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Small Business

Business owners: Here are the money-saving features to look for when choosing accounting software

Staying organized is the best way for business owners to save on taxes. These tools can help.

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A widely touted benefit of running a small business is access to tax write-offs that are generally unavailable to W-2 employees — like business dinners, business travel and rent if running your business from home.

But to really maximize these tax savings, business owners have to be organized. Having accurate numbers, maintaining receipts and keeping financial books in order will make tax time easier, reduce the likelihood of being audited for a mistake and save as much money as possible.

Here are organizational features to look out for in accounting software.

What we'll cover

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Integrations with payment platforms

Being able to sync your desired payment platforms to your accounting software can make a big difference when it comes to accuracy and saving time around tax season.

Look for integrations with the platforms you're using to collect customer and client payments, whether it's PayPal, Square or others. QuickBooks, for instance, lets you sync payments from Square, PayPal, Etsy, Shopify and more. It also syncs to your credit cards and bank accounts so you can track what's going out, making it even easier to stay organized.

QuickBooks

On Intuit's site
  • Cost

    Costs may vary depending on the plan selected but take advantage of a limited time offer - 50% off for 3 months

  • Standout features

    Tracks your business expenses as they happen, as well as your income. Users can use app to do invoicing, accept payments, manage their cash flow, maximize tax deductions, track travel miles, run reports, send estimates, manage bills and 1099 contractors, plus pay employees

  • Categorizes your expenses

    Yes

  • Links to accounts

    Yes, bank and credit cards, plus third-party apps like PayPal and Square

  • Availability

    Accessible from any web browser and also offered in both the App Store (for iOS) and on Google Play (for Android)

  • Security features

    Verisign scanning, password-protected login, firewall protected servers and the same encryption technology (128 bit SSL) used by the world's top banks. QuickBooks also offers multiple permission levels that you can set for additional users' access

Terms apply.

Pros

  • Offers a 30-day free trial
  • Syncs to your bank accounts, credit cards and third-party apps like PayPal and Square
  • Offers real-time dashboards so you can stay updated on all financial transactions related to your business
  • The most basic "Simple Start" plan tracks income, sales and expenses, organizes receipts, creates invoices, helps you prepare your taxes, categorizes your business and personal trips, offers a QuickBooks Cash account, runs reports like P&Ls and balance sheets and includes 1 user
  • "Essentials" plan, in addition to the above, helps you pay your bills, clock employee time and billable hours and includes up to 3 users
  • "Plus" plan, in addition to the above, lets you oversees projects, track inventory and includes up to 5 users
  • "Advanced" plan, in addition to the above, provides business analytics and insights, speeds up transactions, gives users access to VIP service QuickBooks Priority Circle that includes a dedicated account team and free online QuickBooks training includes up to 25 users. QuickBooks offers a fourth "Self-Employed" plan for freelancers
  • Security features include Verisign scanning, encryption technology (128 bit SSL) used by the world's top banks and customized access for other users

Cons

  • Some user reviews complain of glitches in app and a not so user-friendly interface

Integrations with your tax software

One of the easiest ways to stay organized is to let your software do the heavy lifting for you when it comes to uploading business transactions. These days, platforms like TurboTax for Business allow you to connect your QuickBooks account (or other accounting tools) to easily import data on your business income and transactions. This way, you don't have to manually sit there going back and forth between a spreadsheet and your tax filings.

TurboTax for Businesses

On TurboTax's site
  • Price

    Costs vary depending on plan

  • Businesses supported

    S Corp, C Corp, partnerships, sole proprietors

  • Live support

    Available for an additional charge

Terms apply.

Pros

  • Fully integrates with QuickBooks
  • TurboTax Expert Assist provides on-demand advice from a tax expert
  • Accuracy and maximum refund guarantees

Cons

  • More costly than other software programs
  • Expert assistance costs extra

*Click here for TurboTax offer details and disclosures

You can even go as far as to use a business checking account that integrates with accounting tools to save you from pouring over bank statements at the last minute. Mercury integrates with bookkeeping and accounting tools like QuickBooks, Xero and NetSuite.

Mercury

On Mercury's site
  • Special offer

    None

  • Monthly maintenance fee

    $0

  • Minimum deposit to open

    $0

  • Minimum balance

    $0

  • Annual Percentage Yield (APY)

    Up to 4.43% APY for users of Mercury Treasury, the investment advising arm of Mercury

  • Free ATM network

    Mercury doesn't charge ATM fees, however, the ATM operator may charge a fee

  • ATM fee reimbursement

    Yes, see here for more details

  • Small business perks

    Offers startup guides, users who sign up for the IO Credit Card can earn 1.5% cash back

  • Overdraft fee

    $0

  • Mobile check deposit

    Yes

Terms apply.

Pros

  • No monthly fees, balance minimums or overdraft fees
  • Offers a debit card
  • Mobile check deposit available
  • IO credit card offers 1.5% cash back on purchases
  • Users can send domestic and international wire transfers in over 30 different currencies
  • USD international wires are free to send
  • Integrates with several bookkeeping and accounting tools

Cons

  • No cash deposits allowed
  • No APY earned for checking account balances

In any case, manually importing information can increase the chances of making a costly error.

On-demand advice

Working with a dedicated CPA is the best way to get tailored advice and discuss your personal tax strategy throughout the year — not just during tax time. CPAs can help you figure out how to record and manage your transactions throughout the year, how to pay and plan for certain expenses, how to keep track of the receipts for things you want to write off on your taxes and administering tax documents to freelancers or employees you hire throughout the year.

However, not everyone can afford consistent, ongoing expert help like this. In this case, sometimes the next best option is to see if there are any similar services offered by the platforms you're using.

Sometimes this service may be an add-on you pay extra for, but it can still be less expensive than the annual fee you'd have to pay a dedicated accountant.

This is usually a feature offered by tax platforms like TaxAct and H&R Block since they're more focused on taxes. TaxAct provides one-on-one support from tax experts and H&R Block offers on-demand support with their Online Assist plans. This may not be designated ongoing support throughout the year, but getting some professional help for a complex business situation is still better than none at all.

TaxAct

  • Online plans

    Free, Deluxe, Premier, Self-Employed

  • Free version

    Federal returns (Form 1040 and limited credits only)

  • Guarantee

    Maximum refund guarantee and $100,000 accuracy guarantee

  • Live support

    TaxAct Xpert Assist is available starting at $45

  • Tax refund advance loan

    Yes

Terms apply

Pros

  • More affordable than other paid software programs
  • Free tier can process both federal and state returns
  • Refund advance available
  • Accuracy guarantee covers legal fees up to $100,000
  • All plans come with live support from tax experts

Cons

  • Returns with freelance or investment income don't qualify for free plan

H&R Block

  • Price

    Price varies depending on plan

  • Businesses supported

    S Corp, C Corp, sole proprietorships, partnerships, self-employed

  • Live support

    Available with some plans

Terms apply.

Pros

  • Unlimited on-demand chat or video support with Online Assist plans
  • Over 11,000 branches nationwide
  • 100% accuracy and maximum refund guarantees

Cons

  • Pricier than many other options
  • Speaking with a tax expert costs more for federal returns
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Business Owners: Features To Look For In Accounting Software

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