The amount of work required by a business making 15 information returns to accounting firms that file 1500 returns is a vastly different. The cost of tax software doesn’t always reflect the difference in work load.
Another problem is that many businesses are dependent on the season to complete their annual information returns. For instance small-scale businesses might make use of its software intensively during a limited time period but use it sparingly throughout the year.
It poses the question about how to purchase. Should companies pay for access to software on a continuous basis or according to the quantity of files it produces?
TaxFormHero follows the second strategy that uses per-form pricing rather than signing-up fees, subscriptions, or seat licenses.
Start with Your Real Filing Volume
The comparison of filing systems based only on their starting prices is often misleading. Comparing filing platforms on the basis of their stated starting prices can be false.
TaxFormHero publishes a price of $1.99 per form. The cost per application decreases with the increase in volume and then reaches $0.45 after 1,000 forms. Businesses that file much larger volumes can discuss custom rates.
If you’re a frequent filer, there is no subscription to cancel at the conclusion of filing season. For an CPA with multiple clients there are no separate seats to buy due to the fact that additional employees must be involved in the process.
Optional Services should be Optional
Different filers may not require similar services.
A business may feel comfortable with the process currently in place of downloading copies of the recipient’s copy, and then dispersing copies. A different business may require the file provider to manage delivery.
With TaxFormHero’s 1099 e-filing platform, recipient copies can be downloaded free. As paid-for services, you can also choose electronic recipient delivery or print-and-mail. Verification of TINs is an additional service.
This approach is modular and allows companies to separate the expense of filing from the costs of additional services, instead of having to pay for features they don’t need.
Organizational issues are caused by scale
If you are filing more documents, cost isn’t the only factor to consider.
Accounting software can assist an accountant who works with multiple companies to organize their EINs without having a cluttered collection of accounts. TaxFormHero supports multiple payer entities under a single login, and also bulk imports using Excel or CSV.
The method that combines 1099 filing and W-9 collection should allow for a decrease in administrative tasks and still maintain a precise distinction between the payer’s records. For people who handle a variety of returns, importing organized data is a lot more efficient than completing forms in isolation.
Cost discussion should also include security and compliance
The most affordable option for filing doesn’t mean it’s the most expensive if it creates additional administrative work or lacks capabilities the organization requires.
TaxFormHero is an IRS-approved tax filing system that allows for electronically filing of 1099s and information returns as well as W-2s. The company also states it uses 256-bit encryption for data at rest and in transit and offers optional two-factor authentication. It says it expects to complete an independent SOC 2-Type I audit of the Security Trust Service requirements by the end of October 2025.
Businesses must consider these operational and security considerations along with the cost per return.
Purchase for the Filing System You Actually Have
Software economics shouldn’t be identical for small-scale businesses accountants, small businesses and big enterprises.
The method that is the most effective takes into account the number of filings and the number of entities that pay, workload for data entry, recipient-delivery needs the requirements for verification, security requirements.
It’s not necessary to maintain a monthly, fixed cost for software when you are just doing seasonal compliance. A pay-perform model allows the cost to increase and decrease as the work is filed which can make budgeting considerably easier to u
