A business that files 15 tax returns as well as the accounting firm that files 1,500 have distinct workloads. Tax software costs don’t necessarily reflect this variance.
Another issue is that most companies are heavily dependent on the time of year to submit their tax returns. Smaller businesses may utilize their filing software heavily for a couple of months, and then not use it at all throughout the rest of the year.
That raises a practical purchasing question. Do companies have to pay for software access continuously or according to the amount of files it makes?
TaxFormHero takes the second approach, using per-form pricing rather than signup fees, subscriptions, or seat licenses.
Begin by examining your filing volume
It is misleading to compare filing platforms solely based upon the price they advertise. Comparing platforms for filing based on their stated starting prices can be inaccurate.
TaxFormHero publishes a price of $1.99 per form. The cost per form decreases as the volume increases until it is $0.45 after 1,000 forms. Custom rates are available for businesses that file large volumes of paperwork.
If you are an occasional filing, there isn’t a subscription to cancel at the close of filing season. For an CPA managing multiple clients, there aren’t any separate seat licenses that can be purchased because the additional staff must participate in the process.
Optional services must be available as an option
Each filer may require different services.
A business might be content using its current system of downloading copies to recipients and then dispersing the copies. One business may prefer that the company that provides filing services manage distribution.
TaxFormHero’s 1099 electronic filing platform the recipient’s copies can be downloaded for free. If you pay for services, you can add electronic delivery for recipients, or print and mail. The verification of TINs is an option service.
The modular method allows companies to differentiate between the expense of filing, as well as the expenses of supplementary services, instead of paying automatically for features they might not require.
Organizational issues are caused by scale
Price isn’t the only consideration when the volume of filings increases.
Accounting software is a great tool for accountants who work with multiple businesses to manage their EINs without having a messy collection of accounts. TaxFormHero lets multiple payer entities through a single login and also bulk imports using Excel or CSV.
The option that blends 1099 filing and W-9 filing should result in less administrative work while maintaining a clear distinct payer record. For people who handle a variety of tax returns, importing structured data is a lot more efficient than completing forms in isolation.
Cost discussion should cover security and compliance
The most affordable filing solution isn’t always best if the additional work required or the absence of resources required by the business are the main reasons.
IRS-authorized TaxFormHero supports electronic filing for 1099s as well as W-2s and other tax returns. The company claims that it utilizes 256-bit data encryption at rest and during transit, and provides optional two-factor verification. It claims it will 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 alongside the price per return.
Purchase the Filing Machine You Already Have
Small businesses, accounting firms, and multi-entity enterprises shouldn’t be all forced to utilize the same program.
The most useful calculation takes into account the volume of filings, the number of organizations that pay for data entry, the workload of data entry and requirements for delivery to recipients need to be verified, as well as security expectations in conjunction.
It isn’t necessary to have a perpetual monthly cost for software if you’re only focusing on periodic compliance. The cost of a Pay-per-Form structure could fluctuate depending on the amount of information filled out, making budgeting simpler.