When it comes to the complex and confusing tax world, we’re all just a little bit intimidated. But with the right information, getting your taxes done can be much easier. To simplify your life, we’ve come up with a list of factors to consider when choosing a tax filing service:
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Will this tax filing service help me save money?
While most services offer discounted rates for small businesses, many of them won’t help you actually save money on taxes. For example, taxfyle’s small business tax filing service offers a bundled discount when you use Taxfyle, but this is only for federal taxes. You’re better off doing your own research and consulting with a professional to ensure you don’t pay more than you need to.
Price
When you are paying for an online tax filing service, it is important to know that there are multiple ways that online services charge for their services. Some charge a flat rate, while others will charge a percentage of your return. If you are using an online service, make sure that you are aware of the fees. An example of a flat rate is $39.99 per return that can be filed electronically. A percentage charge may vary based on your tax liability. While you may think that paying a flat fee is ideal, keep in mind that it will cost more money if your taxes are more complicated. A fixed rate can also work against you if the information on your return is not detailed or has not been collected properly and has to be resent.
How would you like to pay?
Some services offer monthly or yearly subscriptions, while others require paying for the entire service upfront. Not all services offer refunds if you pay for the full year upfront, so be sure to check before signing up. Next, you’ll want to look at the company’s process for receiving information from your business, such as systems for monthly activity reporting and information returns. You’ll also want to be sure that the company can receive information from third parties such as Subchapter S corporations or limited partnerships that you may own.
The Quality of Work
Before you choose a tax filing service, make sure you know their process. Find out whether they use online or software to file. And if they use software, ask yourself if it’s intuitive and easy to navigate. In addition, it’s important to understand whether they have any specialities. For example, if you have a complicated tax situation, are self-employed, have side hustles, or file for international businesses. You will want to choose an accountant with specific knowledge in those areas.
Toll-Free Number or Dedicated Accountant
A toll-free number is always nice, but don’t let the lack of one discourage you from calling your accountant. Sometimes accountants keep regular schedules which means there are times they will be unavailable. If you have a dedicated accountant, make sure they check their emails regularly and respond quickly.
Does the service help you organize other legal aspects of running a business?
If not, you might want to look elsewhere, as you’ll have to keep track of multiple accounts and other services offered by each company. Again, expert assistance and guidance is crucial, especially if you are new to this area of the law. The more help you get from the start, the fewer obstacles you’ll face later. Two products from Intuit, TurboTax Self-Employed and Quickbooks Self-Employed, are both good options if you plan on hiring contractors, running payroll or incorporating. The Quickbooks Self-Employed Mobile App lets you easily track your mileage, expenses and invoices, so you never overpay the IRS. It also provides 24/7 access to your account online, letting you manage your business expenses while on the go.
Location
There are two ways to file taxes in the United States. You can go physical or you can go online. Both options have their pros and cons.
Going physical
If you like having a face-to-face interaction with your tax filing service, you need to seek services located in your area. You will also want to find out if they offer online services as well. If not, you should at least look for a service that offers live chat support. Most tax filing services don’t offer live chat support because of the time zone differences. However, this is still much better than no support at all. If you prefer to work with an actual person, find out if the services allow you to schedule appointments in advance. This way, you won’t have to wait for long periods
Free Trial
Choosing a tax filing service can sometimes be confusing. When comparing services, look for services that give you the option to use them for free before purchasing their services. Most online services allow you to create a profile, but they charge you after a certain period. When comparing services, find the ones that offer at least a month of free service to the customer. This will allow you to test out their services and easily compare them with other services. It also gives you ample time to determine if the service is right for your needs or not. If they don’t allow you to do this, call and ask them to offer a free trial period for your specific needs. This is a great way to determine if the service is right for you quickly.
Free trials are limited to tax return filing; they can be great for other areas.
How long has the company been in business?
A company that has been around for years is more likely to be around for years to come, ensuring that your taxes will be filed correctly and on time. This is a great option if you aren’t located in the same area as your chosen company. You won’t have to worry about them going out of business and being left without your paperwork.
