Tax Software Company, Service Bureau, Reseller: What’s the Difference?

Confused about the differences? Let us break it down.

If you look on Facebook you might think there are 100s of tax softwares out there. But here’s the dirty little secret in the tax software world: a lot of “software companies” aren’t software companies at all. They’re resellers. They slap their own logo on a product that was built by one of the same 4–5 major players in the industry and they market it like it’s their own.

So what’s the real difference between a software company, a reseller, and a service bureau – and most important, which is right for your tax business? 

Tax Software Company, Service Bureau, or Reseller.

Here’s the breakdown:

Tax Software Company

The true origin. They build and maintain the tax software, roll out updates, and make sure it’s IRS-compliant. But don’t expect them to hold your hand through tax season. You’ll likely sit on hold for a long time when you need help the most, and you have no negotiating power unless you’re doing huge volumes.

Service Bureau

Service Bureaus take a hybrid approach. Service Bureaus take on the customer service and support responsibilities, and in exchange, negotiate volume discounts for their customers. Service Bureaus stack on real value by offering service year-round to customers. For tax companies that aren't big enough to command attention directly from the software companies, Service Bureaus are the ones who pick up the phone in one ring when you’re drowning in returns at 9pm in March. 

Reseller

Resellers are the “buy low, sell high” crew. They don’t build the software. They just rebrand it and flip it. Once the sale is done, so is their job. Some resellers claim to - and even try to - provide training, support, and strategy, but when tax season comes you’re going to be on your own. If you’re a solo tax preparer and don't need much support, then resellers can be a great choice as they’re often the least expensive. But if you’ve got a team doing taxes and you need help beyond the basics, you’ll likely find yourself in a tough spot.  

Only you know what’s best for your business, but here’s the truth. 

• If it's just you and you need bare-bones software at the lowest price: consider a reseller

• If you have a team and need software along with a partner invested in your success: go with a service bureau

• If you prefer going direct, and don’t mind paying more (with less support), choose a software company.

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• Integrated Bank Product Solutions: Seamlessly incorporate bank products into your services, allowing clients to pay fees directly from their refunds and access funds faster. 

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• Dedicated Support: Benefit from a dedicated Customer Success Manager, year-round support in English and Spanish, and full-service onboarding to ensure your operations run smoothly. 

• Business Growth Tools: Access customized branding, marketing support, and sales strategies to attract and retain clients. 

• Try Before you Buy: We offer a a no commitment free trail of our software options. Try it out to make sure it works for your business.

With Profit Edge, you're not just getting software—you're gaining a partner committed to your success.