16 Best Small Business Tax Software Reviewed in 2025
Best Small Business Tax Software Shortlist
Here’s my shortlist of the best small business tax software:
Our one-on-one guidance will help you find the perfect fit.
Tax season can be a headache, especially for CFOs juggling multiple tasks. You want accuracy and efficiency, but manual processes can lead to costly errors. That's where small business tax software steps in, making your life easier by automating calculations and ensuring compliance.
In my experience, choosing the right software can save your team time and reduce stress. I've independently tested and reviewed various options to give you an unbiased, well-researched list of top picks.
In this article, I'll share what I've found to be the best small business tax software on the market. You'll get insights into features, pros and cons, and pricing, helping you make an informed decision for your business.
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Best Small Business Tax Software Summary
This comparison chart summarizes pricing details for my top small business tax software selections to help you find the best one for your budget and business needs.
| Tool | Best For | Trial Info | Price | ||
|---|---|---|---|---|---|
| 1 |  Avalara Avalara automates sales tax compliance with real-time calculations and reporting. | Best for global tax compliance | Free demo available | From $19/month | Website |
| 2 |  H&R Block H&R Block ensures accurate filing with expert guidance and audit support. | Best for in-person support | Free plan available | From $19.99/filing | Website |
| 3 |  FreeTaxUSA FreeTaxUSA delivers cost-effective filing with unlimited amendments. | Best for free federal filing | Not available | From $14.99/state | Website |
| 4 |  Lacerte Tax Lacerte provides CPA-grade tax prep with powerful form libraries and analytics. | Best for professional accountants | Free demo available | From $479/year (billed annually) | Website |
| 5 |  Xero Xero integrates tax filing with accounting to track expenses and deductions. | Best for small business accounting | 30-day free trial | From $1/month (for 6 months, then $20/month) | Website |
| 6 |  ATX Tax Preparation ATX Tax Preparation offers professional-grade tax compliance with a deep forms library. | Best for complex returns | Free demo available | From $1,059 (one-time purchase) | Website |
| 7 |  TaxAct TaxAct makes business tax filing with easy-to-use forms and deductions. | Best for straightforward filing | Free plan available | From $99.95/filing | Website |
| 8 |  Nav Nav helps businesses optimize taxes with credit insights and financial tracking. | Best for financial insights | Not available | Pricing upon request | Website |
| 9 |  TaxSlayer TaxSlayer provides affordable tax filing with guided preparation and e-filing. | Best for budget-friendly options | Free plan available | From $34.95/filing | Website |
| 10 |  Kashoo Kashoo offers simple tax-ready accounting with automated categorization. | Best for simple invoicing | 14-day free trial | From $20/month | Website |
Best Small Business Tax Software Review
Below are my detailed summaries of the best small business tax software that made it onto my shortlist. My reviews offer an in-depth look at the key features, pros & cons, integrations, and ideal use cases of each tool to help you find the best one for you.
Avalara is a tax compliance automation software designed for businesses operating across multiple jurisdictions. It caters to companies needing to manage complex tax requirements, including sales tax, VAT, and other transaction taxes.
Why I picked Avalara: Avalara excels in global tax compliance, making it perfect for businesses dealing with international transactions. Its automated tax calculation feature ensures accuracy across various tax types and jurisdictions, while the software's real-time tax rate updates keep your tax calculations current. Additionally, Avalara's reporting capabilities can easily help you maintain compliance with detailed transaction logs.
Standout features & integrations:
Features include address validation, ensuring accurate tax jurisdiction assignment for every transaction. Its returns preparation feature compiles all necessary tax data, making filing easier and reducing manual work. Plus, the audit support tools help businesses stay prepared with detailed transaction history and compliance documentation.
Integrations include Shopify, Magento, WooCommerce, QuickBooks, NetSuite, SAP, Microsoft Dynamics, Xero, Sage, and BigCommerce.
Pros and cons
Pros:
- Handles international tax compliance
- Real-time tax rate updates
- Automated tax calculations
Cons:
- Complex setup process
- Requires regular data updates
H&R Block is a tax preparation software for small business owners who need both online and in-person assistance. It makes tax filing easy by offering essential tools and professional support to ensure accurate returns.
Why I picked H&R Block: H&R Block offers the unique combination of online tax filing with the option for in-person support at their locations. This is ideal for those who prefer a personal touch when dealing with complex tax situations. The software provides an advanced set of tools for small business tax filing, including easy import of previous returns and detailed guidance throughout the process. Plus, with professional assistance readily available, you can confidently manage your tax obligations.
Standout features & integrations:
Features include a step-by-step filing process that guides you through each section of your tax return. Its audit support helps you handle any inquiries from tax authorities with confidence. The software also offers a refund transfer option, allowing you to pay for the service with your refund.
Integrations include QuickBooks, Xero, FreshBooks, Sage, TurboTax, TaxAct, TaxSlayer, Liberty Tax, Drake Software, and Wave.
Pros and cons
Pros:
- Easy import of past returns
- Refund transfer option available
- Detailed filing guidance
Cons:
- Higher cost for full services
- Limited customization options
FreeTaxUSA is an online tax preparation software aimed at individuals and small businesses. It offers free federal tax filing and low-cost state returns, providing an affordable solution for tax compliance.
Why I picked FreeTaxUSA: FreeTaxUSA provides free federal tax filing, making it an economical choice for small businesses and individuals. It supports a wide range of tax forms, allowing you to file advanced returns without additional costs. The software's step-by-step guidance helps you navigate the filing process efficiently, and with its low-cost state filing option, you can complete your returns without overspending.
Standout features & integrations:
Features include a deduction finder that helps you identify potential deductions to maximize your refund. Its accuracy guarantee ensures your calculations are correct, providing peace of mind. FreeTaxUSA also offers prior-year import, allowing you to carry over information from past returns easily.
Integrations include QuickBooks, TurboTax, H&R Block, TaxAct, TaxSlayer, Liberty Tax, Jackson Hewitt, Credit Karma, E-file, and TaxPro.
Pros and cons
Pros:
- Comprehensive tax form support
- Step-by-step filing guidance
- Accuracy guarantee included
Cons:
- Limited customer support options
- No mobile app available
Lacerte is a tax preparation software made for accounting professionals who handle complex tax scenarios. It assists in preparing and filing a wide range of tax returns, ensuring compliance and accuracy.
Why I picked Lacerte: Lacerte is designed for professional accountants who need to manage intricate tax filings. Its advanced form library covers federal, state, and local taxes, making it suitable for diverse filing requirements. The software's diagnostic tools can also help identify errors, ensuring your tax returns are accurate. Plus, with its detailed reporting capabilities, you can provide thorough analyses to your clients.
Standout features & integrations:
Features include batch processing capabilities, enabling accountants to handle multiple tax returns efficiently. It also offers built-in e-filing management to track submission statuses in real-time. Additionally, the software integrates with bookkeeping tools, streamlining data imports and reducing manual entry.
Integrations include QuickBooks, Microsoft Excel, SmartVault, eFileCabinet, Right Networks, Drake Software, TaxDome, OfficeTools, Bill.com, and Practice CS.
Pros and cons
Pros:
- Detailed reporting capabilities
- Secure client communication
- Suitable for complex tax scenarios
Cons:
- Steep learning curve
- Occasional software lagging
Xero is a cloud-based accounting software designed for small businesses and their financial needs. It offers a range of features to manage invoicing, bank reconciliation, and financial reporting.
Why I picked Xero: Xero excels in small business accounting with its user-friendly interface and advanced financial management tools. It provides real-time financial insights. The software supports multiple currencies, which is beneficial for businesses operating internationally. Xero's invoicing capabilities also make it easy to create and send invoices, helping you maintain a steady cash flow.
Standout features & integrations:
Features include bank reconciliation that helps you match transactions with your bank statements effortlessly. Its expense tracking feature allows you to monitor spending and manage budgets effectively. Xero also offers a payroll function, the process of paying employees and handling taxes.
Integrations include PayPal, Stripe, Square, HubSpot, Shopify, WooCommerce, Mailchimp, Gusto, Bill.com, and Expensify.
Pros and cons
Pros:
- Real-time financial insights
- Supports multiple currencies
- Easy invoicing process
Cons:
- Can be slow with large data
- Learning curve for new users
ATX Tax Preparation is a tax software solution designed for small businesses and accounting professionals. It offers advanced tax compliance and preparation capabilities, catering to complex return scenarios.
Why I picked ATX Tax Preparation: ATX is particularly suited for handling complex tax returns, making it a standout choice for businesses with intricate tax needs. Its detailed form library includes federal, state, and local forms, which is ideal for those dealing with multi-jurisdictional tax scenarios. The software also provides a strong calculation engine that helps accuracy in tax computations, while its user-friendly interface helps you navigate through complex tax codes, making it easier to manage your tax obligations.
Standout features & integrations:
Features include strong e-filing capabilities, ensuring seamless submission of tax documents while staying compliant with ever-changing regulations. Its built-in diagnostic tools help identify potential errors before filing, reducing the risk of audits or penalties. Additionally, the software includes advanced client management features, allowing tax professionals to track filings, manage documents, and streamline workflow for multiple clients efficiently.
Integrations include QuickBooks, Xero, Sage, NetSuite, Intacct, Microsoft Dynamics, FreshBooks, Zoho Books, Wave, and Kashoo.
Pros and cons
Pros:
- Extensive form library
- Accurate tax calculations
- Multi-jurisdictional support
Cons:
- Steep learning curve
- Limited customer support
TaxAct is a tax preparation software aimed at small businesses and individual filers. It simplifies the tax filing process by providing the necessary tools to prepare and file taxes efficiently.
Why I picked TaxAct: TaxAct offers straightforward tax filing, making it accessible for users who prefer a simple process. It provides easy navigation through tax forms, ensuring you can complete your filings without unnecessary complications. The software's built-in guidance also helps you understand tax requirements and avoid errors. These features, combined with affordable pricing, allows businesses to manage their taxes effectively without incurring high costs.
Standout features & integrations:
Features include a step-by-step filing guide that walks you through the tax preparation process. Its accuracy review tool checks for errors before submission, reducing the chance of mistakes. The software also offers refund tracking, so you can monitor the status of your tax returns.
Integrations include QuickBooks, Xero, FreshBooks, Sage, NetSuite, Intacct, Microsoft Dynamics, Zoho Books, Wave, and Kashoo.
Pros and cons
Pros:
- Refund tracking available
- Built-in tax guidance
- Error-checking tools included
Cons:
- Basic customer support
- No mobile app support
Nav is a financial management tool designed for small businesses and entrepreneurs. It provides insights into business credit scores, financing options, and cash flow management.
Why I picked Nav: Nav excels in delivering financial insights that are crucial for small business owners looking to optimize their financial health. It offers a detailed view of your business credit scores, enabling you to understand and improve your creditworthiness. The platform's financing marketplace also connects you with lenders, offering customized financing options. Additionally, Nav's cash flow management tools help you track income and expenses, ensuring you maintain a healthy cash flow.
Standout features & integrations:
Features include personalized financial recommendations, helping you identify the best financial products based on your business profile. The platform also provides real-time credit alerts, notifying you of any changes to your business credit report. Additionally, Nav includes financial health insights, offering a snapshot of your overall financial standing to help guide better decision-making.
Integrations include QuickBooks, Xero, FreshBooks, Square, PayPal, Stripe, Shopify, Gusto, Wave, and Plaid.
Pros and cons
Pros:
- Access to multiple financing options
- Effective cash flow tracking
- Easy-to-understand financial dashboard
Cons:
- Requires ongoing data input
- Can be overwhelming for new users
TaxSlayer is a tax preparation software designed for small businesses and individual tax professionals. It offers essential tax filing capabilities and is known for its affordability, making it accessible for cost-conscious users.
Why I picked TaxSlayer: TaxSlayer provides a budget-friendly solution without compromising on essential tax filing features. It offers a variety of tax forms and schedules, catering to different filing needs depending on the tax year. The software's straightforward interface also makes it easy for you to navigate and complete tax returns efficiently.
Standout features & integrations:
Features include a built-in deduction finder to help maximize refunds by identifying eligible write-offs. The software also provides access to tax payment options, allowing you to manage balances directly within the platform.
Integrations include QuickBooks, Xero, FreshBooks, Sage, NetSuite, Intacct, Microsoft Dynamics, Zoho Books, Wave, and Kashoo.
Pros and cons
Pros:
- Comprehensive tax form coverage
- Real-time error checking
- Suitable for multiple tax scenarios
Cons:
- Limited advanced features
- Basic customer support
Kashoo is an online accounting software designed for small businesses and freelancers. It simplifies financial management by providing tools for invoicing, expense tracking, and reporting.
Why I picked Kashoo: Kashoo offers straightforward invoicing features that make it easy for you to send professional invoices quickly. The software's interface is clean and intuitive, allowing you to manage your finances without any hassle. It also provides real-time insights into your cash flow. With its focus on simplicity, Kashoo is ideal for users who want to keep their accounting processes uncomplicated during tax season.
Standout features & integrations:
Features include automatic expense categorization, which helps you stay organized by sorting transactions into appropriate categories. Its dashboard offers a clear view of your financial status, showing key metrics at a glance. The software also supports multi-currency transactions, making it suitable for businesses with international clients.
Integrations include Stripe, PayPal, Square, FreshBooks, QuickBooks, Xero, HubSpot, Shopify, Gusto, and Mailchimp.
Pros and cons
Pros:
- Automatic expense categorization
- Real-time financial insights
- Multi-currency support
Cons:
- Limited advanced features
- Basic reporting tools
Other Small Business Tax Software
Here are some additional small business tax software options that didn’t make it onto my shortlist, but are still worth checking out:
- FreshBooks
For freelancers and consultants
- Zoho Books
For automation features
- Odoo Accounting
For integrated business management
- TaxCycle
For Canadian tax compliance
- Kintsugi
For mental health professionals
- QuickBooks
For invoicing and payments
Small Business Tax Software Selection Criteria
When selecting the best small business tax software to include in this list, I considered common buyer needs and pain points like affordability and ease of use for those without accounting experience. I also used the following framework to keep my evaluation structured and fair:
Core Functionality (25% of total score)
To be considered for inclusion in this list, each solution had to fulfill these common use cases:
- Prepare and file business taxes
- Calculate deductions and credits
- Generate IRS-compliant tax forms
- Support multiple business entity types
- Ensure compliance with federal and state regulations
Additional Standout Features (25% of total score)
To help further narrow down the competition, I also looked for unique features, such as:
- Real-time audit risk assessment
- AI-powered tax recommendations
- Automated import of financial data
- Integration with accounting software
- Multi-user access with permission controls
Usability (10% of total score)
To get a sense of the usability of each system, I considered the following:
- Provide a clean and intuitive interface
- Offer guided workflows for tax preparation
- Minimize manual data entry through automation
- Ensure mobile accessibility for tax filing on the go
- Deliver quick access to frequently used tools
Onboarding (10% of total score)
To evaluate the onboarding experience for each platform, I considered the following:
- Provide interactive product tours for new users
- Offer comprehensive knowledge bases and FAQs
- Include video tutorials and step-by-step guides
- Ensure easy data migration from previous software
- Feature responsive chatbot or live assistance
Customer Support (10% of total score)
To assess each software provider’s customer support services, I considered the following:
- Offer multiple support channels like chat, phone, and email
- Provide 24/7 availability or extended support hours
- Deliver prompt and helpful responses to inquiries
- Maintain an extensive help center with troubleshooting guides
- Ensure access to tax professionals or CPAs for guidance
Value For Money (10% of total score)
To evaluate the value for money of each platform, I considered the following:
- Provide competitive pricing with clear cost structures
- Offer flexible plans for different business sizes
- Include free trials or money-back/refund guarantees
- Deliver core tax filing features without expensive add-ons
- Ensure fair pricing relative to features and industry standards
Customer Reviews (10% of total score)
To get a sense of overall customer satisfaction, I considered the following when reading customer reviews:
- Highlight ease of use and software reliability
- Identify common complaints or recurring issues
- Assess customer sentiment on support responsiveness
- Evaluate user feedback on tax accuracy and compliance
- Consider ratings from reputable review platforms
How to Choose Small Business Tax Software
It’s easy to get bogged down in long feature lists and complex pricing structures. To help you stay focused as you work through your unique software selection process, here’s a checklist of factors to keep in mind:
| Factor | What to Consider |
| Scalability | Ensure the software can grow with your business. Look for solutions that handle increasing transactions and additional users without compromise. |
| Integrations | Check if the software integrates with your existing tools like accounting software and payroll systems to simplify your processes. |
| Customizability | Choose software that lets you tailor features to suit your specific business needs, such as custom reports or tax forms. |
| Ease of Use | Opt for software with a straightforward interface. Your team should be able to navigate it without extensive training or technical support. |
| Budget | Consider all costs, including initial setup and ongoing fees. Ensure it fits within your financial constraints and offers good value for the features. |
| Security Safeguards | Ensure the software has robust security measures to protect sensitive financial data, including encryption and regular security updates. |
| Customer Support | Evaluate the availability and quality of customer support. Look for multiple support channels and quick response times for resolving issues. |
| Compliance Updates | Check that the software stays up-to-date with the latest tax laws and regulations, providing automatic updates to ensure compliance. |
Trends in Small Business Tax Software
In my research, I sourced countless product updates, press releases, and release logs from different small business tax software vendors. Here are some of the emerging trends I’m keeping an eye on:
- AI-Driven Insights: AI tools are being integrated to provide personalized tax advice and error detection. This helps users optimize deductions and avoid mistakes. Some vendors now offer AI-powered chat support to answer tax-related questions quickly.
- Blockchain Security: Blockchain is being used to enhance security by ensuring data integrity and transparency. This is particularly useful for safeguarding sensitive financial transactions and records, giving users peace of mind.
- Real-Time Compliance Updates: Software now offers real-time updates on tax law changes, ensuring businesses remain compliant without manual intervention. This feature is crucial for businesses operating in multiple jurisdictions with varying regulations.
- Eco-Friendly Features: Vendors are focusing on reducing paper use by promoting digital document storage and e-filing options. This trend not only helps the environment but also simplifies record-keeping and reduces physical storage needs.
- User-Driven Customization: More solutions are allowing users to customize dashboards and reports to fit their specific needs. This trend makes it easier for businesses to focus on the most relevant data, enhancing decision-making and efficiency.
What Is Small Business Tax Software?
Small business tax software is a tool that helps businesses prepare, file, and manage their tax obligations. Accountants, bookkeepers, and small business owners typically use these solutions to ensure compliance and optimize tax processes.
These tools generally come with key features like real-time compliance updates, AI-driven insights, and user-driven customization to help with accuracy, efficiency, and tailored financial management. Overall, small business tax software simplifies tax-related tasks, saving time and reducing errors for small businesses.
Features of Small Business Tax Software
When selecting small business tax software, keep an eye out for the following key features:
- Real-Time Compliance Updates: Ensures your business stays current with the latest tax laws and regulations, reducing the risk of penalties.
- AI-Driven Insights: Provides personalized tax advice and error detection to optimize deductions and minimize mistakes.
- User-Driven Customization: Allows you to tailor dashboards and reports to fit your specific needs, enhancing decision-making.
- Blockchain Security: Utilizes blockchain technology to protect sensitive financial data and maintain data integrity.
- Automated Tax Calculations: Simplifies the process by automatically computing taxes based on your inputs, saving time and enhancing accuracy.
- Multi-Currency Support: Accommodates businesses operating internationally by handling transactions in various currencies.
- Deduction Finder: Identifies potential deductions to maximize your tax refund and minimize your liability.
- Audit Support: Offers guidance and tools to help you handle inquiries from tax experts confidently.
- Expense Tracking: Monitors spending and helps manage budgets effectively, ensuring accurate financial records.
Benefits of Small Business Tax Software
Implementing small business tax software provides several benefits for your team and your business. Here are a few you can look forward to:
- Time Savings: Automated calculations and filing processes reduce the time spent on tax tasks, allowing you to focus on other business priorities.
- Increased Accuracy: Real-time compliance updates and AI-driven insights help prevent errors and ensure your tax filings are correct.
- Enhanced Decision-Making: Customizable dashboards and reports provide clear financial insights, aiding in strategic planning and budgeting.
- Cost Efficiency: Deduction finders and expense tracking can help identify savings opportunities, maximizing your federal tax refund and minimizing liability.
- Improved Security: Blockchain technology and secure data handling protect sensitive financial information from unauthorized access.
- Stress Reduction: Audit support and expert guidance alleviate the pressure of dealing with tax authorities, giving you peace of mind.
- International Capabilities: Multi-currency support allows you to manage taxes for global transactions, simplifying international business operations.
Costs and Pricing of Small Business Tax Software
Selecting small business tax software requires an understanding of the various pricing models and plans available. Costs vary based on features, team size, add-ons, and more. The table below summarizes common plans, their average prices, and typical features included in small business tax software solutions:
Plan Comparison Table for Small Business Tax Software
| Plan Type | Average Price | Common Features |
| Free Plan | $0 | Basic tax filing, limited customer support, and essential compliance updates. |
| Personal Plan | $5-$25/user/month | Enhanced filing options, deduction finder, and simple expense tracking. |
| Business Plan | $30-$60/user/month | Multi-user access, advanced reporting, audit support, and integration with accounting software. |
| Enterprise Plan | $70-$120/user/month | Customizable features, dedicated customer support, real-time compliance updates, and multi-currency support. |
Small Business Tax Software FAQs
Here are some answers to common questions about small business tax software:
What are two disadvantages of using tax software to file a tax return?
Using tax software can sometimes restrict you if there are income limits preventing free filing. Additionally, you might incur extra charges for filing state returns. It’s essential to carefully review the terms to avoid unexpected costs.
How many times can you use tax software?
If you’re not a licensed tax preparer, you can e-file up to five federal tax returns without additional fees. This limit is set by the IRS. For those needing to file more returns, purchasing a professional tax software plan is necessary.
How much income can a small business make without paying taxes?
For small businesses, if your net earnings from self-employment are $400 or more, you must file an income tax return. This ensures compliance with tax regulations and helps avoid penalties.
Can I deduct tax software as a business expense?
Yes, tax software can often be deducted as a business expense. It is considered a miscellaneous itemized deduction, provided you itemize your deductions on your state tax return.
Is tax software suitable for complex business returns?
Most of the best tax software can handle complex returns, but it may require a more advanced version or additional features. For intricate tax situations, consider software with robust support and comprehensive features.
How secure is my data with tax software?
How secure is my data with tax software?
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