The workload of a business who files 15 returns of information compared to an accounting firm filing 1500 tax returns is vastly different. Yet tax software pricing doesn’t necessarily reflect the differences.
Another problem is that returns on information are extremely seasonal. For instance small businesses may utilize its software to file frequently during a short period but use it sparingly all year.
It poses the question of how to buy. Do companies have to purchase software access in a continuous manner or in accordance with the actual amount of files that it makes?
TaxFormHero adopts the second method by using per-form pricing, rather than signup fees, subscriptions, or seat licenses.
Start with your actual filing volume
Comparing platforms solely by their prices advertised can be misleading. Better comparisons start with the anticipated number of returns and the types of services that you actually require.
TaxFormHero’s advertised pricing starts with $1.99 per form. The cost per form goes down with the increase in volume, and reaches $0.45 after 1,000 forms. For businesses that have large volumes of forms custom rates can be discussed.
For those who file only on occasion, the absence of a ongoing subscription means there’s nothing to cancel after filing season. Seat licenses are not needed for a CPA who handles several clients.
Optional services should be a choice
Not all filers need the same services.
Some businesses may prefer to download copies of their recipients and distribute them in their existing procedures. It is possible for a business to have the service provider handle the delivery.
With TaxFormHero’s 1099 e-filing platform, recipient copies can be downloaded free. In addition to the paid-for services, you can also add electronic recipient delivery or print-and-mail. A TIN verification option is also an optional service.
This approach is modular and allows companies to separate the expense of filing from the cost of other services, rather than automatically paying for features they might not need.
Organizational problems are caused by the size
Price isn’t the only thing to consider when the volume of filings increases.
Accounting software can assist an accountant who is working with several businesses in organizing their EINs without having a messy collection of accounts. TaxFormHero lets you manage multiple payer entities using only one login. It also supports bulk imports using Excel or CSV.
The solution that combines 1099 filing with W-9 filing should result in an improvement in the administrative burden while maintaining a clear distinct payer record. For those who handle a large number of returns, importing information in a way that is logical can be easier than filling in individual forms.
Costs for Compliance and Security Included in Cost Discussion
The most cost-effective option to file isn’t necessarily the least expensive if it creates additional administrative work or lacks capabilities that the company requires.
TaxFormHero is IRS-approved and offers electronic filing for W-2s, 1099s and other informational returns. The company claims it employs 256-bit encryption both in the rest of the process and during transit, and provides optional two-factor verification. It states that it is planning to complete an independent SOC 2-Type I audit of the Security Trust Service requirements by the end of October 2025.
Business owners should consider these safety and operational issues along with the price per return.
Purchase the Filing System You Actually Have
A small business or accounting company, or multi-entity business shouldn’t be forced into identical software economics.
The most effective calculation will take into consideration the filing volume, the number organizations that pay for data entry, the workload of data entry the requirements for delivery of goods to recipients need to be verified, as well as security expectations in conjunction.
It isn’t necessary to maintain a monthly, fixed cost for software when you are only implementing periodic compliance. The expense of a pay per form structure could fluctuate as does the amount required to be that is filed, which makes budgeting much easier.
