Tax season can be a stressful time for small business owners, but the right accounting software can make all the difference. With deadlines looming in April 2025 for U.S. businesses, having a tool that simplifies tax preparation, ensures compliance, and organizes financial data is essential.
Cloud-based accounting platforms not only streamline the process but also provide real-time insights to avoid last-minute surprises. In this article, we’ll explore how four popular accounting software solutions: QuickBooks Online, FreshBooks, Zoho Books, and Patriot Accounting can help you prepare for tax season like a pro.
We’ll compare their tax-related features, usability, pricing, and support, along with practical tips to keep your finances tax-ready, so you can focus on running your business.
Why Accounting Software Matters for Tax Season
Accounting software plays a crucial role during tax season by automating data organization, calculating taxes, and generating reports needed for filings. For small businesses, this means less time spent on manual calculations and more time focusing on growth.
Features like expense tracking, sales tax calculation, and 1099 preparation help ensure compliance with IRS requirements, while integrations with tax professionals streamline collaboration. In 2025, the IRS continues to emphasize digital record-keeping, making cloud-based tools even more valuable for their accessibility and security.
Whether you’re a freelancer, retailer, or service provider, the right software can save you from tax season headaches.
QuickBooks Online: Best for Comprehensive Tax Management
Overview: QuickBooks Online, developed by Intuit, is a leading cloud-based accounting software for SMBs, known for its robust tax features and integrations. With over six million subscribers as of 2025, it’s a go-to for businesses needing detailed financial management.
Tax Features:
Sales Tax Calculation: Automatically calculates sales tax based on location and generates reports for tax filings.
Expense Tracking: Categorizes expenses and syncs with bank accounts, ensuring all deductions are tracked for tax purposes.
1099 Preparation: Prepares and e-files 1099 forms for contractors, available in all plans.
Reporting: Offers tax-specific reports like profit-and-loss and expense summaries, with export options for tax professionals.
Integration with TurboTax: Seamlessly exports data to TurboTax for direct tax filing, a unique feature for Intuit users.
Pricing: Plans range from $35/month (Simple Start) to $235/month (Advanced), with a 30-day free trial or 50% off for the first three months.
Usability for Tax Prep: QuickBooks’ interface is user-friendly, with a dashboard showing tax-related metrics like expenses and income. Setup involves connecting bank accounts and categorizing transactions, with tutorials to assist. The mobile app supports on-the-go tracking, ensuring all tax data is up to date.
Best For: Small businesses needing comprehensive tax management, especially those already using Intuit products like TurboTax for seamless filing.
FreshBooks: Best for Freelancers and 1099 Filings
Overview: FreshBooks, launched in 2003, is a cloud-based accounting tool for freelancers and small service-based businesses, with a focus on invoicing and time tracking. It’s widely used by independent contractors preparing 1099 filings.
Tax Features:
Expense Tracking: Automatically imports expenses and categorizes them, with options to mark expenses as billable for tax deductions.
Sales Tax Calculation: Calculates sales tax on invoices and generates VAT return forms (MTD-compliant in the UK), though it doesn’t estimate quarterly taxes.
1099 Support: Generates 1099 reports for contractors, simplifying tax reporting for freelancers hiring subcontractors.
Reporting: Basic tax summaries and profit-and-loss reports help prepare for filings, with advanced reporting in the Premium plan.
Accountant Access: Available in Premium and higher plans, allowing tax professionals to review data directly.
Pricing: Plans range from $19/month (Lite) to $60/month (Premium), with a custom Select plan. A 30-day free trial is available.
Usability for Tax Prep: FreshBooks’ intuitive interface makes tax prep easy, with a simple setup for tracking income and expenses. The mobile app allows receipt capture and expense logging, ensuring no deductions are missed, though report viewing is desktop-only.
Best For: Freelancers and small service businesses needing simple 1099 preparation and expense tracking for tax season.
Zoho Books: Best for Budget-Friendly Tax Prep
Overview: Zoho Books, part of Zoho Corporation since 2011, offers a cloud-based accounting solution with a free plan for businesses earning under $50,000 annually, making it a budget-friendly option for tax prep.
Tax Features:
Sales Tax Calculation: Automatically calculates sales tax and generates 1099 reports for contractors, though it lacks quarterly tax estimation tools.
Expense Tracking: Imports bank transactions and categorizes expenses, with receipt uploads for tax-deductible expenses.
Bank Reconciliation: Smart rules ensure tax-ready records by matching transactions accurately.
Reporting: Over 40 reports, including profit-and-loss and general ledgers, with custom reports in higher plans to prepare for tax filings.
Compliance: Supports Making Tax Digital (MTD) in the UK, ensuring compliance with local tax laws.
Pricing: A free plan is available, with paid plans from $15/month (Standard) to $240/month (Ultimate). A 14-day free trial of the Premium plan is offered.
Usability for Tax Prep: Zoho Books’ setup is straightforward, with a dashboard showing receivables, payables, and expenses for tax prep. The mobile app allows expense tracking and invoice management, keeping tax data organized on the go.
Best For: Budget-conscious small businesses needing affordable tax preparation tools with strong automation and compliance features.
Patriot Accounting: Best for Simple Tax Reporting
Overview: Patriot Accounting, developed by Patriot Software since 2002, is a cloud-based solution for small businesses and nonprofits, focusing on simplicity and affordability, with U.S.-specific tax features.
Tax Features:
Sales Tax Calculation: Calculates sales tax based on state laws, ensuring accurate tax collection for filings.
1099/1096 Forms: Generates forms for contractors, with optional e-filing services for tax compliance.
Expense Tracking: Imports bank transactions and stores receipts, helping track deductions for tax purposes.
Reporting: Basic reports like profit-and-loss and accounts receivable aging provide tax-ready insights, though customization is limited.
Payroll Integration: Optional Patriot Payroll integration ensures payroll taxes are tracked, simplifying W-2 and 1099 filings.
Pricing: Plans are $20/month (Basic) and $30/month (Premium), with a 30-day free trial. Payroll integration costs $10-$30/month plus $4 per employee.
Usability for Tax Prep: Patriot’s simple interface makes tax prep accessible, with a quick setup for tracking expenses and generating reports. However, the lack of a mobile app means browser access for on-the-go updates, which may be less convenient.
Best For: Small U.S.-based businesses needing basic tax reporting and 1099 preparation at a low cost, especially those with payroll needs.
Tips for Tax Season Success with Accounting Software
Start Early: Use your software to categorize expenses and track income throughout the year. QuickBooks Online and Zoho Books make this easy with automated bank imports and categorization.
Leverage Tax Reports: Generate profit-and-loss and expense reports well before deadlines. QuickBooks Online offers the most robust tax-specific reports, while FreshBooks and Patriot provide essentials for freelancers.
Track Deductions: Capture all deductible expenses—like travel or office supplies—using receipt uploads in FreshBooks or Zoho Books, ensuring you maximize deductions.
Prepare 1099s: If you hire contractors, use FreshBooks, Patriot, or Zoho Books to generate 1099 forms. QuickBooks Online also offers e-filing for added convenience.
Collaborate with Your Accountant: Share access with your tax professional using QuickBooks Online’s or FreshBooks’ accountant access features (Premium plans) to streamline filings.
Stay Compliant: Ensure your software supports local tax laws—Zoho Books is MTD-compliant for UK businesses, while Patriot focuses on U.S. tax requirements.
Which Software Should You Choose for Tax Season 2025?
For Comprehensive Tax Management: QuickBooks Online is the best choice for its detailed tax features, TurboTax integration, and robust reporting, ideal for businesses with complex tax needs.
For Freelancers and 1099 Filings: FreshBooks excels for freelancers with its simple 1099 preparation and expense tracking, though client limits may require upgrading.
For Budget-Friendly Tax Prep: Zoho Books offers a free plan and affordable pricing, with strong automation and compliance features for small businesses on a budget.
For Simple Tax Reporting: Patriot Accounting suits U.S.-based businesses needing basic tax reporting and 1099 forms at a low cost, especially with payroll integration.
Final Thoughts
Preparing for tax season 2025 doesn’t have to be daunting with the right accounting software. QuickBooks Online provides the most comprehensive tax tools, making it ideal for businesses needing depth and integration.
FreshBooks is perfect for freelancers focused on 1099 filings, while Zoho Books offers unbeatable value for budget-conscious users. Patriot Accounting keeps things simple for small businesses with basic needs, especially in the U.S. Take advantage of free trials—offered by all four platforms—to test which tool best fits your tax prep workflow.
By starting early, leveraging automation, and keeping your records organized, you’ll be ready to tackle tax season like a pro, leaving more time to grow your business in 2025.