Halon S-Corp Tax Software
The S-Corporation has become quite the popular strategy for 2018. In fact, the new tax bill, the Tax Cuts and Jobs Act of 2017, creates even more reasons that the S corporation is quickly becoming the structure of choice for most small businesses going forward.
To read more about why you should be an S-Corporation, I have a blog about that here.
Once you decide to be an S-Corp, you also have committed to filing a new tax form each year for your business called the Form 1120S. Really it is a simple for if you make under $250,000 of revenue or have under $250,000 of assets. This is because you don’t have to complete several schedules because I guess the IRS thinks that is a waste of time.
Fine with us, the less we have to do the better.
So, if I have a small S corporation and you are looking for software to do this return (yes I know, you use Turbo Tax for your personal and you are thinking the same thing for your new shiny S corp.) there are some considerations you should be thinking about as you select your tool.
Your S-Corp software should be smart
And by smart, I mean like artificial intelligence smart. This thing should make you coffee, crack some eggs, and serve it to you with a side of K-1’s.. (That is s corp tax return humor by the way). It needs to read your data, make suggestions, and guide you to better options.
Now, Turbo Tax and other software can do that for your personal return, but for your business, better be ready for a let down. Software for your S corp has not caught up to things like for your Form 1040. In fact, you may be shocked to find out most of it is not even online (cough, cough, not to name names again but…. It rhymes with Turbo Fax….)
It assumes you are going to know what you are doing. And by know what you are doing, I mean, file multi-state returns with multiple capital assets that need to be both depreciated and amortized. You might have better luck passing the CPA exam.
Most of this legacy software is just a form filler. If you miss something that should be entered differently, its not going to warn you. Its just happy you entered anything. It got to check the box that you are doing great, however it has no idea you just created a $10K tax liability with that keystroke…
Oh crap, this is not sounding as easy is it? It is easy, but again, you need software that can keep you from making a mistake.
Your financial statements should be accurate
You know what S-Corp tax software says when the IRS calls and says your books were wrong so you owe more tax?
It sounds like a Justin Timberlake song and rhymes with “Fly be a sliver”…
For those of you not with the music times, that is “Cry me a river”….
But that’s true, software does not care if what you put in there was right or not. In fact, if your books are wrong and you file a tax return that looks fraudulent, even if by accident, you could be looking at handcuffs.
You need someone to look at your financials, a bookkeeper, a CPA, someone who knows this stuff. If you don’t have that, you need a software that can offer it. Seriously, this is the biggest problem with doing a tax return on your own. Its not that you can’t operate the tax software, its that what you are putting into the software is a toxic sledge of possible law enforcement… Yeah, not fun…
And finally your S-Corp tax software should help you all year long.
Did you know that most tax deductions opportunities are not possible after December 31 each year? I love hearing it when business owners tell me “Oh yeah, my guy finds me all kinds of deductions at tax season…”
No he doesn’t, he is just good at making you believe that he does. So if you are doing this on your own, and we think you can, then how are you going to do your tax planning each year? Simple, your tax software should help you do it right?
I mean, it knows all your information and what if it could connect with your bookkeeping all year and keep you writing off all that chedda!! Mmmm…. Nothing tastes better than sweet cheesy deductions all over ya!
Ok, that is silly and kind of gross but you get what I am saying, you need to be writing off these costs and reinvesting in your business. You need that money and your tax software should help you do it.
Sooo….. Yes, I think Halon Tax is better than everyone at delivering on these 3 ideas. Its why we built it. We help you find accountants to review your work, we have software that will guide you and review your tax returns. We have CPA’s that review the returns to make sure there are no red flags and we provide Tax Planner Pro software so you can tax plan all year long…
Its like chedda for your business! Ok, enough with the cheddar references but check us out. You may like it!