Finding the right tax preparation software is a common challenge for accounting professionals.
This article provides a detailed review of the top tax software options for CPA firms and tax preparers, with an in-depth analysis of features and capabilities to help you make an informed decision.
We will explore leading solutions like Lacerte, Drake Tax Software, and Intuit Professional to compare functionality for e-filing, error checking, integrating client data, and keeping current with ever-changing tax laws. You'll get recommendations based on your firm's size, client types, and workflow needs to determine the best fit for maximizing efficiency.
Navigating the World of Professional Tax Software
Professional tax software has become an invaluable tool for accounting professionals and CPA firms to improve efficiency and accuracy during tax season. As tax codes grow increasingly complex, automating and streamlining tax preparation is critical.
Cloud-based solutions in particular offer anytime, anywhere access combined with seamless integration, collaboration, and mobility. When evaluating tax software for your firm, focus on core features like e-file integration, automated form population, smart diagnostics to spot errors, multi-state handling, and client portals for seamless document sharing.
Leading professional options like Intuit Lacerte, Drake Tax Software, and Thomson Reuters UltraTax provide robust accounting capabilities alongside specialty support for trusts, estates, partnerships, and more. While pricing varies, most offer monthly subscription plans that scale to fit small practices and large multi-office CPA firms alike.
Transitioning to the right online tax preparation software takes research - but the efficiency gains for high-volume tax practices makes it an invaluable investment. As regulations and technologies progress, leveraging automated solutions helps firms focus less on manual paperwork and more on strategic advisory services.
Which tax software is best for tax preparers?
Choosing the right tax software is crucial for tax professionals to maximize efficiency and provide excellent service to clients. Here is an overview of some top options:
Top Tax Software for Professionals
UltimateTax stands out with powerful importing and bookkeeping capabilities integrated directly into an intuitive tax preparation interface. It's designed for CPA firms preparing complex returns. Key features include:
- Secure cloud access across devices
- Client document management
- Multi-state return support
- Detailed performance analytics
Drake Tax is ideal for individual and small firm preparers looking for an affordable tax solution with robust support resources. It provides:
- Easy interview-based data import
- Adjustments, estimates, and planning tools
- Streamlined workflows
- Mobile apps
TaxSlayer Pro offers a fast, low-cost tax prep solution built specifically for EAs and tax pros. It provides:
- Guided interview importer
- Customizable templates
- Client status dashboard
- Integrations with supporting tools
When selecting software, pros should consider their clientele, firm size, multi-state needs, desired features, and budget. Test driving demos can help match specific use cases to the strengths of each platform. Investing in the right tax technology paves the way for a smooth season and happy clients.
Is there a professional version of TurboTax?
Tax preparation software are commonly used by individuals and small businesses to file their taxes. However, tax professionals like CPAs and accounting firms require more robust software to manage high volumes of returns for multiple clients.
While TurboTax is designed for DIY tax filing, Intuit does offer a professional-grade solution.
Intuit Tax Online and Lacerte Tax Software
Intuit has two professional tax software options:
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Intuit Tax Online: A cloud-based tax preparation and filing software with collaboration tools to streamline multi-user access. It includes features like multi-return batch processing, client grouping, automated workflows, data import from common accounting software, and more. Pricing starts at $30/month per user.
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Lacerte Tax Software: A desktop-installed tax solution with advanced capabilities preferred by CPAs, accounting firms, and tax professionals preparing complex returns. It includes features like automated workflows, batch processing, unlimited PDF returns, fixed asset manager, and more. Lacerte requires purchasing individual licenses which start at $800 for the first user.
Both Intuit Tax Online and Lacerte Tax Software integrate with QuickBooks Online Accounting software, enabling seamless migration of client financial data. They also include efile capabilities for fast electronic tax return filing and provide access to the latest tax forms and schedules.
These professional tax solutions can handle an unlimited number of clients and tax returns, supporting tax professionals in efficiently managing their workload. Their specialized capabilities, security, integrations with accounting software, and automatic tax form updates make Intuit Tax Online and Lacerte preferred options over consumer tax software like TurboTax.
How much does CCH tax software cost?
CCH CompleteTax offers affordable pricing for tax professionals looking to file clients' returns accurately and efficiently.
Rather than charging by number of returns, CCH uses a simple per-return pricing model. For the 2021 tax year, preparing and filing a federal return costs just $29.95. Adding a state return is only $14.95 more. So a federal and single state return costs only $44.90 to prepare and e-file. There are no extra charges to e-file if you are eligible.
The software is optimized to help tax professionals maximize deductions and credits for their clients. Features like automated accuracy reviews, carryover data, and customizable organizers simplify return prep. This saves preparers time while reducing costly errors.
With unlimited free federal returns, free Customer Priority Support, free mid-year tax law refresher courses, and unlimited e-filing, CCH CompleteTax delivers exceptional value. Preparers can grow their business and bottom line with a powerful yet affordable solution.
Review sites like CPA Practice Advisor praise CompleteTax's price point. And customers agree it provides comprehensive DIY features at an accessible cost. For tax professionals aiming to profitably scale up while providing top-notch service, CCH CompleteTax checks all the boxes.
How much does pro series cost?
ProSeries Tax offers flexible pricing plans to meet the needs of tax professionals. Their Pay-Per-Return plan starts at $624 per year, plus $57 per federal return and $49 for each state return.
This can be a cost-effective option for preparers filing a limited number of returns. For high volume practices, ProSeries also offers unlimited filing plans which allow unlimited federal and state returns for one flat fee.
When evaluating the total cost, tax preparers should consider:
- Their average number of returns per year
- The percentage of federal vs. state returns
- Any discount promotions ProSeries may offer
ProSeries integrates well with other Intuit software like Lacerte Tax and QuickBooks Accounting. For larger accounting firms using these tools, bundling ProSeries Tax can lead to further cost savings.
Overall, ProSeries aims to provide scalable and affordable tax preparation software for all sizes of practices. Their flexible pricing plans enable customized solutions to manage costs effectively.
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Maximizing Efficiency: Cloud-Based Tax Software for Tax Preparers
Cloud-based tax software provides significant advantages for tax professionals in streamlining operations, ensuring accuracy, and managing complexity. As tax laws grow more intricate, leveraging quality software is key to working efficiently and avoiding mistakes.
Streamlining Operations with Automation
Tax preparation software automates repetitive, manual processes to help firms save substantial time. Key features like auto-fill for client data and calculations, e-filing, document management, and flow of data between forms eliminate tedious paperwork. This enables preparers to complete more returns accurately in less time.
For example, inputting client data automatically flows to the required forms. Automatic calculations also populate based on latest tax codes, removing manual computations. Batch e-filing directly from the software further avoids paperwork delays. Such automation allows preparers to improve productivity by up to 50%.
Ensuring Precision with Advanced Error Checking
Mistakes can lead to processing delays, penalties, and client dissatisfaction. Advanced error-checking in tax software reduces mistakes by alerting users to questionable entries, out-of-range amounts, omitted info, outdated tax law usage and other issues.
Some software check for errors as data is input, while batch validation catches issues across multiple returns. Customizable diagnostics also flag uncommon activity patterns for review. Real-time feedback helps identify and correct mistakes early. Such rigorous validation gives firms confidence in submitting compliant, accurate returns.
Tackling Complex Tax Laws
Frequent tax code changes make compliance highly complex. Quality software simplifies this by automatically updating forms yearly and providing explanatory guidance on new rules. Some also offer customized templates for niche industries with specialized regulations.
Intelligent tools like explanatory warnings for unusual situations further help apply complex tax laws correctly. Easy access to historical filings provides reference on past treatment. Such assistance proves invaluable when navigating evolving regulations.
By leveraging automation, advanced validation and tools for complexity, cloud-based solutions enable firms to work faster and minimize errors. This drives productivity, compliance and client satisfaction. As regulations progress, quality software is imperative for efficient, accurate tax preparation.
Essential Features of Top Tax Software for CPA Firms
When evaluating tax preparation solutions, keep an eye out for these essential features that facilitate efficiency, accuracy and staying up-to-date.
Efficient E-filing and Data Integration
The ability to seamlessly import financial data from banks, payroll providers, and other sources saves accountants huge amounts of time and effort compared to manual data entry. Modern solutions integrate directly with popular small business software platforms through secure APIs to pull income, expenses, deductions, and other tax-impacting data directly into the tax preparation interface. This eliminates duplication of work and reduces opportunity for human error through re-keying numbers.
Likewise, fast and reliable e-filing integration ensures completed returns can be submitted to the IRS and state agencies at the click of a button. This removes the hassles of printing, signing, and mailing paper returns through certified mail. Between data imports and paperless filing, some solutions enable over 50% gains in productivity compared to manual processes.
Instantaneous Real-Time Error Checking
Mistakes on tax returns can lead to processing delays, penalties, audits, and client dissatisfaction. Advanced tax software like Lacerte and Intuit Professional Tax Online use real-time error checking to validate entries across 100% of forms, schedules, worksheets, and other filings components. As values are entered, algorithms instantly flag questionable amounts, illogical deductions, incomplete data, and anything else that could draw scrutiny.
This heads off problems before returns are submitted, saving the headaches of amending filings later. Preparers can also trust that returns avoiding errors throughout the process will have the smoothest sailing through processing.
Keeping Current with Automatic Updates
Tax law evolves each year through new statutes, evolving interpretations, court decisions, and other factors. Outdated information leads to non-compliance and wasted efforts redoing incomplete returns. Top solutions like Drake Tax automatically download relevant federal and state tax updates multiple times per week.
This guarantees preparers use up-to-date forms, worksheets, rates, deductions, and other components without any manual effort. Preloaded updates before tax season also ensure compatibility with all the latest provisions and prevent surprises mid-season. Between automated integration and updating, modern tax software reduces the legwork to stay current and compliant.
Exploring the Premier Tax Preparation Software Options
As a tax professional seeking to streamline workflows and maximize productivity, having the right tax software is imperative. With the tax code growing increasingly complex each year, leveraging technology to enhance efficiency and accuracy is key. There are a few premier options on the market worth strong consideration based on the unique needs and structure of your firm.
Lacerte Tax Software: A Comprehensive Solution
For mid-sized to large accounting firms handling a high volume of individual and business returns, Lacerte Tax Software by Intuit offers robust capabilities. As one of the most long-standing and widely-used professional tax prep solutions, Lacerte provides exceptional e-file integration, multi-user options to enable real-time collaboration, and highly customizable workflows.
With Lacerte, you can easily import data from various accounting systems, leveraging the software's strong integrations. Bulk importing and exporting features streamline data flows across years and various tax forms. Lacerte also enables batch processing of returns, allowing you to prepare taxes efficiently at scale.
Advanced analytics tools provide deep insights into your book of business and identify tax-saving opportunities through visualization of trends, profitability drivers, and more. For larger firms, these features are invaluable in informing strategic decisions.
Efficiency in the Cloud with Drake Tax Software
Drake Tax Software offers CPAs and accountants a flexible, cloud-based tax preparation solution focused on simplicity and seamless data integration. As a software-as-a-service (SaaS) platform accessible from any internet-connected device, Drake enables remote collaboration and efficient multi-preparer workflows, making it ideal for smaller firms.
One of Drake's greatest strengths lies in its strong connections with many popular small business accounting platforms like QuickBooks Online and Xero. Data flows directly and securely from your clients' source accounting systems into Drake for tax prep, removing manual efforts.
While Drake lacks some of the advanced analytics of solutions like Lacerte, its affordable pricing, ease-of-use, and constantly updated tax code make it an excellent option for smaller firms seeking simplicity and streamlined tax workflows.
The Versatility of Intuit Professional Tax Software
For accounting firms that prepare taxes for a diverse client base inclusive of varied entity structures and industries, Intuit Professional Tax Software warrants strong consideration. Available as a desktop package or cloud-based solution, it combines exceptional flexibility with extensive analytics tools.
From the latest tax law changes to complex specialty returns, Intuit Professional Tax handles intricate taxes with ease. Custom workflow options, batch processing, and multi-user collaboration enable high productivity even during tax season's crunch times.
With rich visualization features and an analytics dashboard highlighting metrics like profitability, revenue, and more, you gain actionable insights to inform strategic decisions. For larger firms, these capabilities are invaluable.
Intuit Professional Tax also enables extensive customization of tax forms, calculation workflows, templates, and questionnaires to align with your firm's unique processes. With versatility to adapt as your firm evolves, it remains a top choice for many CPAs.
Selecting the Best Tax Software for Your CPA Firm
With many solutions to pick from, keep these factors in mind when determining what best fits your firm’s needs.
Analyzing Client Base and Return Types
Consider capabilities for business taxes, specialty returns, multi-state filings, etc. based on who you serve. The clients you work with will determine the key features you need in a professional tax preparation software. As you evaluate options, analyze the types of returns you prepare to ensure the software can handle them.
For example, if you prepare returns across multiple states or countries, choose software with robust multi-jurisdictional capabilities. If you work with estates and trusts, nonprofit organizations, or partnerships, select a solution specialized in those return types. Carefully examine the forms and schedules supported to guarantee the software meets your client needs.
Prioritizing how the system handles the specific returns you prepare will help match your firm to the best tax software.
Optimizing Team Size and Workflow Management
Opt for features like multi-preparer access, task management and automated review routing if working across a large group. The team structure and size of your accounting firm should inform your software selection.
If you have multiple preparers collaborating on client returns, ensure the system includes file locking, notes, version histories, and conflict detection. Robust workflow functionality like automated return routing, electronic signature requests, and status indicators can optimize cross-team efficiency.
Additionally, if serving an extensive client base, tools like batch processing, automated data imports, and bulk actions will maximize productivity. Selecting software aligned to your team’s structure and workflow needs will empower efficient, collaborative return preparation.
Prioritizing Integration and Data Handling
If moving data between systems is important, prioritize platforms with APIs, import wizards and built-in databases. Seamlessly exchanging tax data between your tax preparation software and other platforms is often essential for firms.
When evaluating solutions, examine integration capabilities like APIs, connectors, and built-in databases for efficiently accessing and storing tax documents. If leveraging other systems like practice management or document management software, ensure the tax platform can easily share data.
Import wizards, automated data capture, and e-file connectivity simplify data transfers as well. Weighing a solution’s integration and data handling against your stack and needs will ensure optimal interoperability.
Finalizing Your Tax Software Choice: A Strategic Summary
In closing, automating tax preparation with advanced, purpose-built software provides major efficiency gains while reducing mistakes. Carefully evaluate options based on your firm’s needs before selecting a solution.
Establishing Your Software Must-Haves
Compile a focused list of must-have features critical for your firm's needs, such as:
- E-signature capability for remote signing
- Multi-user access with customized permission levels
- Robust import tools to eliminate manual data entry
- Automated workflows aligned to your processes
- Integration with other platforms you rely on
This helps narrow down the choices to solutions that check your most vital boxes. Prioritizing these fundamental capabilities will facilitate improved productivity and confidence pursuing new business opportunities.
Assessing Options with Free Trials
Before fully committing, utilize free trials to test-drive top contenders using real data. Assess key elements like:
- Accuracy of calculations
- Intuitiveness of interfaces
- Responsiveness of support channels
- Customizability to tailor preferences
Hands-on evaluations enable you to judge real-world performance for your specific needs. Verifying optimal alignment as part of your selection process reduces long-term headaches by matching the best solution to your firm from the start.
