Finding the best and most affordable way to e-file with commercial tax prep software requires careful consideration, but small businesses should not put it off for too long. Getting tax filing software is one of the most accurate ways to ensure that a business’s financial situations are taken care of throughout the year.
There is a less than 1% error rate for e-filed returns compared to 21% for paper returns.
Tax prep software cannot eliminate the risk of human error, but it can flag major ones before you submit the business’s documents to the Internal Revenue Service. Investing in Advanced Micro Solution’s 1099-etc E-Filer does guarantee:
- The most affordable solution on the market
- Live customer service experts
- Modular capabilities
- Total pricing transparency
Our E-Filer solution offers its users a choice between E-File Direct (add-on module) and E-File Services via a third-party vendor. E-File Direct must be purchased alongside a base W-2/1099 Forms Filer program.
Who Should E-File with Commercial Tax Prep Software?
Not all tax prep software is created equal. It is important to find the program that meets your business’s most essential needs and might even include bells and whistles that you want. A commercial tax prep program is good for businesses that:
- Want to prepare and file their own taxes
- Need an affordable alternative to an accountant
- Are looking for user-friendly support
- Need to improve their tax prep efficiency
- Want built-in features that flag inconsistencies
There are times when tax prep software might not be the right choice for you or your business as well. You may re-consider opting to e-file with commercial tax prep software if the business:
- Is not equipped to adequately file taxes
- Has a complex financial situation
- Is experiencing rapid growth
- Does not understand all of the available deductions and credits
- Has poor record-keeping
It is essential not to over-extend yourself or your team. First-time tax preparers should look for an easy-to-use, intuitive system that streamlines exactly how you complete and send your tax documentation throughout the year.
Pros and Cons of Using Tax Prep Software
Weighing the advantages and disadvantages of getting any new software will help prevent you from spending unnecessary money on the wrong one. Some of the pros of opting to e-file with commercial tax prep software are:
Cost-Effective – Purchasing tax software is often the more affordable option between choosing DIY software or hiring a professional tax preparer. Looking for a program with add-on features is one way to defray costs since you may only need to purchase certain tools as you need them.
Error Detection – Utilizing automated calculations and built-in checks can minimize the risk of costly errors. Your business’s tax prep software should also do more for you than flag potential errors. Look for a system that might highlight missing information and identify issues that could result in an audit by the IRS.
Secure Record-Keeping – Protecting your business and employees’ sensitive financial details is paramount. The ability to e-file with commercial tax prep software allows businesses to send reports directly to the appropriate agency and hold onto anything else with less risk of losing it.
It is important not to talk yourself into getting a specific program if you realize it will not work for your business. Disadvantages of specific programs might include the software:
- Offering limited support for complex situations
- Upselling or having hidden fees
- Lacking personalization or customizable tools
- Not providing human support
Tax e-filers with more complex financial situations, like those who have multiple businesses, can still use tax prep software but may choose not to go that route. Checking to make sure there are customizable features that support each location is essential so that you do not need to get your business multiple software programs or applications.
Live customer support is additionally a key feature that no one should underestimate. You may require assistance if/when:
- There is a software glitch
- You are setting up a new module or feature
- You have a billing question
Make sure that any software vendor informs its users on their website or when users call them about exactly what they can expect.
E-File with AMS Software
We give small business and individual users a choice when it comes time to select how they will e-file with commercial tax prep software.
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
Download our free 1099-etc Demo software today. See how our E-Filer operates with the base program or alongside a full-accounting suite of tools.