Tax Software Showdown: TurboTax vs. H&R Block

I'm David Eckoff. I'm on a mission to help businesses in Virginia-Highland use social media and technology to their advantage.

This week we'll explore options for preparing your business taxes with local tax professionals; and with TurboTax and H&R Block software.

Tax Professionals Located in Virginia-Highland

I spoke with two tax preparers in the Virginia-Highland area: Philip Autrey, senior tax advisor at H&R Block, at 696-B Cleburne Terrace, NE; and Taylor Green, CPA, located at 750 Ponce de Leon Place, NE.

Autrey is in his thirteenth year preparing taxes at H&R Block and specializes in small business. 

"Keep good records. Pay quarterly. And remember that corporate taxes are due March 15, not April 15," Autrey told Patch.

The cost to prepare a corporate return at the H&R Block office depends on the number of certain entries and forms. Budget $400 or more.

Taylor Green has an accounting degree and a Masters in Accounting with a concentration in tax. He is also a certified public accountant.

"Start early with your tax professional," Green said. "Ensure your bookkeeping is in order so your tax preparation is painless and you can see where you are during the year."

The most simple corporate return here could cost $600, with more complex returns $2,000 to $3,000 or higher.

Battle of the Tax Software

TurboTax Business and H&R Block At Home Premium & Business are software packages that enable you to prepare your taxes for corporations, partnerships and LLCs.

Unlike H&R Block, TurboTax Business, does not include software for personal tax returns, sole proprietorships or independent contractors. You have to buy a separate package.

TurboTax Business costs $129.95 direct from Intuit. H&R Block At Home Premium & Business is less expensive costing just $79.95 direct from H&R Block. They cost less from retailers such as Amazon.com.

Both offer 60-day money-back guarantees.

What Their Executives Say

I asked both companies what makes their product better than the competition.

"What makes us successful is we walk a person through using an interview, which makes the customer feel comfortable," Bob Meighan, Vice President at TurboTax, said. "We hand hold you through the entire process. That's what customers are looking for. Plain English questions and guidance."

What about H&R Block?

"Our business users are generally the most savvy we have and they know their P&L," Mark Minor, Senior Product Manager at H&R Block, said. "They can use the interview path or go straight to the forms. You choose your own adventure and approach. Some people want to be led through and some want to drive."

My Twitter Network Weighs In

Atlanta resident and frequent visitor to Virginia-Highland Shane Pike has a strong opinion.

"I never heard anything good about H&R Block," Pike told Patch via Twitter. "I don't view them as business and sure don't see them as a software company. I like TurboTax because it lets a guy like me do his own taxes quickly and easily. I tried H&R Block software once and it was a nightmare. I was constantly lost."

Other people in my network had good things to say about TurboTax. No one recommended H&R Block software.

Download, Install and Update

Next, I download and install the software for TurboTax and H&R Block.

For TurboTax, this was quick and easy.

For H&R Block, installation is not as user friendly. For example, the name of one the files in the instructions doesn't match the actual name of the file I need to click on. Small details like this can make the difference between easy and confusing.

After installation, both programs download automatic updates of the program code and federal tax forms.

With TurboTax, this is effortless on my part.

With H&R Block, I inexplicably have to repeat the same process twice.

On-screen Interviews

TurboTax asks me questions. I type my answers and click the "Next" button to advance through the interview. I never have to go into the tax forms, which makes me happy.

In contrast, I find the interview by H&R Block software inefficient and annoying at times. For example, when I answer no to a question, and click next, H&R Block brings me to a worksheet to complete - as if I had answered yes.

Other Differentiators

I preferred the online help format for TurboTax.

I like that TurboTax enables me to save K1 forms as PDF files, to e-mail to my shareholders, saving me a trip to the post office. H&R Block does not allow me to send the K1 forms electronically.

With TurboTax, I'm able to E-file my federal return for business. H&R Block does not allow me to E-file my corporate return. That's a big deal.

Final Grades

TuboTax Business: TurboTax made doing my taxes easy, efficient and enjoyable. Points off for higher price but otherwise a great product. Overall grade: A-

H&R Block At Home Premium & Business: I disliked the usability of the H&R Block software and the customer experience. Overall grade: C-

As for tax professionals vs. software, Meighan of TurboTax sums it up well.

"Tax accountants fill a valuable role," Meighan said. "There are a lot of small business owners with relatively uncomplicated returns. Software will interview them like an accountant would. If you have a complex return, use an accountant."

The bottom line: In the battle of tax preparation software, TurboTax Business wins hands down. If you have a more complicated return, hire a tax professional.

Connect with Virginia-Highland Patch on Facebook and on Twitter at @VaHiPatch.