The workload of a business filing 15 information returns compared to an accounting firm filing 1500 information returns is drastically different. Yet tax software pricing doesn’t necessarily reflect the differences.
Another issue is that most companies are largely dependent on the season to prepare their tax returns. Smaller companies might use their file software extensively for a couple of months, and then not use it at all the rest of the time.
It raises a practical purchase question. Should a company pay for continuous access or should the cost of its software depend on how much it actually is used for,
TaxFormHero takes the second approach, using per-form pricing rather than signup fees, subscriptions, or seat licenses.
Start with your actual filing volume
Making comparisons of filing platforms based on their advertised starting price is often misleading. Better comparisons start with your expected number of returns, as well as the features that you actually require.
TaxFormHero has a price of $1.99 per form. Gradually, the price per form is decreased when you grow your number of forms. Custom rates are available for businesses that file large volumes of paperwork.
A recurring subscription is not required for a filer who only works occasionally. Seat licenses are not needed for CPAs who handle multiple clients. CPA who handles many clients.
Optional Services should Actually be Optional
Not every filer needs identical services.
A business might feel comfortable downloading copies of its recipients and distributing them through the process it has in place. A different business might prefer the provider of filing services manage delivery.
TaxFormHero 1099 eFiling software allows you to download copies for recipients for no cost. Print-and-mail and electronic recipient delivery services are available as paid add-ons. The verification of TINs is an optional service.
The modular method allows companies to distinguish between the cost of filing, as well as the expenses of supplementary services, instead of being forced to pay for features they don’t use.
Organizational issues arise due to scale
The price isn’t all that important when the volume of filings increases.
A professional accountant that manages several companies should be able to keep track of their EINs in a manner that is simple and doesn’t require the collection of different EINs. TaxFormHero lets you manage multiple payers with only one login. It also allows bulk imports via Excel or CSV.
The option that blends 1099 filing with W-9 collection could allow for an improvement in the administrative burden while maintaining a clear separation of payer records. Importing organized data can be a more effective way to manage the multiple returns of professionals.
Compliance and Security are a part of the Cost Discussion
The most affordable filing solution isn’t always best if the additional work it requires or the limitations required by the business are the main reasons.
IRS-authorized TaxFormHero permits electronic filing for 1099s, W-2s, and other tax returns. The company says it uses 256-bit encryption both in the rest of the process and during transportation, and also offers two-factor verification. It states that it is planning to finish an independent SOC 2-Type I audit of the Security Trust Service criteria by October 2025.
Companies should consider these security and operational considerations together with the return price.
Buy to Use the Filing Machine You Already Have
Small businesses, accounting firms and multi-entity firms should not all be required to use the same software.
The formula that is most efficient takes into account the volume of filings and the number of entities that pay as well as the work load for processing data, the need for delivery of information to recipients, verification requirements, and security expectations.
It isn’t necessary to keep a fixed monthly price for software if you’re only focusing on annual compliance. The cost of a pay-per form structure can fluctuate along with the amount that is filed, which makes budgeting much easier.