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ith the 2022 tax season finally behind us, the Novo team set out to answer the question: How are small business owners filing these days? 

While tax filing software has steadily increased in popularity over the last decade, there are well over 650,000 licensed CPAs in the US that collectively work with millions of businesses. Every year, small business owners have to weigh the pros and cons of hiring a CPA, versus using software like TurboTax to self-file. 

To get a better understanding of small businesses’ tax filing preferences, Novo analyzed data from 4607 small businesses that made a payment for tax filing services, including 384 corporations, 3402 LLCs, 58 partnerships, and 763 sole proprietorships. Key takeaways include:

The majority of small businesses use tax software

According to Novo’s analysis, 57% of the small businesses evaluated used tax software to file their taxes. Only 43% of those small businesses paid for a CPA. This suggests that small business owners are becoming increasingly comfortable with using tax software, and see the cost savings benefits of using tax software outweighing the potential additional expertise they could get from a CPA. 

CPAs still hold the majority amongst corporations 

The percentage of small businesses that used tax software varied significantly depending on the business’s corporate structure. Less than half of corporations (49%) used tax software, likely due the increased complexity of filing that comes with corporations. In contrast, 58% of the LLCs, 59% of the sole proprietors, and 70% of the partnerships used tax software.  

TurboTax is the most popular tax software

Among the small businesses that used tax software, TurboTax was by far their top choice. Of the 2654 small businesses that used tax software, more than half (57%) used TurboTax. Other choices included TaxAct (18%), (10%), H&R Block (6%), and Credit Karma (5%).

Novo Platform Inc. strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.

Novo is a fintech, not a bank. Deposit account services provided by Middlesex Federal Savings, F. A.; Member FDIC.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.


Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

May 9, 2023
Notes by Novo

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