Tax professionals rely heavily on tax software as it helps them to prepare their clients’ tax returns. This software is essential to calculate taxes owed and ensure that the clients are in compliance with tax laws. Tax professionals would face a significant disadvantage in serving clients without tax software.
Tax software for tax professionals helps by preparing tax returns, calculating taxes owed, and ensuring compliance with tax laws. But, it often gets difficult to choose the right tax software based on the situation.
If you look online, professional tax software for tax preparers comes with a variety of helpful resources that can be useful in the tax preparation process.
But, which one should you choose? Here, we have the 6 most recommended professional tax software for tax preparers, that you must try.
5 Features Of Best Tax Software For Tax Professionals
Now, if you are looking for the best software for tax preparation, then there is no “best” tax preparation software. However, there are a few features that the best tax preparation software should have, as mentioned here.
Ease of use
The tax software should be easy to use so that tax professionals can quickly and easily prepare tax returns.
Accuracy
The tax software should be accurate so that tax professionals can be confident that their clients’ taxes are being calculated correctly.
Compliance
The tax software must ensure compliance with tax laws that shield the client from any kind of risk of penalties.
Updates
The tax software has to be regularly updated. Thus, tax professionals can stay up-to-date on changes in tax law.
Support
It is also a great benefit if the tax software offers support. So, in case of a minor glitch, tax professionals can get help when they need it.
Professional Tax Software For Tax Preparers
Tax software 2022 for tax preparers includes several features, such as line-by-line assistance, advanced tax research options, and practice management features.
Most applications also have a client portal where documents can be shared and stored. Additionally, many applications have electronic form signing and e-signature capabilities.
Here are our top 6 recommendations for you that are inclusive of the best features to assist you in your work.
Drake Tax
Drake Tax is a robust tax preparation software suite with many features to speed up the process and reduce keystrokes. This software is designed for small and midsize businesses, but it has features for all types of entities, including partnerships, estates, trusts, and tax-exempt organizations.
- It also has built-in recommendations and allows you to import data from different applications and spreadsheets.
- You can also copy a template from the knowledge base and customize it to your specific needs.
- It also includes forms for federal and state returns, including 1040 forms. Even better, you can prepare the returns electronically or email them to clients.
- Drake offers security features to protect data and confidential information. It has an antivirus, data encryption, and an Intrusion Detection & Prevention System (IDPS).
- It also includes automatic backups and role-based access controls.
- In addition, users can add optional hardware such as a digital signature pad and a 2D barcode scanner.
Drawback: One cannot operate the software without prior knowledge of tax filing.
Price: Start from $345 for 15 returns.
Lacerte
Lacerte is a professional tax software for tax preparers that offers a wide range of features. The software has a few limitations though. For instance, it cannot import most overrides from other tax software, such as Schedule D overrides.
- Lacerte’s software includes tax software for the year 2021.
- It has been tested for accuracy and adherence to predefined formats and has been awarded an acknowledgment from the IRS.
- It also supports a variety of add-on services. These services require a subscription or can be purchased on a per-user basis.
- Lacerte also features a client portal, Intuit Link, that allows you to securely submit tax documents to your clients.
- This feature also saves you time on repetitive tasks and provides more clarity.
- Another feature is Intuit Practice Management, which automates firm actions and keeps data in sync.
Drawback: It also cannot import local and state tax refunds or export estimated payment dates. Also, it does not have an auto-save feature.
Price: The pricing is provided through a sales representative and it provides 3 plans.
ATX Tax
ATX Tax is a powerful software package that helps tax preparers manage their client accounts. The program provides comprehensive tax management, including secure e-file functionality and a secure archiving and backup solution.
- The system’s user-friendly interface allows users to easily navigate between client accounts, tax forms, and e-file statuses.
- It also provides easy access to the program’s application features, including the Return Manager, E-File Manager, and Bank Manager.
- The Pro software offers numerous client tools, including client-specific billing and editable invoices.
- In addition, the software supports multiple payment methods, including flat rates, hourly fees, and charge-per-form fees.
- It also supports electronic filing and provides detailed reports for tracking e-filed returns.
- The software is also mobile-ready, making it easier for preparers to manage their client data on the go.
Drawbacks: The charges are a bit on the higher side.
Price: Starts with ATX 1040 at $839
TurboTax
TurboTax is one of the more expensive tax software options among tax software for tax professionals. You will likely find yourself spending at least $59 without any promotions to get it. You will also have to shell out $49 for state taxes if you have income other than a W-2.
- TurboTax is best for people with more complicated tax situations, such as investment income or itemized deductions, who are comfortable filing their own returns.
- TurboTax premium comes with a number of useful features for professionals. For example, it has a paperless filing feature, which allows you to scan and save documents as digital files.
- It also has support for e-signatures, checks printing, and reporting tools. It also offers full integration with QuickBooks.
- The software offers individual and business tax preparation and includes remote access.
Drawbacks: The charges are a bit on the higher side.
Price: Starts at $80. It also has a free edition.
TaxSlayer Pro
TaxSlayer Pro is a professional tax software designed to help tax preparers do their jobs efficiently and accurately. It has a user-friendly interface that makes system navigation easy.
- Users can access a variety of helpful features, including a Knowledge Base and a Support Blog.
- It also integrates with a comprehensive library of tax-related materials and offers extensive archives.
- This tax software for tax professionals is supported by live phone support, and extended hours during tax season.
- The software comes in three packages: Classic, Premium, and Web.
- Each package includes unlimited electronic filing to all 50 states, a mobile app, paperless support, and an online client management portal.
- The software is also available as a free trial, so it’s easy to decide if it’s right for you.
Drawbacks: No as such
Price: The range starts from Pro Classic: $1,195 to Pro Premium: $1,495
TaxAct Professional
TaxAct Professional is a robust tax software for tax preparers, offering many features at an affordable price. It can be hosted on-site or on the provider’s servers, and also comes with several add-ons, such as payment acceptance and practice management capabilities.
- Its advanced features help tax preparers process and track client returns.
- It also offers a 30-day money-back guarantee and dedicated technical support.
- Other features include an E-organizer, which makes it easy to send client forms and questionnaires electronically.
- The program also offers an e-filing option with e-signature capabilities and an advanced missing client data tool that can flag information that is missing and send requests for it to the client.
- This software helps tax preparers reduce the amount of paperwork and ensures accuracy and speed in filing.
- The Premium version includes paperless office solutions. Premium users can scan documents as digital files. They can also export tax returns in PDF format.
- The Premium version also includes a mobile app that enables tax preparers to send documents to clients.
Drawbacks: Lacks the tracking system if you want to know the status of the return
Price: The price for Professional Federal Editions starts at $150
Takeaways…
When choosing software, the user interface is crucial to the success of a tax preparation program. A good tax software program should be easy to use and intuitive enough to enable even a beginner to master it in a matter of minutes.
In addition to easy-to-understand menus, the program’s settings and functions must be intuitive. A good user experience should make the entire process of filing taxes faster.
We hope this guide was able to help you find the perfect match so that you can help your clients. Good Luck!