The ROI of E-Filing vs. Hiring an Accountant for Form 720

What Are You Actually Comparing?

E-filing and hiring an accountant are not opposite filing methods — a CPA can also submit Form 720 electronically. The useful comparison is preparing the return yourself through an IRS-approved e-file provider versus paying a professional to prepare or review the return and submit it for you. The IRS says electronic filing of Form 720 is optional, done through an approved transmitter or software provider, with a service fee set by the provider. The decision is really about who handles the work behind the electronic submission: with self-preparation, your business owns the tax information, calculations, line-item allocation, and review; with an accountant, some or all of that is delegated.

What It Costs to E-File Form 720 Yourself

The direct cost of self-preparation is the e-filing service fee plus the value of the time spent preparing the return. With File720Online, a single Form 720 filing is $69.90 — you can start the return without paying upfront and pay when you are ready to submit; see current pricing. Two separations to keep straight:

• The filing fee is not the tax. The service fee pays for the electronic filing service; the excise tax reported on Form 720 is your liability to the IRS, paid separately.
• Software help is not tax advice. A platform can guide preparation — tax-line selection, validation, transmission, digital records, IRS acknowledgment, payment functionality — but the business still needs to understand what it is reporting and why.

What Hiring an Accountant Costs

Professional fees vary with the work: a flat fee for an agreed scope, an hourly rate, an annual package that includes Form 720, a seasonal arrangement, or additional charges for out-of-scope work. A straightforward return following an established process takes less professional time than one involving several excise-tax categories, unusual transactions, detailed calculations, or corrections to previous quarters. So the right comparison is never "$69.90 software versus $350 accountant" — you need to know what work each amount includes. Fees rise when the return requires multiple categories and schedules, tax-category mapping, line-item allocation, document reconciliation, review of previous filings, cross-quarter corrections, research, or actual tax advice. That is where an accountant’s fee has real economic value: you are paying for professional time and judgment, not just transmission.

How to Calculate the ROI

Put a value on both money and time:

Worked example: an accounting-team member spends two hours gathering records, entering the return, checking calculations, and submitting. Value that time at $75/hour:

That does not automatically make self-filing the better choice. If the accountant’s fee includes tax advice your business needs, or professional review reduces the chance of an expensive mistake, that $130 can be money well spent. And the math flips with workload: at six hours instead of two, the internal cost alone is $450 before the filing fee — at that point a professional can make more economic sense even at a higher quoted fee. ROI is tied to the actual filing workload, not the advertised software price. (The accountant figure above is hypothetical; the $69.90 filing fee is File720Online’s current single-filing price.)

When Self-E-Filing Gives Better ROI

• The return is routine. Known excise-tax categories, established records, and the same reporting process quarter after quarter. (Routine does not mean error-free — the filer still reviews before submitting.)
• The figures are already calculated. If the accounting system has produced the taxable amounts and you know which lines apply, filing needs little internal work. A provider helps with workflow — it is not a substitute for accurate records.
• You understand the applicable category. Form 720 spans fuel, environmental, communications, transportation, manufacturers, and other excise taxes; the Form 720 instructions explain the applicable parts and schedules.
• You file every quarter. Repetition makes the internal process more efficient, shrinking the time component of the calculation.
• Your internal time cost is reasonable. If a capable employee can complete the return without hours of research into unfamiliar rules, the low filing fee stays low.

When an Accountant Provides Better ROI

• The tax treatment is unclear."Does this transaction belong on Form 720, and how should it be treated?" is beyond data entry — a platform completes returns; it does not resolve uncertain tax positions.
• Several excise-tax categories are involved.Schedule A records certain liabilities, Schedule C handles specified claims, and Schedule T covers two-party fuel exchanges. A schedule’s presence does not mandate an accountant, but it does demand understanding the reporting rules.
• Figures need professional review — especially after an operations change, a new taxable product, or a first-time category.
• A prior quarter needs correcting. The IRS routes prior-quarter adjustments through Form 720-X, not the current return. If you are unsure what needs to change, professional help is often worth the fee.
• Your time is worth more than the fee.If an owner or senior accountant would burn hours on research and checking, the accountant’s invoice buys that time back along with the review.

Does E-Filing Reduce Errors?

The IRS says e-filing Form 720 can improve service and reliability while reducing processing time and errors. Validation catches missing required information, invalid formats, certain inconsistent entries, and some calculation issues before transmission. What it cannot replace: knowing whether an excise tax applies, which category is relevant, how an unusual transaction should be treated, whether a calculation is conceptually correct, or whether a prior-period correction is required. A return can pass every software check and still contain a tax decision that deserves professional review — the entry errors themselves are covered in our filing mistakes guide.

Which Approach Fits Your Business?

These are practical guidelines, not IRS rules — nothing requires hiring a CPA to e-file. And the hybrid approach deserves real consideration: prepare routine information internally, e-file standard quarters through an online provider, and consult a CPA when an unusual question arises — or prepare internally and pay specifically for professional review. That controls recurring costs while keeping access to professional advice when the situation requires it.

Where File720Online Fits

For businesses that understand their Form 720 reporting and want to handle routine preparation internally, File720Online is an IRS-authorized e-file provider supporting Form 720 parts and schedules — including Schedule A, Schedule C, and Schedule T, plus supporting forms such as Form 6627 and Form 7208 — with built-in validation, secure payment functionality, and an electronic IRS acknowledgment after submission. You can start the filing without paying upfront and pay the $69.90 fee when you are ready to submit.

The honest boundary: our support team can provide general guidance on Form 720 categories, but for specific tax advice — uncertain taxability, rule interpretation, complicated calculations, prior-quarter corrections — consult a qualified CPA or tax professional. An e-file provider helps you file; a tax professional provides tax advice within the scope of their engagement.

Related Guides