Accounting software for tax

Tax season is an important time for U.S. citizens and a time when many people seek the assistance of professional accountants. Whether you’re an individual taxpayer or a business owner, it always makes sense to use accounting software specially designed for tax preparation.

Tax season typically runs from the start of January until the end of April. It is that time of year again and possibly your last chance to get your business accounting organized before tax season. Since most accounting software have their biggest price discounts during this time, you may be able to get a full package for less than what you pay for an annual subscription.

Accounting software for tax

You’ve probably heard about all the benefits of using accounting software, but you might not know that there are specific benefits to using it for your taxes. Accounting software can help you get organized and keep track of your business’s finances so that you don’t have to spend hours doing it all manually.

If you’re looking for an accounting tool that will help you prepare and file your taxes, here are some features to look for:

  • A straightforward interface that doesn’t require any training or tutorials
  • An easy way to import data from previous years (so you don’t have to start from scratch every year)
  • Automatic calculations that can be customized by user preference (for example, if you want certain items excluded from certain reports)

Tax accounting software is a tool that allows you to manage your taxes easily. This is a very important part of your business, so you need a tool that will help you do it well.

Accounting software for tax

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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Tax Support

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

CompanySummaryNext Steps
Best full-featured accounting software with tax support $349.99/year 3 usersVisit SiteRead More
Best tax software for freelancers $15-$35/month 1 userVisit SiteRead More
Best tax software for large businesses $56.08-$145.17/month Up to 40 usersVisit SiteRead More

Read more below to learn why we chose these options.

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.

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QuickBooks Desktop Pro

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Best 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.

best Accounting Software for Tax Support

Get Started With QuickBooks Desktop Pro

Read our in-depth review

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QuickBooks Self-Employed: Best Tax Software For Freelancers

QuickBooks Self-Employed

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Best 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.

Best Tax Accounting Software

Get Started With QuickBooks Self-Employed

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Sage 50cloud: Best Tax Software For Large Businesses

Sage 50cloud

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Best 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.

Best Tax Accounting Software

Get Started With Sage 50cloud

Read our in-depth review

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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

What is the best financial, tax, and accounting software?

When it comes to the best financial, tax, and accounting software, you can’t go wrong with QuickBooks Pro. Although it does have a learning curve, users that take the time to learn the software find that it offers unmatched accounting features and tax support.

Which accounting software is best for taxes?

QuickBooks Pro, QuickBooks Self-Employed, and Sage 50cloud are all solid options when it comes to accounting software with good tax support. QuickBooks Pro is a good choice for businesses of all sizes, QuickBooks Self-Employed is ideal for freelancers, and Sage 50cloud is great for larger businesses that want customizable software.

Can I track business deductions in my accounting software?

Most accounting software comes equipped with expense tracking that lets you categorize and track your deductible business expenses. Some software, including QuickBooks Desktop and QuickBooks Self-Employed, offer additional features like mileage tracking, automatic expense categorization, and other helpful tax tools.

Is there a free tax accounting software option?

Wave is free tax accounting software that does offer support for W-2s, W-3s, 940s, and 941s in select states. However, most free accounting software is limited in features and tax support, so make sure to explore all options — including paid software — to find the features your business needs the most.

In Summary: Best Tax Accounting Software

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