Top Tax Preparation Software for Professionals in 2023

Tax software is the base of the business of a tax preparer. This is why it is the best professional tax software must have the capacity to create both business […]

Tax software is the base of the business of a tax preparer. This is why it is the best professional tax software must have the capacity to create both business returns and individual returns. The requirement of tax preparers differ significantly, Depending on the Requirement for Remote Access, Bookkeeping Integrations, and Budget.

The Top 6 Tax Software Programs for Business Professionals include:

  • ProConnect Tax Online: Ideal for QuickBooks Online ProAdvisors.
  • Drake Tax: Ideal value for Creating 30 or less Business and Individual Returns.
  • CCH Axcess Tax: Ideal Cloud-based Software to Handle the Entire Firm.
  • ProSeries Professional: Ideal overall Professional Tax Creation Software.
  • Tax Act Professional: Ideal Value for Creating Limitless Returns.
  • Lacerte: Ideal for Complicated Tax Returns like Consolidations.

Table of Content

What are the Best Professional Tax Software?

Here is a table to decide the best professional tax software:

ProductUnlimited ReturnsPay-Per-Return PlanReturn BundlesForm 1040Form 1120, 1120s and 1065Form
Form 990Form 706 and 709
Pro SeriesUSD 2868 every year for unlimited 1040s

Custom Pricing for unrestricted business and individual return
USD 594 per year + return charge beginning at USD 45 state and USD 53 federalCustom pricing for 200 business and individual returnYesYesN/AYesYes
Tax Act ProfessionalUSD 735 for unrestricted 1040s

USD 1325 for unrestricted business and individual returns
Intuit LacerteQuote upon requestUSD 746 every year along with USD 91 every 1040 and USD 118 every business returnQuote upon requestYesYesYesYesYes
Intuit ProconnectN/ABegins at USD 117.95 for business returns and 94.95 for individualsN/AYesYesN/AYes709 only
Drake SoftwareUSD 1825 for unrestricted business and individual returnUSD 44.90 for all business returns

USD 345 comprises 10 1040s

USD 29.99 for extra 1040
CCH AxcessQuote upon requestN/AQuote upon requestYesYesYesYesYes

How to Select Your Professional Tax Creation Software?

The ideal tax software for your related tax firm is based on multiple factors like:

  • Type of Returns: Some software provides distinct savings if you intend on creating only individual returns minus any business returns.
  • Return Issue: All professional software cannot deal with all the complications in a tax code. If you intend to prepare highly complex returns such as gas and oil partnerships, high-end tax software is recommended. The expense will be more but you will be able to compensate that with the fees for the particular complex returns.
  • Number of Returns: A few software provide per-return rating while others provide unrestricted returns for one price. If you require only to create a few returns, it is recommended not to buy unlimited returns.
  • Remote Access: A majority of the professional tax software programs are fitted locally and it is very complicated to use remotely without hampering security. If you intend on enabling tax creators to work remotely, purchase a Cloud-based Software or a package which is empowered to be hosted for an extra fee.

ProSeries Professional Tax Creation Software

This software has several advantages and disadvantages, some of which include:

Provides several packages to meet your requirementsZero upfront cost for a few plans
Select to add data via quick entry sheets or formsFor a state return, pay-per return pricing implements an extra charge
Assimilated billing clockFor a majority of the plans, multi-user access is an extra fee

What is the Pricing of ProSeries Professional?

  • Choice 200: Custom pricing
    • Comprises any combination of around 200 business returns and individuals
    • Extra returns can be bought for the particular pay-per return rates
  • Power Tax Library: Custom pricing
    • Comprises unrestricted state and federal business and individual returns.
  • Pay Per Return: USD 594 every year does not comprise any returns
    • Every business return is USD 126
    • Every Individual return is USD 98
  • 1040 Complete: USD 2868 every year comprises unrestricted state and federal tax returns.
    • Business returns can be included for the particular pay-per return rates

Note: It is possible to sign up for a free trial and get the 2021 version without the capacity to e-file or print.

What are the Features of ProSeries Professional Tax Preparation Software?

ProSeries Professional offers multiple tools that will meet the requirement of mid-sized and small businesses. Apart from Form 500 returns, the software provides several packages and use several supportive resources like tax planning suggestions:

  • Electronic Filing: You can see and monitor the status of the e-filed returns and also handle them. Lacking client data is also filed and then monitored. Data must be added prior to the return in sent.
  • Import from software QuickBooks: It is possible to import a trial balance from the particular QuickBooks Desktop Accountant very conveniently.
  • Forms and Input Supervision: K-1 data imports a set of data automatically to individual returns. The particular Intuit link portal enables clients to upload their set of documents in a systematic and timely manner.
  • Hosting and Integration: Starting at USD 120, hosting is available for every user every month. The ProSeries software hosting can be used on any device anywhere, but the information is saved in the cloud, enabling for flexible workflow.
  • Client Tools: It provides a plethora of resources for your respective clients like the capacity to prepare checklists for the products clients require for the tax return for every year. Client-oriented editable invoice and billing options are present as well, like flat rates, charges per form, hourly fees, etc.
  • Tax Planning: This tax preparation software will issue a list of around 70 tax planning advices that will help your clients with cutting down of future taxes. The tax planner assumes expenses, income, and withholdings, along with tax payments for upcoming tax years.

Why Choose ProSeries Professional?

ProSeries Professional is a robust tax preparation software offered by Intuit. It is the perfect fit for those accountants who are in search of desktop software and have a forms-based interface which can import account balances from your particular QuickBooks Desktop. This tax software can process any tax return comprising Forms 1120, 1065, 990, 709, 1040, 1120s, 1041, and 706. But, it cannot create Form 5500 returns.

It includes all the characteristics you would imagine from a current tax software like downloading tax forms from the respective financial institutions, e-file management, and K-1 data transfers in the middle of returns. It provides four pricing tiers like a good option for small firms creating 200 or lesser returns every year or companies that emphasize particularly on individual returns. The price is affordable, particularly if you have expertise in individual returns and buying the 1040 complete package.

ProConnect Tax Online: Best Tax Software for QuickBooks Online

What are the Important Aspects of ProConnect Tax Online?

Here are the crucial features of ProConnect Tax Online:

  • Handles tax returns from the particular QuickBooks Online Accountant dashboard
  • For high-volume preparers, the pay-per-return cost is highly expensive
  • Cannot deal with additional complicated returns like consolidations
  • The Cloud-based system deletes information technology complications
  • A zero annual license fee is required
  • The option for limitless returns is not available

What is the Pricing of ProConnect Tax?

Every user should pay per return on a particular sliding scale depending on the overall number of returns bought:

  • Individual Returns: Begins at USD 94.95 each for the nine first returns and then eventually decreases to USD 47.95 for every return over 200.
  • Business Returns: Begins at USD 117.95 for the initial nine returns and then eventually decreases to USD 59.95 for every return over 200.

Intuit is providing 35% of the rates added above for the initial nine customers that the given pre-order returns before Mar 15th, 2023.

What are the Important Features of ProConnect Tax?

Any company that is an expert in QuickBooks Online accounting must impart serious thought to ProConnect Tax since it offers important features like document management and lacks data review. It also includes a K-1 package along with a tax planner with the capacity to assign several case scenarios.

  • Tax Planner: You can plan for the future with your Schedule C and 1040 clients by experimenting with competitive tax scenarios. These scenarios comprise creating multiyear comparisons for nearly three years and creating several case scenarios. It is also possible to determine tax liability along with importing diagnostics.
  • E-filing: Check the e-file status of all the clients with the help of a dashboard that enables you to filter, sort, and see for rejections. It is also possible to provide e-signature signing that enables your clients to review and then sign the particular forms from any location on any particular device.
  • K-1 Package: S Corporations and Partnerships can create letters K-1 state forms, K-1 forms, and other relevant forms for every individual shareholder or partner.
  • Document Handling: It enables you to upload documents, save them and check them when you perform the return with the opportunity to download the forms if needed. It is also possible to customize the request for tax detail, depending on the data of the last year.
  • Absent Data Analysis: ProConnect is empowered to identify missing data fields, to enable you to find any gaps before filing. As a result, it makes the process seamless to find out any issue that will pave the way for quicker review time.

Why Select ProConnect Tax?

In case you are an active and regular QuickBooks Online user, it is anticipated that you will love the ProConnect Online which is created specifically to serve the tax creation function for companies centered on QuickBooks Online accountants.

The programs can be managed from a particular single dashboard in QuickBooks Online Accountant.

ProConnect is Tax is valued on a pay-per-return basis with zero annual fees. QuickBooks Online ProAdvisors can attempt ProConnect at any cost till the return is filed. It is a strong software and it can prepare returns for Forms 1120, 1040, 1041, 709, the 1120s, 1065, and 990. But, it cannot prepare forms 706 and 550 returns. The biggest disadvantage is that it is available as per the Pay-per-return package.

TaxAct Professional: Preparing Unlimited Returns

What is TaxAct Professional?

Here is an overview of TaxAct Professional:

  • Widespread support options
  • Extra fee applicable for e-filing and state returns in Professional Federal Edition
  • Cannot create Forms 706, 5500, and 709
  • Data backup online
  • Zero tax research applicable present
  • Huge value for limitless returns

What is the Pricing Charged by the TaxAct Professional Software?

Here is a detailed overview of TaxAct Professional pricing:

  • 1040 Bundle: USD 735 comprises the 1040 edition along with all states and limitless e-filing
  • Professional Federal Edition: USD 150 per edition (Forms 1041, 1120, 990, 1040, 1065, and 1120s) along with USD 35 for every state and USD 15 for every e-file.
  • Limitless: USD 1325 for all federal editions along with states and limitless e-filing.

Note: All the packages are for one user license and comprise committed technical assistance.

What are the Features of TaxAct Professional Software?

TaxAct professional is one of the best options for accounting firms that have a limited budget and a low-priced cost for limitless returns. Even though it does not mix with tax research requests, its other characteristics, like admission to ProAdvance and virtual practice competence, compensates for its drawbacks. TaxAct Professional also supports its work with a money-back guarantee scheme and admission to committed technical assistance:

  • Virtual Practice Competency: It has associated with TaxDome to provide you admission to more than 20 key practice management characteristics, comprising customizable customer relationship management (CRM), automated workflows, and limitless and safe file storage. It also enables limitless e-signatures and possesses a client portal along with a mobile app.
  • Robust Reports and Tools: There are several reports and tools present, comprising TaxTutor guidance that assists to highlight deductions, complicated tax law changes, and plans along with tips. You can also see the what-if scenario tax computers, summaries, depreciation, and disposal custom client reporting.
  • Money-back Assurance: If you are not 100% happy with TaxAct experts, just return the product and request a full refund within 30 days. You’ll get your money back and you will not be asked any questions.
  • Admission to ProAdvance: TaxAct ProAdvance software is an online resource center. It offers resources and information to boost your practice.
  • Committed Assistance: TaxAct Professionals provide easy access to assistance tools. There’s also an assist page to fix issues and an all-inclusive knowledge base. The support team can be reached via email and phone.

Why Choose TaxAct Professional?

TaxAct Professional is an economical and reasonably priced leader in professional tax software and it does not compromise on its features. There are many add-ons that enable you to modify the software depending on your needs, comprising payment receipt and practice management characteristics. You can use marketing capabilities and simplify client returns. TaxAct Professional provides a money-back guarantee to all its respective customers, permitting you to return it for a complete refund within 30 days, in case you are not satisfied completely.

Drake Tax: Best Value for Fewer Individual & Business Returns

What are the Important Aspects of Drake Tax?

Here are the crucial aspects of Drake Tax:

  • Limitless users and preparers added in all packages
  • Navigation from the input window to forms is not instinctive
  • Cannot create consolidated returns
  • Create forms 1120, 1065, 706, 1040, 1120s, 990, and 1041
  • In all packages, all 50 states are added
  • Unable to create Form 5500 returns

What is the Pricing of Drake Tax?

Here is the overview of the Drake Tax pricing for Unlimited and Pay per Return:

  • Unlimited: USD 1825 for limitless returns comprising states
  • Pay Per Return: USD 345 comprises 10 individual returns, USD 44.99 for business returns, and USD 29.99 for extra individual returns. The price comprises limitless states at every return.

Drake is presently providing USD 100 for the limitless plan, however, there is no deadline provided for this particular deal. Either of the package can be presented on the cloud for an extra fee of USD 99 every month for every user.

What are the Features of Drake Tax?

Drake Tax is not just a great item in professional tax software, it also includes multiple useful features, like DoubleCheck and Look Bac. It will save you time when you are creating returns. Not to mention, this software has a hardware add-ons option along with paperless availability that streamlines the process:

  • DoubleCheck: It is a Drake Tax diagnostic tool that can monitor any changes that influence authenticated data entry products. In case some alterations are perceived, DoubleCheck will highlight them for automatic review.
  • Look Back: This feature enables you to see the last year’s tax return data that an assist while comparing data. It is suggested to use a keyboard shortcut to tie between the present view and Look Back.
  • SecureFilePro: If you’re searching for the option of paperless, with the help of SecureFilePro, users can acquire source documents from their respective clients online for the preparation of tax.
  • Hardware add-ons: You can make tax preparation easy with the help of optional hardware add-ons, like an e-signature pad, that enables clients to digitally sign returns.
  • Multistate Returns: Drake Tax enables you to make a limitless number of state returns for every federal return for no extra charge.

Why Choose Drake Tax?

Drake Tax has been operating since 1977. It is not more expensive than its competitors. This competent software has all the state programs. Not to mention, you can create several state returns for one business without any additional cost. Its compelling cost of USD345 for 10 individual returns along with the pay-per-return cost for business returns turns it to a perfect fit for tax companies that create 30 or lesser business and individual tax returns.

The stage has the majority of the identical features as more costly software comprising client organizers, multistate returns, and MFJ to MFS comparison. The e-file center functions like the majority of the professional software packages and comprises an option to include electronic client signatures, hence there is no point to print out Form 8879 for your respective customer to sign.

Lacerte: For Complicated Tax Returns

What are the important aspects of Lacerte Tax Software?

Here are the important aspects of Lacerte Tax software:

Combine subsidiary tax returnsForm-based data entry is not needed
Finish complicated oil and gas returnsZero upfront pricing
High-end software that offers a pay-per-return optionPay-per-return plan needs an annual fee of USD 746

What is the Cost of Lacerte Tax Software?

Here is an overview of Lacerte tax software pricing:

  • Lacerte Unlimited: Offers limitless business and individual returns for a specific price
  • Lacerte 200 Federal 1040: Offers 200 individual returns for a specific cost and business returns for a particular pay-per-return fee.
  • Lacerte REP: USD 746 Yearly Plus:
    • USD 118 Per Business Return
    • USD 91 Per 1040

What are the Important Features of Lacerte Tax Software?

Lacerte tax software is a robust solution that provides several tools to assist simplify your practice. Such tools include an extensive form of library, several planning and tax analysis tools, and a paperless option for arranging and accumulating tax detail. Lacerte tax’s missing customer trial balance and data tool will also prevent wastage of time:

  • E-Organizer: A paperless option for the business and accumulation of data for the process of tax filing. E-Organizer helps with sending forms, questionnaires, and important emails to clients. It offers them passage to a personalized password-enabled executable file that comprises detailed data on how to utilize the organizer.
  • Trial Balance Utility: The trial balance utility assists to create a chart for accounts, editing journal entries, analyze trial balance reports, etc. Not to mention, it can also import data from EasyACCT and QuickBooks very conveniently that can be exported to Excel very easily.
  • Complete Form Library: This software provides you access to nearly 5700 forms and more comprising K-1s, multistate, and 5500 benefit plan returns that allow you to facilitate several businesses and clients.
  • Lacking Client Data Tool: The inherent missing client information utility tool recognizes fields that lack information and then delivers requests to your potential clients for the needed data and documents. It cuts downs the hassle of monitoring client data by enabling tax preparers to highlight the lacking field for any reference in the future or till the data is acquired.
  • Tax Planning and Analysis Tools: With the blend of Tax Analyzer and Tax Planner, you have to use sophisticated tax planning and analysis tools. Not to mention, this tax planner offers customized plans for every client’s future liability depending on present and future federal and state tax rates. Tax analyzer helps professionals with handling their financial health and liabilities along with red-flagging amounts that are expected to audit an IRS audit.

Why Choose Lacerte Tax Software?

Intuit’s high-end tax preparation software Lacerte is used to creating the most complex tax returns like returns for oil and gas companies and consolidated returns. It can also import balances from QuickBooks Desktop and then integrate with the Practice Management from Intuit. Lacerte tax software is very costly, however, with complex returns, you will be able to recoup the expense via client fees.

You can create all business and individual returns comprising Forms 1120, 1065, 1045, 990, 1041, and 1120. It creates gift and estate tax returns form 706 and 709 and form 5500 benefit plan returns. It comprises time-saving features like importing forms from a particular financial institution, sending capital gains or loss transactions via a spreadsheet, and combining them with QuickBooks Accountant Desktop.

CCH Axcess Tax: Cloud Tax Software

What are the Important Aspects of CCH Axcess Tax Software?

Here are the important aspects of the CCH Axcess Tax software:

Cloud-based system deletes IT issuesNo pricing is present without talking to the sales representatives
In-program links to the CCH IntelliConnect research serviceNot possible to import data from QuickBooks files
Combines with other CCH Axcess modules for a specific cloud-based business managementSeveral features need add-ons for an extra cost

What is the Cost of the CCH Axcess Tax Preparation Software?

Here is the pricing for CCH Axcess tax preparation software:

Easy start for small businesses:

  • All States
  • 150, 300, or 500 Returns
  • All kinds of Returns

Note: Bigger firms can modify a package to address their requirements. The details of the pricing are not added on its website.

What are the Important Features of CCH Axcess Tax Preparation Software?

CCH Axcess tax software is a complete cloud-based software program for tax experts. It combines with other CCH Axcess modules to offer more characteristics to assist you to run the practice. The user interface is smooth and easy to operate and it enables you to prepare a tax organizer for your respective clients.

The tax research and e-filing capability tools save time for your client and you and robust support options make sure that you will be able to solve any issue that you may encounter when using this software.

  • Engaging User Interface: The user interface of CCH Axcess Tax is easy to steer, with a Quick Access toolbar. This toolbar can be modified to meet the requirements of any firm. The dashboard provides you with quick access to all the concerned tasks, projects, and concerned client documents. Not to mention, the users will also get notifications when any particular return requires attention.
  • E-filing Capability: CCH Axcess Tax provides a comprehensive e-filing for all assisted forms, and the users can see their status very smoothly, rejections, and viewing alerts. Digital tax workflow is also present that helps in automating the complete tax preparation procedure.
  • Tax Research Tools: CCH AnswerConnect is a strong resource for complete tax research that provides clarifications of tax regulations and how it is relevant in real-world scenarios.
  • Tax Organizer: Users can prepare organizers for all customers that can be printed and then emailed. Furthermore, they can also be added to the particular client portal, enabling clients to use them as per their requirements. Clients can also add the requested documents to the particular CCH Axcess Portal.
  • Robust Support Options: There are many help and support options present, mainly product guides. A searchable knowledge base, product guides, and user videos. It is also possible to download updates or product enhancements from the website. All listed users can use email, telephone, or chat support.

Why Should We Select CCH AXcess Tax?

CCH Axcess Tax software is a single module of the particular CCH Axcess cloud-based business management software. It is perfect for small and mid-sized accounting companies searching for more advanced than just tax preparation software and favoring cloud-based applications. It mixes with CCH IntelliConnect which is a top tax research service to offer in-program links to the concerned tax authorities.

Even though it is disappointing that the particular CCH Axcess tax website does not offer more detail on the features of the platform, it is expected to have all the relevant features you require to create any return. Apart from the lack of details that are added to the list due to its integration with other modules of CCH Axcess for cloud management for your overall firm.

How Tax Software are Evaluated for the Tax Preparers?

While you are determining the ideal tax software for tax preparers, we have considered the requirement for tax professionals who create business and individual tax returns.

The cost of the software is a major concern just like the features like client-portal integration, data import, and sending invoices and returns for e-payment and e-signature.
Depending on the requirement of bookkeepers, tax professionals, and accountants, we determine the best tax software for professionals such as:

  • Electronic Signatures: We check whether the tax software can accumulate digital signatures for the purpose of e-filing.
  • Features: The software must have all the features that modern software should have like easy data input, e-file management, and integration among tax forms, and other federal and state forms.
  • Seamless: We take a look at how data can be integrated into particular worksheets and smoothly the tax forms can be reviewed.
  • Practice Management Integration: We evaluate whether the tax software combines with the particular practice management software.
  • Pricing: We determine what is the cost of the tax software comprising the annual fees and the money you are required to pay if any as per the tax return.

You should select the kind of software that offers a pricing option that meets the number and kind of tax returns you create. But, you must also consider the requirement to create complex returns and the time you can save with the accounting software and practice management integrations.

We have talked about all the leading tax preparation software in detail in this article. Still, if you need any assistance or have a concerning query, just get in touch with our team of experts today.

Frequently Asked Questions

What kind of Software should Tax Preparers use?

The paid tax preparers should use professional tax software that enables them to sign the particular return as any paid preparer and then e-file the particular return as any ERO (Electronic Return Originator).

Which one is the Best Tax Software for CPA Organizations?

A tax software for your specialized public accountant firm is based on the type, number, and complexity of the returns anticipated during filing. Take, for instance, the Lacerte is usually considered the best software for highly complex returns while TaxAct Professional is ideal for filing limitless individual returns.

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