H&R Block for Small Business Initial Impression

Tailored Tax Solutions Catering to Small Enterprises

Navigating the intricacies of tax obligations, bookkeeping, and payroll can prove to be a challenging task for many small business owners. This is where the expertise of companies such as H&R Block® comes into play, providing invaluable support to entrepreneurs and freelancers alike. Leveraging the assistance of trusted online tax services or professional tax advisors can significantly streamline the often-overwhelming financial responsibilities.

A notable advantage of engaging with H&R Block lies in its adaptability. Clients have the freedom to choose from a spectrum of services, including acquiring software for independent tax filing, accessing in-person or virtual assistance for tax and payroll matters, or exploring a range of year-round financial solutions tailored to small businesses. Below, we delve into the array of tax, bookkeeping, and payroll options available through H&R Block for small enterprises.

Benefits:

• Assurance of 100% satisfaction guaranteed with desktop tax software (pre-filing)

• Flexible array of options encompassing both DIY and professional tax support

• Ability to e-file up to five federal returns using desktop software

• Inclusive provision of free audit support with desktop software

• Option to supplement with audit protection when engaging with tax professionals

Drawbacks:

• Incurred additional fees for extended download durations

• Absence of live tax assistance with desktop software

• Extra charge for e-filing state tax returns via desktop software

• Supplementary fee for Business Tax Audit Support when collaborating with tax professionals

H&R Block Small Business Services Overview

1. Price

• Self-Employed online: $92 (sale) $115 (regular) federal + $49 per state

• Premium & Business software: $89 (sale) $99 (regular) federal (1 state included) + $19.95 for additional state e-file

• Tax professional: $203+, depending on services

2. Guarantees: H&R Block provides assurances such as the Maximum Refund Guarantee, Accuracy Guarantee, and Satisfaction Guarantee, though the specifics may differ depending on the chosen service.

3. W-2 + Prior Year Import: Yes

4. Audit Support: Basic support is offered for understanding next steps in the online filing process. Audit support is available for a fee with online filing, while it’s complimentary with software purchase.

5. Access to Tax Experts: Users can access on-demand expert assistance during online filing and receive in-person or virtual support when working with a tax professional.

6. Other Services: H&R Block also provides additional services such as bookkeeping, payroll management, and assistance with business formation.

Tax Preparation Assistance for Small Businesses

For small business proprietors, H&R Block extends two avenues for assisting in the preparation of their business tax returns. The first option involves utilizing the company’s software, which is available in both desktop and online versions. Alternatively, entrepreneurs can opt to collaborate with a tax professional for the meticulous preparation of their paperwork intended for submission to the IRS.

1. Online Filing

Small business owners, including freelancers, contractors, and other self-employed individuals, have the option to electronically prepare their business tax returns through H&R Block’s online platform. The pricing structure for this service varies based on whether users seek access to expert guidance via chat or prefer a self-directed approach.

• Deluxe: Ideal for individuals with diverse income streams seeking expert tax advice.

• Premium: Tailored for investors, with additional support for rental property owners.

• Self-Employed: Suited for entrepreneurs aiming to claim small business expenses and deductions.

Furthermore, an extra charge applies for each state tax return filed.

2. Tax Software

H&R Block’s Premium & Business tax software presents a convenient solution for small business proprietors seeking to independently file their tax returns and associated forms, such as W-2s and 1099s. The software is available for download starting at $99, with the option to extend the download period for up to two years for an additional $5.99.

The federal price includes one state filing, with an additional $19.95 fee for each supplementary state e-file. Notably, the software permits up to five federal e-files, making it a cost-effective choice for business owners necessitating multiple federal return submissions.

In the event of dissatisfaction with the tax software, users can request a full refund before filing. Additionally, the desktop software encompasses complimentary support for audits, ensuring peace of mind for users facing potential scrutiny from tax authorities.

3. Collaborate with a Tax Expert

Some entrepreneurs prefer enlisting the expertise of a tax professional when navigating the complexities of annual tax filings. For those running S Corporations, C Corporations, Partnerships, or self-employed ventures, H&R Block extends three avenues for collaboration with seasoned tax professionals.

1. In-Person Consultation

2. Virtual Tax Preparation

3. File Drop-off at an Office

Commencing at $203, the costs for tax preparation vary based on the chosen option. It’s essential to schedule an appointment in advance for in-person consultations or virtual tax preparation.

Additionally, entrepreneurs have the option to augment their tax return with Business Tax Audit Support for an additional $75. This safeguard ensures that if the IRS opts to audit your S Corporation, C Corporation, or Partnership tax return, H&R Block tax professionals will diligently research, review, and respond on your behalf.

Bookkeeping Services

For small business owners seeking effective financial management solutions, services such as those offered by Block Advisors by H&R Block present invaluable assistance. These services encompass the meticulous tracking of both revenue and expenses, facilitating precise cash flow management. Additionally, they aid in forecasting business financials and ensuring compliance with tax obligations. According to H&R Block, their comprehensive bookkeeping services are competitively priced, potentially costing half as much as comparable accounting services elsewhere. Nevertheless, conducting thorough research is advisable before making any financial commitments.

Pricing

The pricing structure for small business bookkeeping services with Block Advisors by H&R Block is tailored to accommodate varying needs:

1. Self-service at $39 per month: Provides basic tools for managing income and expenses, allowing users to take charge of their financial tracking independently.

2. Full-service at $175 per month: Offers access to a dedicated accountant, includes an annual review of books, and provides additional support.

3. Premium at $299 per month: Includes all features of the Full-Service package, with added tools for advanced tracking, inventory management, estimates, and comprehensive financial analysis.

Both the Full-Service and Premium options grant clients on-demand access to expert guidance from a dedicated account manager. The Full-Service package further includes built-in quarterly support, monthly account reconciliation, the creation of financial statements, real-time transaction categorization, and preparation of company books for tax filing.

Block Advisors by H&R Block extends a complimentary 30-minute consultation to potential clients, facilitating a thorough discussion regarding the distinctions between the company’s two bookkeeping options. This consultation serves as an opportunity for businesses to evaluate which service aligns best with their needs and objectives.

Payroll Services

For small business owners, tax obligations are a continual aspect of operations, extending beyond the annual tax season. Depending on your business structure and whether you have employees, meeting tax requirements, including payroll tax filings, may be a monthly or quarterly responsibility. Even freelancers are accountable for their taxes.

Block Advisors, part of H&R Block, provides comprehensive payroll services designed to alleviate the tax burden on small business owners while ensuring compliance with regulations. This service caters to both self-employed individuals and small businesses with staff.

Pricing

The pricing structure for Block Advisors’ payroll services is tailored to suit different business needs:

• Basic Package: Priced at $59 per month, this package includes a dedicated accountant and standard reporting, making it suitable for sole proprietors.

• Plus Package: Priced at $79 per month plus an additional $10 per employee, this package offers added features such as year-end W-2s and 1099s, detailed reports, and simplified contract payments.

• Premium Package: At $140 per month plus $10 per employee, the Premium Package builds upon the Plus Package, offering additional benefits like workers’ compensation and retirement services.

To determine if Block Advisors’ payroll services are right for your business, a complimentary consultation is available. However, it’s important to note that these consultations are conducted by sales representatives. Therefore, conducting thorough research independently before making a decision is advisable.

Business Formation Services

Expanding its repertoire, H&R Block now extends its services to aid small businesses in selecting the optimal business structure tailored to their requirements. Among the commonly chosen structures are the limited liability company, S corporation, C corporation, and nonprofit. Each structure carries its own set of advantages, drawbacks, and tax implications. H&R Block stands ready to navigate you towards the most suitable choice for your specific business circumstances.

Pricing

The journey of business formation with Block Advisors commences at $149. This inclusive fee encompasses state formation as well. Moreover, as part of the process, you will secure an employer identification number, invaluable for tax obligations and other business identification necessities such as credit applications. It’s imperative to note that your state may levy additional charges.

Assessing H&R Block’s Small Business Services

H&R Block caters to the diverse needs of small business owners, including freelancers and contractors, by providing a comprehensive array of services. This adaptability ensures that a wider spectrum of business owners can potentially reap the benefits of H&R Block’s tax solutions.

However, exercising prudence dictates exploring various options and comparing them before reaching a final verdict. Specifically, when it comes to fee-based tax preparation services, evaluating the average cost of tax assistance can aid in assessing how H&R Block’s fees measure up.