When you choose to get e-file software and which software system you purchase is each user’s personal choice. Individual taxpayers and businesses can both benefit from using an electronic filer for all of their tax filing requirements. Any software program should allow its users to:
- Eliminate the cost of expensive W-2 and 1099 forms
- Save time and resources
- Eliminate repetitive tasks like loading special forms into a printer
- Avoid purchasing too many forms or running out of forms
Advanced Micro Solutions’ 1099-etc E-Filer software is an affordable and customizable solution for small businesses who require in-house tax filing support.
Our E-Filer is designed to provide any of its users with more than one solution for their e-filing needs. Users can choose between:
- E-File Direct (add-on module)
- E-File Services (via third-party vendor)
Whichever e-filing solution is chosen should provide users with the necessary tools to make W-2 and 1099 processing fast, efficient, and the most cost effective.
Is E-File Software Worth It For Individual Taxpayers?
Getting an e-filer is worthwhile for many individual taxpayers who are looking for:
- Greater accuracy
- Faster refunds
- More convenience than paper filing
The IRS issues most refunds within 21 days for taxpayers who file electronically and select the direct deposit option.
The true value of an e-file program for tax filing needs will depend on each individual’s specific tax situation. Some individuals with simple returns look at free filing. A free program might work in certain cases, but free software has its limitations. If your tax needs become more complex, you will need a higher-tier product with paid-for features.
Using a comprehensive e-filer is most worth the cost when:
You want reliable technological support. Getting yourself the most comprehensive e-file software can look like having access to live support from a tax expert. Our 1099-etc E-Filer users can call a member of our team if they have questions or if there is an issue with our system. Our experts will always be a member of our team, not someone answering from a third-party call center who is unfamiliar with our products.
An e-filer system should also have:
- Built-in checks
- Step-by-step, menu-driven guidance
- Tutorials to answer any of your remaining questions
Your tax situation is heavily involved. If you handle your own personal financial reporting, an e-filer is a good tool to have if you need to report more than a single W-2 income and standard deductions. Complex situations that may require you to invest in e-file software include:
- Having investment income
- Owning a rental property
- Owing taxes in more than one state
- Being self-employed or a freelancer
- Major life changes, like recently retiring or receiving an inheritance
You need to reduce errors. Filing your taxes by hand may seem easy enough for an individual, but you may still find yourself making unnecessary and/or costly errors.
There is a less than 1% error rate for e-filed returns compared to 21% for paper returns.
Your current tax filing process becomes inconvenient. An e-filing program should allow its users to import and export their data in a few simple steps. You will also have an easy place to store and access your tax history for future reference or in the event of an audit. E-file software additionally enables users to file whenever and wherever they want ahead of any IRS deadline.
Pros and Cons of Getting an E-File System For Small Businesses
While e-filing provides notable efficiency and accuracy, some users may feel less inclined to get a program without the level of personalized tax advice that you get from an accountant. Making the choice on whether or not to purchase an e-filer system requires you to weigh the benefits or potential drawbacks.
Pros
- It saves time and money for users
- It offers a step-by-step, user-friendly experience
- Record-keeping is simplified and organized
- There are fewer manual data entry errors
- It provides faster filing with a quicker turnaround time for refunds
Cons
- Cloud-based e-file software can bring security and privacy risks
- User-input errors are possible if the software is not fully automated
- There may be hidden costs or upsells for basic programs
- Technical glitches can affect a user’s ability to meet deadlines
- You may pay for more tools than you need if a program is not customizable
Reputable e-filing tools that are affordable and customizable are possible for small businesses on a budget. Making the best choice when it comes to choosing your e-filing system will relate to how comfortable you feel with handling taxes on your own.
Saving money on administrative costs, like printing and mailing paper returns, might make the decision a no-brainer for your business. Getting desktop e-file software that is easy-to-use will lessen the learning curve for the person who is responsible for handling the in-house tax filing.
How to Choose: In-House E-Filer vs. Hiring An Accountant
Individuals and small businesses may find that hiring an accountant is necessary for specific tax reasons that were either unforeseen or overlooked. Hiring a tax expert might be the best way to move forward if you need:
Year-Round Tax Planning
Preparing and filing your returns might work for certain software users, but others may need to look into getting additional support. If you still want to use an e-filer for your tax filing purposes, small businesses can hire an in-house accountant.
Individual taxpayers who prefer to use e-file software will need to make their own informed financial decisions. These include figuring out all of the ways to:
- Reduce your future tax liabilities
- Make tax-smart decisions, like buying or selling properties
- Organize and forecast your finances
A knowledgeable accountant can help you plan and implement essential strategies if you decide to take that route rather than navigating your finances on your own.
Support After Receiving an IRS Notice or Facing an Audit
Dealing with a tax authority or agency can be a slippery slope if you are inexperienced or had a tax filing mishap. Hiring an expert accountant rather than just relying on your e-file software will provide you with:
- Audit defense
- Additional error prevention
- Trusted representation to protect your rights
There is not necessarily a right or wrong answer when it comes to determining whether you should use an e-filer or hire an accountant to handle the tax filing procedure for you or your business. That is a judgment call that each taxpayer must make based on their situation.
Signs It Might Be Time to Get an E-Filer
It is best to avoid putting off getting an e-filer until you or your business is desperate for support. There are certain signs that might indicate when it is time to make a decision on upgrading how you handle tax filing.
- You realize that you need more expert features
- Your current e-file software creates more tasks than it streamlines them
- You need a more affordable solution than your current process
Feeling comfortable with your tax software is important. Whether you use only an e-filer or you decide to get a full-accounting suite of tools to meet each of your requirements, it should not interfere with any of your other tasks or responsibilities.
Getting Started with AMS’ E-Filer
Our 1099-etc E-Filer might not be for everyone, but we deliver options that cater to the unique needs of our different users. Whether you are an individual tax filer or you are responsible for handling a small business’s tax documents, your next tax season with our e-file software can provide straightforward solutions and fewer complications.
E-File Direct
- Flat fee
- Unlimited number of form filings
- Users can verify, view, and print files
E-File Services
- Volume pricing (fee per form)
- Forms are e-filed through a third-party vendor
- Different service levels available
Our add-on E-Filer acts as an extension of our base W-2/1099 Forms Filer program. The core system supports W-2, W-3, and many 1099 forms. It also supports up to 99,999 employees or recipients per payer. Users can include our E-Filer with any or all of the five other modules that we designed for our users. In addition to getting our e-file software, you can try out:
- AMS Payroll
- Software Generated Forms
- Forms Filer Plus
- Affordable Care Act Filer
- 1042-S Filer
Download our free 1099-etc Demo software today and see how these systems interact with each other to create a full modular suite of tools. The free demo operates as an almost fully functional version of our 1099-etc software. The main exceptions are:
- Some data will be replaced with pound signs when you print forms
- Certain electronic filing features are disabled
Enter your real data into the demo program to see how the system will treat it. Users have the added benefit of our system containing the same data and information once you decide to buy the program. If you need any additional support with navigating our e-file software or any other program, do not hesitate to contact our team with any questions.