A business that file 15 information returns and an accounting practice that files 1,500 will have quite different workloads. Yet tax software pricing doesn’t necessarily reflect the differences.
Another issue is that most companies are heavily dependent on the season to prepare their tax returns. A small company may use its software for filing extensively for a brief period, but barely touch it during the rest of the year.
This brings up a significant problem with purchasing. Should a company purchase software access in a continuous manner or in accordance with the actual amount of files it makes?
TaxFormHero employs the second approach which is based on a form-specific price, rather than signup memberships, subscriptions or seat licences.
Start with your actual filing volume
It’s misleading to compare filing platforms solely based on the price advertised. Consider the amount of returns you plan to file as well as the services you need.
TaxFormHero charges $1.99 for each form. Gradually, the cost per form is decreased when you grow your number of forms. For companies that file large volumes the possibility of customizing rates is discussed.
If you are an occasional filing, there isn’t a option to cancel your subscription at the end of filing season. If an CPA has more than one client, he or is not required to buy separate seat licenses as more staff is required to help with the workflow.
Optional services must be a choice
Not all filers need the same services.
One business may be content downloading copies for recipients and then distributing them via the existing system. The business might want to have the service provider handle delivery.
TaxFormHero offers a no-cost copy of the recipient’s receipt for download. If you pay for services, you can add electronic recipient delivery or print-and-mail. The verification of TINs is an optional service.
This modular approach permits companies to separate the cost of filing services and the charges for additional services, instead of automatically paying features they may not be using.
The scale of the problem is also a challenge for organizations
The price isn’t the only factor when filing volumes increase.
Accounting software can aid an accountant who works with multiple businesses to manage their EINs without having a large list of accounts. TaxFormHero allows multiple payer entities to be managed under one login. It also supports bulk imports through Excel or CSV.
The method that combines 1099 filing and W-9 collection will allow for an improvement in the administrative burden but still ensuring a clear distinction between the payer’s records. For those who manage a lot of tax returns, importing structured data can be considerably more practical than filling out the forms one-by-one.
Costs for Compliance and Security are Included in Cost Discussion
The cheapest option for filing might not be the most cost-effective option if it requires more administrative tasks, or doesn’t have the capabilities that an organization requires.
IRS-authorized TaxFormHero supports electronic filing for 1099s, W-2s and other information returns. The company claims that its platform provides two-factor authentication and employs the 256-bit encryption for data in transit and at rest. The company claims that it will carry out an independent audit of SOC2 Type II in October 2025 for the Security Trust Services requirements.
Owners of businesses should be aware of these operational and safety considerations together with the cost per transaction.
Purchase to use the Filing Machine You Already Have
A small business or accounting company, or multi-entity enterprises shouldn’t be pushed to work with the same software.
The calculation that is most beneficial takes into account the number of filings and the number of entities that pay, workload for the entry of data, requirements for delivery to recipients as well as verification requirements and security requirements.
It’s not necessary to maintain a monthly, fixed cost for software when you are only doing seasonal compliance. Pay-perform allows the cost to fluctuate based on the volume of filing that is completed, which makes budgeting much more simple.