The workload of a business that files 15 tax returns as compared to accounting firms that file 1500 information returns is drastically different. Tax software prices don’t always reflect this distinction.
Another problem is that information returns are extremely seasonal. Small companies may use their software for filing heavily for a few months and only use it for a few months, and then stop using it the rest of the time.
This raises a crucial issue regarding purchasing. Should businesses pay on a continuous basis for access, or should its software cost follow the amount of data it actually stores?
TaxFormHero uses the second approach and charges per form rather than requiring signup fees or subscriptions.
Start with Your Real Filing Volume
It is misleading to compare filing platforms solely based upon the advertised price. A better comparison begins by estimating the number of returns, as well as the features that you actually require.
TaxFormHero costs $1.99 per form. Graduated pricing reduces the cost per form across larger volume bands to $0.45 for forms with more than 1,000. Custom rates are offered to companies that have a large volume of forms to file.
A recurring subscription is not necessary for an occasional filer. Seat licenses are not required for an CPA who works with multiple clients.
Optional services must be optional
Each client may not require the same service.
A business might be content with the process currently in place of downloading copies of the recipient’s copy, and then dispersing the copies. Some businesses may prefer the firm that handles filing services manage delivery.
With TaxFormHero’s 1099 e-filing platform, recipient copies can be downloaded free. Pay-for-services include electronic recipient delivery printing and mail, as well as TIN verification. Verification of TINs is an additional service.
This approach is modular and allows businesses to segregate the expense of filing services from the expense for supplementary service instead of having to pay for features they may not need.
The scale of the problem is also a challenge for organizations
When filing additional documents, price is not the only consideration to take into account.
Accounting software can assist an accountant working with multiple companies to organize their EINs without having a cluttered number of accounts. TaxFormHero lets you manage multiple payer entities using only one login. It also supports bulk imports using Excel or CSV.
A greater 1099 filing as well as W-9 collection solution should reduce repetitive administrative work while maintaining an unambiguous separation between the payer’s records. For those who handle a large number of returns, importing data organized in a systematic manner could be easier than filling in each form.
Cost discussion should include compliance and security
The cheapest filing option will not necessarily be the least expensive if it creates additional administrative work or lacks capabilities the organization requires.
TaxFormHero is IRS-approved and offers electronic filing for W-2s, 1099s, and other informational returns. The company states that it uses 256-bit encryption in both the state of rest and transportation, and also offers 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.
The business should look at these operational and security considerations alongside the price per return.
Purchase for the Filing System You Actually Have
A small business or accounting company, or multi-entity enterprises shouldn’t be pushed to use the same software.
The formula that is most efficient takes into account the number of filings and the number of entities that pay and the workload of processing data, the need for delivery of information to recipients the requirements for verification, security requirements.
It is not necessary to have a perpetual monthly cost for software when you are only implementing the compliance for a season. Pay-per-form allows for the cost to fluctuate with the amount of filing done, which makes budgeting much simpler.