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Read More Mar 8, 2023 Filed under: Accounting, Bookkeeping, Invoicing, Small Business
The Best Accounting Software For Tax Support
The best tax accounting software includes support for multiple tax forms, estimated quarterly taxes, and e-filing. Our favorites are QuickBooks Desktop Pro, QuickBooks Self-Employed, and Sage 50cloud.
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Expert Analyst & Reviewer
UPDATED
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Tax season is here again.
Before you start hyperventilating, take a deep breath. Don’t let 1099-MISCs, W-2s, and Schedule Cs scare you. As stressful as tax time can be, accounting software is there to help. Accounting software can assist you in preparing and filing a variety of tax forms, so you can concentrate on running the business you love.
Here at Merchant Maverick, we searched for the top accounting software systems for tax support and have come up with a few fantastic options to fit your business needs. The average program can handle 1099s, but we searched for accounting software that goes the extra mile. To truly get your money’s worth during tax season, check out one or all of the following three accounting vendors.
Learn More About Our Top Picks
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Read more below to learn why we chose these options.
Table of Contents [hide][show]
- The 3 Best Tax Accounting Software
- 1. QuickBooks Pro: Best Full-Featured Accounting Software With Tax Support
- 2. QuickBooks Self-Employed: Best Tax Software For Freelancers
- 3. Sage 50cloud: Best Tax Software For Large Businesses
- Choosing The Best Tax Accounting Software For Your Business
- Tax Accounting Software FAQs
- In Summary: Best Tax Accounting Software
Table of Contents
- The 3 Best Tax Accounting Software
- 1. QuickBooks Pro: Best Full-Featured Accounting Software With Tax Support
- 2. QuickBooks Self-Employed: Best Tax Software For Freelancers
- 3. Sage 50cloud: Best Tax Software For Large Businesses
- Choosing The Best Tax Accounting Software For Your Business
- Tax Accounting Software FAQs
- In Summary: Best Tax Accounting Software
The 3 Best Tax Accounting Software
The best tax accounting software includes features like support for multiple tax forms, estimated quarterly taxes, and e-filing capabilities. Check out our top picks for the best tax accounting software for businesses of all sizes, including QuickBooks Desktop Pro, QuickBooks Self-Employed, and Sage 50cloud.
1. QuickBooks Pro: Best Full-Featured Accounting Software With Tax Support
QuickBooks Desktop Pro |
|---|
Accounting Method
Accrual & Cash BasisPricing
$549/yearBusiness Size
Small to medium businesses with up to 3 usersBest for small to large businesses that need full-fledged accounting software with tax support.
QuickBooks Pro is a full-featured, locally-installed software that is loved by small businesses and accountants alike. In addition to numerous accounting features and integrations, QuickBooks Pro also supports the following tax forms:
- 1099-MISCs
- W-2s
- W-3s
- 1096s
- 940s
- 941s
- 944s
QuickBooks Pro has the largest selection of supported tax forms around, by far. Considering that most basic accounting software programs only support 1099s, the variety offered here can be a huge advantage.
QuickBooks Pro also offers additional tax features, including payroll liability reminders, receipt capture, and smart categorization for expenses.
Something that sets QuickBooks Pro even further apart is that the software allows you to buy and print your tax forms directly from the Intuit website. You can also e-file your 1099-MISCs with Intuit’s 1099 E-File Service, which starts at $14.99. QuickBooks Pro starts at $349.99/year.
Get Started With QuickBooks Desktop Pro
2. QuickBooks Self-Employed: Best Tax Software For Freelancers
QuickBooks Self-Employed |
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Accounting Method
Cash Basis OnlyPricing
$15-$35/monthBusiness Size
Freelancers or independent contractorsBest for freelancers and self-employed individuals that need help with estimated quarterly taxes and deductions.
QuickBooks Self-Employed is a tax tool that can be used for minor bookkeeping and federal tax filing. Unlike QuickBooks Pro, QuickBooks Self-Employed is designed with the freelancer in mind. QuickBooks Self-Employed offers the following tax support options:
- Estimated quarterly taxes
- Deductions
- Schedule C
- Automatic mileage tracking
A particularly challenging aspect of being a freelancer is calculating estimated quarterly taxes, so this is arguably one of the most useful features of QuickBooks Self-Employed. The software also helps freelancers take advantage of all possible deductions, including mileage, travel, meals, and home office space.
QuickBooks Self-Employed has three pricing plans ranging from $15-$35/month. The two highest priced plans are bundled with TurboTax Self-Employed, which allows you to easily transfer data from QuickBooks to TurboTax, pay estimated quarterly taxes online, and e-file your federal and state tax returns. The most expensive plan also includes unlimited tax advice and help all year long, as well as a final review of your return by a CPA.
Get Started With QuickBooks Self-Employed
3. Sage 50cloud: Best Tax Software For Large Businesses
Sage 50cloud |
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Accounting Method
Accrual & Cash BasisPricing
$56.08-$155.92/monthBusiness Size
Medium to large businesses with up to 40 usersBest for medium to large businesses that need to file 1099s, W-2s, or W-3s.
Sage 50cloud is locally-installed software with a cloud-based storage component. The high-customizable software is chock-full of features and can support up to 40 users. Sage50cloud boasts strong accounting and solid tax support for established medium to large businesses.
Sage 50cloud's standout tax support features include:
- 1099-MISCs
- w-2s
- w-3s
- Year-End Wizard for closing the books
Sage50cloud has three pricing plans ranging from $56.08/month to $145.17/month for one user. Because Sage 50cloud is very expensive compared to other accounting software programs, we recommend it to established medium or large businesses that need Sage's comprehensive features, customizability, and traditional accounting. The software also has a steep learning curve, and the UI is outdated. But these downsides don't negate the software's great tax support options.
Choosing The Best Tax Accounting Software For Your Business
Don’t let taxes scare you any longer. Using any of these three options, you can file your taxes with ease and confidence, knowing that you will survive another year — hopefully with much less stress and fear.
To summarize:
QuickBooks Pro is a great option for business owners with small to large businesses who need full-fledged accounting software as well as 1099, W-2, W-3, and/or 1096 support. You’ll get ample features, but be prepared for a steep learning curve; getting accustomed to this software requires some patience and time.
For the freelancers and the self-employed, QuickBooks Self-Employed is the way to go. You can’t file state taxes, but you do get estimated quarterly tax support, deduction support, and a Schedule C. The TurboTax integration in and of itself is almost reason enough to make use of this tax tool.
Sage 50cloud is ideal for medium to large businesses needing to file 1099s, W-2s, or W-3s. The software is expensive and has a steep learning curve, but you’ll get ample features, strong accounting, and incredible customizability.
If you aren’t already using any of these accounting software programs, maybe it’s time to switch. Switching accounting software in the middle of tax season might cause unnecessary hassle unless you feel up to the challenge. So instead, get a leg up for next tax season and start using one of these accounting software options for the years ahead.
But these aren’t the only options worth mentioning. QuickBooks Online supports 1099s and W-2s, FreshBooks supports 1099s, and Wave supports W-2s, W-3s, 940s, and 941s for certain states. All of these choices could be a good fit for you, depending on your business’s needs.
Make sure that you get the most out of your return by understanding small business tax deductions. With the right accounting software and these tips, you can survive another tax season! Good luck, and happy filing!
Tax Accounting Software FAQs
In Summary: Best Tax Accounting Software
- QuickBooks Desktop Pro:
- Best full-featured accounting software with tax support
- $349.99/year
- 3 users
- QuickBooks Self-Employed:
- Best tax software for freelancers
- $15-$35/month
- 1 user
- Sage 50cloud:
- Best tax software for large businesses
- $56.08-$145.17/month
- Up to 40 users
Erica Seppala
Expert Analyst & Reviewer at Merchant Maverick
An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.
View Erica Seppala's professional experience on LinkedIn.
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