The work load for a small company making 15 returns of tax information and a larger accounting firm filing 1,500 are quite different. Yet tax software pricing doesn’t always reflect that difference.
A second wrinkle is the fact that returns to information are extremely seasonal. Smaller businesses may utilize their file software extensively for a couple of months, and then barely touch it for the remainder of the year.
It raises a practical purchase problem. Should an organization pay for access to its software on a continuous basis or should the cost of its software depend on how much it actually is used for,
TaxFormHero uses the second approach and charges per form instead of requiring signup fees or subscriptions.
Start With Your Real File Volume
It’s not a good idea to judge filing platforms solely based upon the advertised price. Check the number of returns you plan to file and what services you’ll need.
TaxFormHero’s pricing is published and starts with $1.99 for each form. Gradually based pricing decreases the rate per form for higher volume bands, eventually reaching $0.45 for forms beyond 1,000. Businesses that file much larger volumes can discuss custom rates.
For those who file only on occasion an absence of a recurring subscription means there is nothing to unsubscribe from after the filing season. If an CPA manages more than one client, he or doesn’t have to purchase seats separately because additional staff members are needed to aid in the process.
Optional services must be available as an option
Not every client needs the same service.
Some companies may prefer to download copies of their recipients and distribute them through their existing procedures. A business may wish to have the service provider handle the delivery.
With TaxFormHero’s 1099 e-filing platform, recipient copies can be downloaded free. Print-and mail and electronic delivery services are available as a paid options. The verification of TINs is an additional service.
This modular approach allows businesses to separate the expense of filing and the expense of additional services, instead of spending money on features they do not require.
Organizational issues arise due to the size
Filing volume isn’t just about price.
An accountant who is a professional and manages multiple companies should be able to keep track of their EINs in a manner that is easy and does not require the collection of different EINs. TaxFormHero allows multiple payer entities with a single login and bulk imports via Excel or CSV.
In keeping the distinction between payer records and the W-9 collection, a more comprehensive solution for 1099 filing and W-9 collection should reduce repetitive administrative workload. For professionals who manage many tax returns, organizing data according to logical order can be more efficient than filling out the individual forms.
Compliance and Security Should Be Part of the Cost Discussion
The most cost-effective option to file doesn’t mean it’s the most expensive in the event that it requires additional administrative tasks or isn’t equipped with the tools that the company requires.
TaxFormHero is an IRS-approved tax filing system that allows for electronically filing of 1099s, information returns and W-2s. The company states that it uses 256-bit data encryption at rest and during transport, and offers two-factor verification. The company says it plans to complete an independent SOC 2-Type I audit of the Security Trust Service standards by October 2025.
Companies should consider these operational and security considerations along with the cost per return.
Buy to Use the Filing Machine You Already Have
Small-scale businesses, accounting firms and multi-entity firms should not be forced to use the same software.
The most beneficial takes into account the volume of filings, number payer entities working on data entry, delivery requirements for recipients, verification requirements, and security expectations.
It’s not necessary have a perpetual monthly cost for software if you’re only doing the compliance for a season. A pay-perform model allows the cost to rise and fall as the work is filed making budgeting significantly simpler.