A business that file 15 information returns and the accounting firm that files 1,500, have very different workloads. The prices of tax software don’t always reflect this difference.
There is another wrinkle one more: information return filing is seasonal for most organizations. Smaller companies might use their file software extensively for a few months and only use it for a few months, and then stop using it the rest of the time.
This raises a critical issue regarding purchasing. Should an organization be paying per month for access? Or should the cost of its software follow how much it actually saves,
TaxFormHero employs the second method and charges per form, instead of charging sign-up fees or subscriptions.
Start with Your Real Filing Volume
Comparing a platform solely on its advertisements can lead to a false impression. Comparing platforms for filing based on their stated starting prices can be inaccurate.
TaxFormHero’s published pricing starts at $1.99 for each form. Graduated pricing reduces the cost per form across larger volume bands, and reaches $0.45 for forms with more than 1,000. Custom rates are offered to firms that submit large volumes of documents.
A recurring subscription isn’t essential for filers who are only occasionally involved. There are no seat licenses needed for an CPA who manages several clients.
Optional Services should be Optional
Not all filers require the same kind of service.
A business might be content with its current process of downloading recipient copies, and then distributing copies to them. Others may prefer the service provider to handle the distribution.
TaxFormHero 1099 eFiling platform allows users to download copies of the recipient for no cost. Print-and mail and electronic delivery services are available as a paid add-ons. TIN verification is another optional service.
This approach to modularization allows businesses to separate the expense of filing from that of supplementary services instead of automatically paying for features they do not require.
The magnitude of the issue is a major challenge for companies
When filing additional documents, cost isn’t the only factor to consider.
Accounting software can aid accountants who work with several businesses in organizing their EINs without a huge collection of accounts. TaxFormHero can handle multiple payers with a single login as well as bulk imports with Excel or CSV.
A broader 1099 filing and W-9 collection solution should reduce repetitive administrative work while maintaining clear separation between payer records. Importing structured data is a more efficient way to handle numerous returns for professionals.
Compliance and Security Belong in the Cost Discussion
The most inexpensive option for filing may not be the cheapest when it adds administrative work or does not have the capabilities that an organization needs.
TaxFormHero is IRS-authorized and supports electronic filing for 1099s, W-2s, and other tax returns. The company also states it uses the 256-bit encryption used for data in transit, and also offers two-factor authentication. The company says it plans to finish an independent SOC 2-Type I audit of the Security Trust Service standards by October 2025.
Owners of businesses should be aware of these safety and operational concerns together with the cost per transaction.
Buy to Use the Filing Machine You Have
Software economics shouldn’t be the same for small businesses accounting firms, large enterprises.
Calculations that are more accurate are based on filing volume, the number of paying entities and their workload and delivery requirements.
Software doesn’t have to be a monthly expense for the work of compliance that is seasonal. Pay-per-form permits costs to fluctuate based on the volume of filing that is completed making budgeting more simple.
