The best tax software for tax preparers

If you’re a tax professional, you rely on the right software to keep your work organized, accurate, and efficient. But what’s the best tax software for tax preparers? 

Find out by measuring what you need, what’s available, and some of the best software for tax preparers. 

What to consider when looking for tax software 

Choosing the best tax software for your business requires that you consider not just what’s popular among tax professionals, but what will best serve your specific needs. Consider prioritizing these characteristics to help guide your thinking. 

IRS compliance 

Above everything, any tax software must be updated with the latest regulations and forms directly from the IRS, as they apply to the current filing season. Being current and accurate according to the IRS is the only way that the software you choose will be useful to you and your clients. 

Scalability 

A scalable tax software will easily allow you to take on more clients and add more users, should you hire additional tax preparers to expand your team. Scalability will also allow for integration with other financial systems, increased volume of transactions, and insights and analytics reporting according to the data you provide per client. 

All these characteristics are important when you plan to grow your tax business. 

Functionality 

In addition to being a user-friendly and intuitive program to use, the best tax software for tax preparers will offer a wide range of comprehensive functionalities. 

A few functions to look for include: 

• Access to all updated tax forms
• Gift and state tax preparation
• Unlimited returns from all 50 states
• Document managers
• Tax estimators
• Audit protection
• Refund calculators 
   

Cloud-based vs. On-premise 

Cloud-based software is hosted on an external server and accessed from anywhere via the internet. On-premise refers to a tax software that’s downloaded on a local server and accessed only from select computers where it is installed. 

Each option has its benefits: cloud-based software allows for instant updates, real-time collaboration, and the convenience of working from anywhere. Also, it's not easily lost if your hardware fails. On-premise options offer more data security and often lower prices.¹ 

Cost 

The best tax software for you as a tax preparer is the one that includes the most valuable qualities and functions, at a price that fits in your business plan. Avoid purchasing the least expensive option if it means it won't provide the features and functionality that your business needs. Similarly, don't feel pressured to purchase outside of your budget for a platform that has more features than you realistically need. 

Top tax software for tax preparers 

These are some of the most popular and robust tax software options used in tax preparation businesses available now. 

UltraTax CS

UltraTax CS is the most popular option as it offers a complete line-up of up-to-date tax forms, even the more complex options like estates, trusts, and partnerships. Additional tools include data integration and accessible scalability. However, the price is higher than some other options.² 

Lacerte 

Lacerte, offered by Intuit (also the company behind TurboTax), is a popular tax software for tax preparers because of its usability, ease of e-filing, and streamlined ability to handle multistate business returns. It also features many functionalities, integration tools, and pricing plans.³ 

Drake Tax 

Drake Tax is a popular tax software among sole practitioners, with an accessible price point for small business.⁴ It also provides some analytics and tax advisory functions, data management tools, multi-state returns.⁵ 

TaxSlayer Pro 

TaxSlayer Pro offers cloud-based or desktop options and caters to new tax preparers with thorough product support and training resources. It provides unlimited 1040 forms, inclusion of all 50 states, e-filing, and other integration options depending on your plan.⁶ 

Expand your tax services as an Enrolled Agent

If you're offering tax preparation services, the best tax software can help you build your business, but you may still be limited in what you can offer with only a PTIN. 

Earn your Enrolled Agent (EA) designation to gain unlimited tax representation authority before the IRS and expand the tax services that you can offer your clients! 

Learn more in our FREE EA Exam Guide eBook. 

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