Best Corporate Tax Software

Corporate tax software allows businesses to streamline the tax filing process. Accountants within an organization can use these solutions to calculate taxes for company-wide transactions, file returns electronically, and store tax-related forms for both employees and the company itself. Some corporate tax software programs also offer features for determining exemptions, integrating with other accounting software, or syncing with company accounts to automatically import transaction data.

To qualify for inclusion in the Corporate Tax category, a product must:

  • Calculate taxes for large-scale financial accounts
  • Offer capabilities for filing tax reports
  • Provide latest rules and tax rate information

Corporate Tax Software Grid® Overview

The best Corporate Tax Software products are determined by customer satisfaction (based on user reviews) and market presence (based on products’ scale, focus, and influence) and placed into four categories on the Grid®:
  • Products in the Leader quadrant are rated highly by G2 Crowd users and have substantial Market Presence scores. Leaders include: Avalara AvaTax, TurboTax Business, and Vertex O Series
  • High Performers are highly rated by their users, but have not yet achieved the Market Presence of the Leaders. High Performers include: Vertex Cloud
  • Contenders have significant Market Presence and resources, but have received below average user Satisfaction ratings or have not yet received a sufficient number of reviews to validate the solution. Contenders include: H&R Block At Home Premium & Business
  • Niche solutions do not have the Market Presence of the Leaders. They may have been rated positively on customer Satisfaction, but have not yet received enough reviews to validate them. Niche products include: inDinero
G2 Crowd Grid® for Corporate Tax
Leaders
High Performers
Contenders
Niche
Avalara avatax
Turbotax business
H r block at home premium business
Vertex cloud
Indinero
Vertex o series
Market Presence
Satisfaction
Linked in no background

What You Should Know About Corporate Tax Software

This type of software is specially designed for businesses and is not a good option for individuals. While companies of all sizes and from any industry can use it, corporate tax software is usually more beneficial for businesses that need to comply with complex tax regulations across multiple locations and manage large volumes of transactions that are impacted by these regulations.

Buyers considering this type of software should try to evaluate if it is worth the investment. This can be accomplished by estimating the time it takes employees to manage taxes and the total amount of penalties incurred due to noncompliance. A corporate tax solution will only be effective when the time saved by a business outweighs the investment in this type of software.

Another critical factor to take into account when evaluating corporate tax software is the growth of the company and how it will impact its tax-processing activities. For instance, a company that intends to expand into new markets on other continents will need to make sure that the solution chosen helps the business comply with tax regulations specific to the new locations.

Why Use Corporate Tax Software?

While companies tend to consider tax management a necessary evil and a burden, many businesses are embracing corporate responsibility principles of transparency and accountability to differentiate themselves from competitors.

Compliance — There are many penalties that companies may incur for failure to file or failure to pay corporate taxes. Criminal liability is another consequence of noncompliance and can lead to the seizure of assets and even jail time.

Compliance is also crucial for the reputation of a company. Public companies need to be particularly careful when it comes to tax compliance because they are more likely to be subject to scrutiny by shareholders, customers, and the public. Research shows that “compliance is positively related to being publicly traded and in a highly regulated industry so that characteristics that assure public disclosure of information also tend to encourage better tax compliance.”

Accurate financial information — Aside from the obligation to comply with financial regulations, having accurate financial information is critical to the profitability of a company. Even small changes in taxes can have a significant impact on the revenue of a company when applied to thousands (or tens of thousands) of transactions.

Avoid tax processing errors — Tax processing errors are usually caused by inefficient business processes, outdated technology, and poor data quality. Errors can lead to penalties for noncompliance but can also take a lot of time and effort to fix. According to a Deloitte study, tax departments of companies that have not adopted technology spend up to 75% of their time on tax compliance, while businesses who use software can reduce the time spent on compliance to 20%.

Add economic value and contribute to society — It is well known that tax money funds most government investments. Corporate responsibility is also becoming a major priority for many companies, mostly due to the pressure of new generations of customers. By accurately managing and filing taxes, companies contribute to the economy and society and forge relationships with customers and consumers based on trust and transparency.

Take advantage of tax breaks, credits, and exemptions — Many companies that could benefit from tax breaks are not aware of the rules and procedures required (or are discouraged by their complexity). Corporate tax software can help with providing information on what options are available for each company depending on its size, industry, or other characteristics that may allow them to qualify for tax breaks.

Kinds of Corporate Tax software

Like most financial software, this type of software can be delivered in the cloud or implemented on premises; in addition, vendors offer it as a standalone solution or packaged with other software. Each option has pros an cons that buyers need to take into account. As a rule, standalone cloud solutions are more affordable but not very sophisticated, while software suites are more expensive but offer more robust functionality.

Who Uses Corporate Tax software?

Accounting professionals who are responsible for tax management use this type of software to determine what taxes need to be processed, how, and when.

Executives, such as CFOs and CEOs, use corporate tax software to monitor activities related to tax management and ensure that the company complies with tax regulations.

Independent accountants use this types of software to help their customers with tax management compliance.

Corporate Tax Software Features

Corporate tax software comes in different flavors, and vendors tend to offer various tools or versions of the same solution for different needs. The features offered can vary by industry or company size and can be categorized into two main groups: basic and advanced functionality.

All corporate tax solutions should cover the essential features described above to qualify for inclusion in this category.

Basic features:

Tax rules and rates management functionality is a must for this type of software. It is also important to adjust rates and update rules based on any changes made by local, state, or national governments.

Workflows and schedules allow companies to plan all activities related to tax filing and payment, thus avoiding penalties for noncompliance. This type of functionality also helps users stay organized and productive.

Tax filing features allow users to submit all information and the documents required by law. It should include checklists for each tax category to ensure that everything is ready before filling.

In addition, corporate tax software includes information on tax breaks, how companies can determine if they qualify, and procedures to apply and track applications.

Reporting and analytics features are critical for this type of software because they allow users to track the efficiency of their activities and the accuracy of the tax information.

Reporting and analytics features are critical for this type of software because they allow users to track the efficiency of their activities and the accuracy of the tax information.

Advanced features:

Consolidation of tax information from multiple business entities across various locations is vital for medium to large companies.

Risk assessment and management allows businesses to identify and address potential issues that can lead to noncompliance.

Financial consolidation is used to gather tax information from multiple ERP and accounting systems across various locations.

Trends Related to Corporate Tax Software

While accounting software or accounting modules of ERP solutions usually offer some features for corporate tax management, medium to large companies will probably need advanced features. The main players in the ERP and accounting software sphere include corporate tax features in their offerings, but they focus mostly on large businesses. As a result, the SMB market was underserved for decades, until the cloud and the consumerization of IT allowed smaller vendors to fill this gap.

Most vendors providing ERP and accounting solutions for SMBs now have partnerships with cloud providers of tax management software. This strategy is more beneficial for vendors and their customers than developing new modules or solutions for tax management.

Potential Issues with Corporate Tax Software

Integration with accounting is critical but isn’t always easy for several reasons. Many companies still use old accounting software that can seldom integrate with corporate tax software, which is often delivered as a cloud model. In addition, the chart of accounts used by companies does not always include GL accounts for all types of taxes. This makes it difficult for companies to match the fields in their accounting system with those used by corporate tax management solutions.

Limited internationalization is a significant issue for companies that expand into new markets and geographical locations. For instance, a company that does business in the U.S. and Canada but also intends to open offices in Europe will not benefit from a corporate tax management solution that only covers North American tax regulations.

The lack of user expertise can impact the adoption of corporate tax software. Despite significant technological advancements, this type of software does not miraculously solve all corporate tax challenges. Its users still need to have the knowledge and experience to understand how to better implement and use the software.

Software and Services Related to Corporate Tax Software

Corporate tax software is delivered as a standalone solution or as part of a corporate performance management suite. The latter option is more beneficial for medium to large companies but can be too complicated and cumbersome for SMBs. Smaller businesses are more likely to benefit from standalone corporate tax software, which is typically more affordable and easier to use.

Companies of all sizes often choose to outsource tax management operations to independent accountants or financial consulting firms. Businesses that have the expertise to manage local taxes rely on consultants to ensure compliance when expanding into new geographical locations or when entering new markets.

Compare Corporate Tax Software
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    Corporate Tax reviews by real, verified users. Find unbiased ratings on user satisfaction, features, and price based on the most reviews available anywhere.

    With TurboTax Business, you don’t need to know a thing about business taxes.


    Vertex® Indirect Tax O Series® combines industry leading tax research with the latest software technology providing your tax department with the tools necessary to deliver accuracy and consistency in every transaction, every day. Only Vertex brings together the tax process acumen, technology innovation, and trusted industry partnerships to create an end-to-end global tax solution. Choose Vertex Indirect Tax O Series to reduce your audit exposure and free up your tax department to bring more value to your company. With Vertex O Series, you’ll manage tax on both sales and procurement transactions more efficiently and effectively. Plus, the system provides data management tools and custom reporting capabilities to support audit preparation and strategic financial decision making. Vertex O Series can not only reduce your audit risk, but also give you greater visibility into your tax processes. The end result is a tax department that provides higher value to the organization.


    Avalara AvaTax helps thousands of customers accurately calculate sales and use taxes based on up-to-date tax data. AvaTax provides 580+ integrations with the most commonly-used business applications including ERP, POS, Ecommerce, Billing and CRM, to support quick deployment. AvaTax also handles VAT, GST, and other transactional taxes for millions of products and services across thousands of tax jurisdictions. The solution also supports connectivity to custom applications with a well-documented and robust developer toolkit. AvaTax’s cloud-based software is easy-to-use and fast-to-implement, ensuring a rapid return on investment.



    Vertex Cloud Indirect Tax is built upon Vertex Inc.’s more than 35 years of tax expertise and position as the leading provider of corporate tax software and services. By enabling calculations and returns in a single, cloud-based solution, offering flexible pricing with no overage fees, Vertex meets the sales and use tax automation needs of growing businesses. From returns-only processing, tax calculations, and signature-ready PDF returns to outsourcing services that include returns filing and payment processing, Vertex Cloud provides a proven and reliable solution for businesses looking to save time, effort, and risk associated with sales and use tax calculation, returns, remittance, and compliance.


    One integrated accounting, tax, and payroll solution to help you manage your business and get better visibility into your financials.


    BNA Fixed Assets™ dramatically reduces the effort required to effectively and accurately manage, depreciate, and track fixed assets. BNA Fixed Assets™ enables tax and accounting professionals in companies of any size to automate and manage the complete fixed assets lifecycle – from construction and acquisition through disposal.


    Corptax transforms the business of tax through technology, business process expertise and award-winning support. Clients achieve breakthrough tax performance using the first and only single-platform solution on the market offering unmatched automation to align processes and workflows, enhance transparency, improve accuracy and lower risk across the entire corporate tax lifecycle. For more than 40 years, Corptax has supported the evolving tax needs of leading organizations in many industries. Today, Corptax helps over 1,000 clients in 100 countries, including 50% of the Fortune 500 and 60% of the Fortune 100, nationally.


    A done-for-you accounting solution that includes automated data entry, a professional accountant, and financial reports and dashboards that benchmark your business with your peers.


    Longview makes performance software for the Now business realities. Hundreds of thousands of business leaders from Global 2000 companies, operating in more than two hundred countries, leverage Longview daily to make strategic and immediate business decisions based on Now business realities. Our performance management software drives the advantage of planning with critical insights into vast and disparate data points. Longview brings budgeting, forecasting, tax reporting, analytics and the financial close to its single platform for out of the box performance management.


    Oracle Tax Reporting Cloud is a tax-owned solution that works with your finance systems to help deliver effective, efficient, and transparent corporate tax processes including tax provision and country by country reporting (CbCR).


    Sales Tax DataLINK specializes in all your sales and use tax needs from tax calculation to tax reporting. Our patented software is the first of its kind: Simple, Accurate, and Customizable. Unlike other sales tax software companies, we are dedicated to providing direct control between a business and their tax compliance. We offer complete transparency through our web-based software which produces live updates 24/7 to keep you informed and in control at all times. For example, FileLINK, our most popular tax reporting software, is a multi-state filing solution that generates more revenue with reduced costs and improved realization rates. FileLINK lets you map client’s unique tax data in minutes without manipulation. Simply upload data and on-screen alerts pinpoint tax data issues. You can correct issues with a single click, while real-time reconciliation and validation ensure correct and accurate filing. You can even manage credits and adjustments or create overrides your client’s tax engine can’t handle. All with just one software. Continuing the innovation our software has brought to the industry, Sales Tax DataLINK is fully committed to providing the best possible service so your business can be optimally successful. We believe that software shouldn't make tax compliance impersonal, so we made empirical service a top priority. Sales and use tax can actually be easy with our advanced software and our localized, personal customer service. Sales and use tax like you've never seen it before: easy, quick, and competitively priced.


    SimpleTax is a HMRC recognised software, designed to be a simple way of calculating and submitting a self-assessment return.


    The Sovos Intelligent Compliance Cloud includes global tax determination (Sovos Global Tax Determination), exemption certificate management (Sovos CertManager), sales and use tax filing (Sovos Sales and Use Tax Filing), invoice reconciliation (Sovos Use Tax Manager), VAT reporting (Sovos VAT Reporting), electronic invoicing (Sovos eInvoicing) along with tax information reporting for 10-series forms (Sovos 1099), and ACA (Sovos ACA).


    Support centralized tax configuration, management, and reporting.


    A CLEAR AND EFFICIENT PATH TO OBTAIN THE BENEFIT


    Diagnostax is experts in tax diagnostics providing a comprehensive, web-based, tax diagnostics toolkit focussed in three key tax areas: HNWs, Unincorporated Businesses and Corporates.


    DisclosureLINK is the only available software for automating voluntary disclosure accounting.

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    FileLINK‘s intuitive, point-and-click dashboard gives you more control and more safeguards over the filing process, streamlining your work. Simply upload your tax data files without file restrictions.

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    GST Keeper offers a comprehensive range of tax compliance solutions.

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    Komplitax is a GST solution for tax filing, invoicing and accounting.


    RateUtil enhances your ERP for peak tax performance at a lower cost. It’s the just-right option between manual rating and expensive third party tax engines.

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    RecoveryLINK is the only available software for automating the accounting tasks associated with reverse audits.

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    The Symmetry Tax Engine®(STE) calculates payroll withholding taxes for: Federal, FICA (Social Security and Medicare), state withholdings for all 50 states, Puerto Rico and US Territories, and various other payroll related withholdings.


    TaxRaahi offers an ITR Software, designed to detect which return is needed to file.


    A web-based tax calculation solution

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