Resources for Tax Software

Using tax software can save you significant time and money. For many small business owners, reviewing deductions and tax forms can be overwhelming. Business tax software includes step-by-step instructions and worksheets designed to help business owners take control of their business taxes.

With so many options available, choosing a provider of tax software for business use can be time-consuming. Evaluating your company needs is the first step in determining which tax software programs will work best for you. Do you buy tax deductible equipment? Is your company a sole proprietorship, a partnership or filed as an LLC? Do you have employees or work at home? These are some of the questions you need to answer when choosing a tax software provider to use. Regardless of which tax software provider you select, there are some real advantages to using tax software systems, such as the following:

1. Choose from a variety of tax software programs available to meet your filing and budgetary needs.

2. Tax software programs offer instructional guides to save you time.

3. You can use tax software for year-round finance tracking.

Pick the tax software that offers business-friendly features

Many tax software providers offer a range of software features designed to meet each users' unique needs. For example, a sole proprietor tax software version may not include all of the forms that a corporate business version would. Don't go cheap. Read up on the features and functionality of various tax software programs carefully and use the one that most closely matches your tax filing needs.

Use tax software to stop printing and mailing tax forms

One of the most convenient features of tax preparation software is that you can e-file. E-filing allows you to use your professional tax software to complete your tax returns and securely send your returns to the Internal Revenue Service all from your computer. Some suppliers of tax software also offer online services that don't require that you download software to your computer.

Use tax software to do more than file your taxes

In addition to filing your annual tax returns, tax software can help you manage other aspects of your business finances. Many tax software providers offer compatible accounting software to help you maintain your finances throughout the year and save time by transferring data directly to tax return forms.

• Don't fire your accountant. Accountants are knowledgeable about tax code and can help you uncover potential tax savings. While using business tax software is a great way to manage your tax deductions, maintain tax forms and pay quarterly taxes, tax preparation software lacks in helping you find ways to cut tax burdens.