Business tax software aimed at home businesses can simplify the process of filing business tax returns. There are several different types of this software on the market, each of which provides different methods of assistance. Here are two of these solutions:
1. Prompt Software
The highest rated tax software solution generates a home business return based on a series of prompts. The software is designed specifically for businesses. After creating an account, the program asks you a series of questions about your business and your relationship to it. Your relationship is important because it determines what type of business you have and therefore which tax forms must be completed. Prompt software also allows you to automatically upload any W2s or other types of tax documentation, saving you the trouble of inputting pertinent information.
The benefit to this type of software is that it makes filing taxes a breeze. The drawback is that, no matter what the provider claims, there is no guarantee that you are completing the proper forms.
2. Accounting Software
This type of tax software doesn't so much as create a tax return for you, but simplifies the process of gathering the documentation necessary to complete a return. By permitting you to locate specific types of expenses or income, you can complete the necessary forms by yourself.
The benefit is that if you faithfully keep accounting records, you will be able to locate anything related to your business finances from a single source. The drawback to this type of software is that you must use it throughout the year or your records will be incomplete.