owners
According to the National Society of Accountants, it costs Schedule C businesses about $184 on average to prepare taxes. Hiring an accountant can help you cut down on these costs — so can using tax software; however, the features and user experience vary widely with these tax software products.
Here are a few of the best tax software programs for entrepreneurs and new small business owners based on features, accuracy, and ease of use.
- FreeTaxUSA: Offers the best value
- TaxAct: Best for corporations and partnerships
- H&R Block: Best for general tax accounting purposes
- TurboTax: Best for virtual assistance
- TaxSlayer: Best for self-employed business owners
When shopping for tax software, check for additional features that match your business’s unique needs and the platform’s level of customizability. Furthermore, give preference to tools that offer adequate tax and technical support.
It’s Still Wise to Hire an Accountant
Helpful as tax software may be, it’s always a good idea to hire an accountant because only a professional understands the intricacies of the tax code. A professional accountant can quickly review your taxes and ensure you haven’t missed anything crucial. They ensure your business is fully compliant and help you avoid paying hefty fines and penalties.
Pay Your Business Taxes With Ease
Ensuring tax compliance is one of your essential priorities as a business owner. Using tax software and hiring a professional accountant enables you to manage your business’s taxes efficiently and accurately
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