Compare Professional Tax Software
How do you know which professional tax software is right for you? Get the resources you need to choose the right professional tax preparation software.
Finding the ideal professional tax software is essential for growing and managing an efficient tax preparation business. With so many options on the market, it's important to understand what to look for and how to make informed comparisons. You'll get information on:
· Professional tax software overview and comparison
· What to look for when comparing professional tax software
· Questions to consider before purchasing
· Comparing features respectfully
. Benefits of Drake
· Resources to help you decide
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Professional Tax Software Overview and Comparison
There are several professional tax software options available on the market, each offering unique features and pricing structures. Some well-known brands serve a broad range of tax professionals and vary in how they bundle features, provide support, and handle pricing. For example, certain vendors may charge separately for state modules, multi-user access, or e-filing, while others include these components in a flat-rate package. Support experiences and form-based interfaces also differ from product to product.
Drake Tax® includes federal and state returns, multi-user access, and tools like client portals in a flat-rate package. It uses a data-entry interface for faster workflow and is supported by highly rated customer service.
Intuit ProSeries® offers a form-based system and modular pricing. Some tools require separate purchases, and support costs can vary.
Wolters Kluwer ATXTM features strong form coverage with per-module pricing. Client tools are available through additional services, and support is typically limited to business hours.
We encourage tax preparers to research each option thoroughly, verify current offerings directly with the providers, and determine which features best align with the needs of their practice. Always base your decisions on up-to-date, verifiable information.
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What to Look for When Comparing Professional Tax Software
When comparing professional tax software, consider how the product performs across these core categories: functionality, efficiency, support, cost, and compliance. Below is a breakdown of key factors to evaluate:
1. Ease of Use
Evaluate whether the software uses a data-entry system (like Drake Tax) or form-based input. Data entry can speed up preparation time for experienced preparers. Consider the learning curve, availability of training resources, and whether the system includes time-saving features like keyboard shortcuts.
2. Tax Form Coverage
Make sure the software supports all federal and state forms you regularly file, such as 1040, 1120, 1120S, 1065, 1041, 990, 706, and 709. If you file multi-state or fiscal year returns or need to amended returns, confirm these are also supported.
3. Speed and Workflow Efficiency
Key considerations include how fast and logically data can be entered, the ease of importing prior-year data, and workflow-enhancing tools like batch printing, batch e-filing, and integrated document management.
4. All-Inclusive vs. A La Carte Pricing
Understand what features are included in the base price. Some software, like Drake Tax, offers comprehensive packages without add-on fees for essentials like Tax Planner, Document Manager, and multi-user access.
5. Customer Support
During tax season, timely support is vital. Look for vendors that include phone support in their pricing, with low average wait times and knowledgeable staff familiar with both tax law and the software.
Visit Drake Software Award-Winner Support: https://kb.drakesoftware.com/kb/Drake-Home.htm
6. Security and Compliance
Ensure the software meets IRS standards, including IRC §7216 consent handling and data encryption. Features like multi-factor authentication and regular compliance updates are critical.
7. E-filing and Bank Product Integration
Software should be IRS e-file certified and integrate with refund transfer and advance loan providers. Drake, for example, partners with banks like EPS, TPG, and Republic Bank.
Learn more about bank products.
8. Client Tools and Portals
Modern tax offices benefit from secure client portals, e-signature capabilities, mobile document uploads, and built-in payment solutions like Drake Pay.
9. Scalability
Look for solutions that can grow with your business—support for multiple users, office locations, and expanding return volume are important.
10. Data Conversion
Switching software should be easy. Confirm whether conversion is available and how quickly you can be up and running.
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Questions to Consider Before Choosing
Whether you're switching software or evaluating your first purchase, asking the right questions can guide your decision:
- How often do you contact support, and what is the average wait time?
- Are you paying extra for tools you assumed were included?
- Is your current workflow efficient, or are you bogged down by form navigation?
- Have you experienced recent price increases?
If you're new to tax prep software:
- How intuitive is the learning experience?
- Are all your required forms supported?
- Does the software automate data entry and e-filing?
- How secure is client data and where is it stored?
- Is support available evenings or weekends?
- Are there any hidden costs?
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Comparing Features Respectfully
While it's important to compare features across products, be mindful to avoid direct negative statements or unverified claims.
For example, Drake Tax provides flat-rate pricing that includes key features like unlimited users and all state modules. Some providers may use a per-user or per-module pricing structure, which could impact cost depending on the size of your firm. Always verify pricing with each vendor directly, as terms can change.
Support is another area where differences may exist. Drake offers industry-recognized customer service with fast response times. Be sure to ask vendors about their hold times, staffing models, and support hours.
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Why Consider Drake Tax
- Flat Pricing: Includes federal, state, multi-user, and key tools
- Fast Entry: Keyboard-friendly workflows and batch e-filing
- Strong Support: Low hold times compared to other tax software providers and tax-knowledgeable reps
- Integrated Tools: Portals, e-signatures, bank products
- Free Conversions: From ProSeries, ATX, Lacerte, and more
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Resources to Help You Decide
- Drake Tax demo video
- Drake Software Knowledge Base
- The Taxing Subjects blog
- Reader's Choice Awards recognition
By carefully evaluating your needs and the features of each software solution, you can make a confident decision that supports the success of your tax practice.
Disclaimers: All trademarks not owned by Drake Software, LLC ("Drake") that appear herein are the property of their respective owners, who are not affiliated with, connected to, sponsoring, or sponsored by, Drake
