Is Keeper Tax a legit app?

Keeper Tax is a popular app that helps self-employed individuals and freelancers track expenses, estimate quarterly taxes, generate various business reports, and ultimately file taxes. With its user-friendly interface and robust features, Keeper Tax aims to make the tax filing process smooth and stress-free for solopreneurs. But is it a legit, secure app that you can trust with your sensitive financial information? Let’s take a closer look.

What is Keeper Tax?

Keeper Tax is an iOS, Android, and web app designed specifically for self-employed individuals and freelancers to manage their finances and taxes. The app allows users to:

• Track income and expenses
• Capture receipts and upload documents
• Generate expense reports
• Estimate quarterly taxes
• Maximize tax deductions
• Import data from other apps
• File 1099 taxes

Some key features of Keeper Tax include:

• Auto-categorization of transactions
• Mileage tracking
• Invoicing
• Profit & loss statements
• Balance sheet
• Cash flow analysis
• Tax planning tools
• Unlimited accountants support
• Integration with QuickBooks Self-Employed

Keeper Tax aims to provide an all-in-one tax and accounting solution for freelancers and solopreneurs. The app syncs with bank accounts and automatically imports and categorizes transactions to eliminate manual data entry. It then uses the data to generate various financial reports and provide an estimated quarterly tax amount. When tax season rolls around, Keeper Tax can help users file their Schedule C, maximize deductions, and handle all the required 1099 tax forms.

Is Keeper Tax secure?

Security is crucial when choosing any app that will access your financial accounts and tax data. Here are some key factors that support Keeper Tax being a secure platform:

• Bank-level security – Keeper Tax uses bank-level security, data encryption, and fraud monitoring to protect user data and accounts.
• Read-only access – The app only has read-only access to financial accounts for importing transactions. It cannot move or withdraw money.
• PCI compliance – Keeper Tax is PCI-DSS Level 1 certified, meeting high security standards for handling credit card data.
• Independent security audits – External third-parties regularly audit Keeper Tax’s security protocols and systems.
• No storing financial credentials – User login credentials for financial institutions are not stored by Keeper Tax.
• Dedicated security team – Keeper Tax employs a full-time security team focused on protecting user data.

The company states that it uses physical, network, and application-level security tools to protect all user data. Sensitive data is encrypted both in transit and at rest. Overall, independent research and user feedback indicates Keeper Tax offers a high level of security suitable for managing financial data.

Is Keeper Tax accurate?

For solopreneurs to trust an app like Keeper Tax, it must accurately track income and expenses, properly categorize transactions, and provide correct tax estimates and filing. Here are some factors that support the accuracy of Keeper Tax:

• Direct bank imports – Transactions are imported directly from bank accounts instead of relying on manual entry.
• Advanced categorization – Machine learning algorithms correctly categorize 85-90% of transactions.
• Easy manual override – Users can easily re-categorize any incorrect transactions.
• CPA-approved calculations – Tax estimates and projections are triple-checked by CPAs.
• IRS-validated e-file – E-filed returns go through extensive accuracy checks before IRS submission.
• Positive user feedback – Most user reviews praise the accuracy of the app’s imported data and tax calculations.

Keeper Tax generates reports and tax estimates using real transaction data from financial accounts. This automated approach reduces the likelihood of human error. The company stands behind the accuracy of its app by offering to reimburse any IRS penalties caused by calculation errors on its part.

Who stands behind Keeper Tax?

Keeper Tax was founded in 2016 by serial entrepreneurs Joshua Zimmelman and Michael Wagner. Zimmelman has decades of experience as a CPA and tax attorney specializing in serving freelancers and entrepreneurs. This expertise provided the inspiration for creating Keeper Tax to simplify taxes for the self-employed.

The leadership team includes several CPAs and tax attorneys alongside engineers and cybersecurity experts. The company is based in San Francisco and has raised over $6 million in funding from investors including Bloomberg Beta, FundersClub, and Y Combinator.

Keeper Tax states that over 300,000 freelancers have used the platform to file over $2 billion in 1099 taxes. So while a relatively new company, it already has an established user base and track record in its niche tax software market.

What are the pros of using Keeper Tax?

Here are some of the key advantages of using Keeper Tax for freelancers and solopreneurs:

• Streamlined finances – Syncs income, expenses, and tax obligations in one place.
• Time savings – Reduces time spent on bookkeeping and taxes.
• Convenience – Can access financial data and file taxes on any device.
• Maximized deductions – Finds all eligible business expense deductions.
• Easy to use – User-friendly interface designed for non-accountants.
• Support – Provides unlimited support from accounting professionals.
• Affordable – Fair subscription pricing starting at $5/month.

In summary, Keeper Tax makes managing finances and taxes much simpler for solopreneurs compared to doing everything manually or hiring an accountant. The automatic transaction import and tax estimate features are big time savers. Instead of gathering receipts and spreadsheets, users can just snap a photo of a receipt on their phone and let Keeper Tax take care of categorization and storage.

How much does Keeper Tax cost?

Keeper Tax offers several pricing tiers depending on the features needed:

Considering that hiring an accountant can cost $200 or more per month, Keeper Tax delivers significant value. There are also discounts available for paying annually instead of monthly. Overall, Keeper Tax provides an affordable solution relative to traditional accounting services.

What are the cons of Keeper Tax?

While Keeper Tax has many positives, there are also some potential downsides to consider:

• Learning curve – Can take some time upfront to set up and learn the app.
• Account connection issues – Sometimes fails to properly sync with certain financial accounts.
• Tax form errors – Users occasionally report mistakes on certain tax forms.
• Customer support wait times – Can sometimes take 1-2 days to get support during tax season rush.
• Limited reporting – Options are decent but not as robust as full-scale accounting systems.

In general, user feedback indicates the pros significantly outweigh the cons for most solopreneurs. But it depends on each individual’s specific needs and preferences. Keeper Tax may not be an ideal fit for freelancers with complicated tax situations that require sophisticated reporting and maximum customization.

How does Keeper Tax compare to competitors?

Some of the top competitors in the tax and accounting software space for solopreneurs include:

Keeper Tax differentiates itself by specializing specifically in tax preparation, planning, and filing. Its seamless Schedule C handling and maximized deductions make it ideal for solopreneurs focused strictly on taxes rather than overall accounting. But QuickBooks Self-Employed or Wave may be a better option for freelancers needing small business accounting capabilities beyond just taxes.

Conclusion

In conclusion, Keeper Tax is considered a legitimate, secure, and accurate app based on independent research and overwhelmingly positive user reviews. The company employs stringent security protections, undergoes regular audits, and uses advanced technology like machine learning to enable highly accurate transaction categorization and tax estimates.

Founded by tax professionals specifically to serve freelancers and solopreneurs, Keeper Tax makes handling finances and taxes much simpler compared to traditional DIY or accountant options. Its user-friendly interface, extensive feature set, and robust mobile apps enable users to efficiently track income and expenses, maximize deductions, estimate quarterly taxes, and prepare and file tax returns.

While no tax software is 100% perfect, Keeper Tax delivers significant value to solopreneurs focused primarily on taxes rather than overall accounting and financial management. Its combination of convenience, accuracy, security, affordability, and unlimited support is unmatched in the tax prep space.

For self-employed individuals tired of tax headaches and anxiety each year, Keeper Tax provides the ideal solution to streamline and simplify tax preparation and filing. The vast majority of users report being highly satisfied with Keeper Tax and the immense time savings it provides during tax season. So based on all available data, Keeper Tax stands out as a legitimate and highly recommended option for freelancers’ tax filing needs.