70 Percent of Small Businesses Still Don’t Use Tax Software


Despite arguably making lives easier, tax software is not used by a majority of small businesses. That’s according to a new report by Office Depot (NASDAQ:ODP), the office supply retailing company.

The company’s latest Small Business Index survey (PDF) reveals 70 percent of small business owners did not use tax software when they filed their taxes in 2016.

What’s more, 24 percent of large small businesses (those with 50-99 employees) still use paper forms compared to the 20 percent that use tax software.

Many business owners, however, are planning to use more technology when they file taxes in 2017, the report says.

About 21 percent of small business owners are looking to use more technology and use less paper this year. Moreover, 61 percent are planning to make changes in how they filed their taxes.

It’s worth noting that many business owners still wait until the last minute before they file their taxes. Specifically, 11 percent of business owners said they waited to file their taxes on Tax Day or asked for an extension.

Software Tools Can Make Tax Filing Easier

Software tools for tax filing can save time, resources and eliminate the risks of calculation errors.

“Tax software can provide SMB owners with the flexibility to file their taxes at their own pace,” Christine Nessen, senior director of contract marketing for Office Depot said in a release announcing the survey.

Time saved on filing taxes can be better spent on other business tasks.

Florida-based Office Depot interviewed 1,500 small businesses online for the survey.

TurboTax Photo via Shutterstock

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Shubhomita Bose


Shubhomita Bose Shubhomita Bose is a Staff Writer for Small Business Trends. She covers key studies and surveys about the small business market, along with general small business news. She draws on 8 years of experience in copywriting, marketing and communications, having worked extensively on creating content for small and medium sized enterprises.

One Reaction

  1. Gail Gardner

    I find this really surprising given how long online tax filing has been available to the general public. I am not surprised that accountants are slow to embrace changes. Banks are incredible slow. But this isn’t just slow – this is a snail’s pace. And using software makes it so much easier.

    They must fear that software could make errors they would find difficult to detect. But I would expect companies that release software related to anything financial are very careful not to introduce bugs because of the risk of being sued for damages their software causes. Human error is far more likely. Computers are very good at accurate calculations when programmed correctly.

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