Tax filing integration with Block Advisors

Wave is now offering a tax filing integration with Block Advisors for US businesses. With this integration, you can seamlessly file your taxes based on your accounting data in Wave.

Getting yourself tax ready

Tax filing options

Block Advisors tax filing integration FAQ's

Getting yourself tax ready

In order to get the most out of the tax filing integration, we recommend that you categorize all of your transactions and reconcile all of your accounts for the tax year. This guarantees completeness of your records, and ensures you’re not leaving money on the table by making your return as accurate as can be. For more information on making sure that you’re tax ready, check out our article on “Getting your books ready for Block Advisors or another tax preparer”.

Tax filing options

Depending on whether your business files a Schedule C tax return, or if your business is a more complex entity like a corporation, partnership, or multi-member LLC,  different tax filing options will be available to you.

Schedule C (sole proprietors and single member LLC's) 

If your business will be filing a Schedule C for your income tax return, then you have two options available:

  1. File by yourself: through this option, your income and expense data from Wave will be automatically imported into Block's software and mapped to the relevant IRS reporting categories to automatically fill in the appropriate boxes on your return. Block's intuitive, guided tax prep will get you from start to file in no time. 

    Pricing: $175 + $45 per state filed

  2. File with a tax advisor: with this option, you'll have the benefit of working with a Block Advisors small business certified tax pro who will file your taxes for you. Your income and expense data from Wave will be automatically imported for your tax pro. Hand off your taxes and your tax pro will do the work. Review and approve once your tax pro is done preparing your return. Then, your tax pro will file for you. 100% accuracy guaranteed. You can contact your tax pro via secure messaging or schedule a phone appointment - anytime through the process.

    Pricing: $400 + $65 per state filed

Non Schedule C (corporations, partnerships, multi-member LLC's)

As a more complex entity like a corporation, partnership, or multi-member LLC, you will have one tax filing option available to you: 

  1. File with a tax advisor: through this option, you will be matched with a dedicated Block Advisor who you will then add as a collaborator to your business in Wave under the read-only “Block Advisors Tax Pro” role. Your advisor will leverage your reports in Wave and will prepare your return for you. Review and approve once your tax pro is done preparing your return. Then, your tax pro will file for you. Block Advisors guarantees 100% accurate returns, with year-round support from your team of experts

    Pricing: $500 + $150 per state filed

Block Advisors tax filing integration FAQ's

Which option should I choose? Should I file by myself or with a Block Advisor?

If you are a Sole Proprietor or Single Member LLC, you’ll have the option of using the integration to file by yourself, or alternatively, you can choose to file with a Block Advisor. If you choose to file by yourself, the integration will take care of the heavy lifting for you by mapping your income and expenses from the year to the appropriate IRS reporting categories. All you have to do is review and submit the information to file your return. 

On the other hand, you can choose to file with a Block Advisors small business certified tax pro. Review and approve once your tax pro is done preparing your return. Then, your tax pro will file for you.

If your business is an entity like a multi-member LLC, an S-Corp, or a C-Corp, you will not have the option of filing by yourself. Filing for these types of businesses is a more complicated and nuanced process, so your default option will be to file with a Block Advisor certified tax pro who is able to navigate the complexities of these entity types, and file on your behalf.

How do I sign up for a Tax Pro? What happens then?

If you know from the beginning that you want to get help, on the Tax Filing page in Wave, choose the “File with a tax advisor” option. 

If your business is filing a Schedule C return, the integration with Block Advisors will automatically map your data to the relevant IRS reporting categories, and you’ll then be matched with one of their experienced small business tax preparers. 

If your business is a more complex entity like a multi-member LLC, corporation or partnership, you’ll be asked to add them as a “Block Advisor Tax Pro” collaborator on your Wave account. This will give them view-only access to the following areas of Wave:

  • Reports
  • Accounting
  • Sales
  • Purchases
  • Payroll (if applicable)
  • User management

Alternately, you can also choose to provide any documents to your tax pro via secure document sharing.

What do I have to do to file by myself? What if I don’t know anything about taxes?

Once you’ve chosen a tax filing option and created your account with Block, you’ll start your taxes with a series of personal questions to determine things like your filing status. Next, you’ll be brought to the small business portion of your tax return. Here, you need to verify that your business information is correct by following a series of interview questions, and filling in any information that Wave doesn’t have. Then review your income and expense categories, making sure that anything “unmapped” to an IRS category is assigned to one. Finally, if there are certain expenses that require more information (like mileage, home office, or depreciation), you’ll be able to follow prompts within your Block account to complete those sections as well.

Not sure about a step, form, or tax situation? Just ask! With Online Assist, you get unlimited, live help from tax experts in the "file by yourself" option.

What data is sent from Wave to Block Advisors?

In addition to basic information like your business name and address, Wave will send the balances of all the categories on your Profit & Loss report to the Schedule C section of your 1040. In other words, instead of printing a Profit & Loss report for January 1 - December 31 and giving it to an accountant, Wave will send that same information directly into Block's software. Your small business information will be pre-populated, and income accounts and the most common expense accounts will already be categorized into IRS categories. 

Wave will send cash basis P&L numbers to Block Advisors. This is the most common tax filing method for small businesses. You can check your prior year Schedule C to confirm whether you file this way: look for question "F: Accounting Method" at the top of page 1 of your Schedule C; if the box next to "(1) Cash" is checked, you're good to go! 

Can I use the Block Advisors Tax Filing integration if I haven’t categorized all of my transactions?

While we recommend that you categorize all transactions first before using our Block Advisor's integration, it is possible to use the integration without having done so. If you try to start your taxes with uncategorized transactions in your account, you will receive a prompt asking you to finish categorizing your transactions, but you will also have the option to proceed and send your Wave data to Block Advisors.

If you do decide to proceed with uncategorized transactions, and you’ve chosen to “File by yourself”, you will also see additional prompts on Block’s end to finish categorizing your transactions. By following those prompts, you’ll be brought back into Wave where you’ll land on the Transactions page, prefiltered to your uncategorized transactions. After completing your categorization in Wave, be sure to click the “re-import Wave data” button when you go back to your tax return to ensure that your newly categorized transactions are included. If you do not click the “re-import Wave data” button after finishing your categorization in Wave, the changes will not be reflected in your tax return.

Any accounting adjustments you've made on Block Advisors will be overwritten when Block pulls in new Wave data through re-import function. Review all income and expenses again once it's refreshed.

Can I use the Block Advisors integration if I haven’t reconciled my accounts?

Just like in the case of uncategorized transactions, it is possible to use the integration without having completed the reconciliation of your accounts. If you have not yet reconciled your accounts when you start your taxes with Block Advisors, you will not receive any additional prompts asking you to do so. However, we strongly recommend that you reconcile your accounts in Wave before integrating with Block Advisors to ensure that your numbers are accurate.

Reconciling helps you verify that your accounting records 100% match your banking records from the real world. Without reconciling, you could be leaving yourself susceptible to errors like duplicate or missing transactions that may misrepresent your income and expenses. 

What makes Block Advisor’s tax pros special?

As your small business partner, they are the experts for every tax situation. Block’s small business certified tax pros are smart and savvy. And they proudly help more than two million small business owners with taxes every year.

  • Up to date on federal, state, and local taxes

  • Specialized training in small business taxes

  • Available year-round

  • 12 years average experience