Tax preparation seems like a simple job, but it requires expertise, experience, and the right tools. The best tax software for CPAs and accounting firms helps in making this job easier with automation and other powerful features. Using this software is easy, but still, it also needs some skills to make the right use of these tools. As people don’t have time to manage their taxes, prepare and file taxes or learn these tools, they often opt for outsourced tax preparation services. This increases revenue-generating opportunities for CPAs and tax preparation service providers.
As business increases, the pressure of managing all tax preparation jobs also increases. CPA tax preparation requires a more meticulous approach to keep customers happy. They need to make sure that they have the best tax software for CPAs and accounting firms to provide satisfactory service to their clients by filling in flawless tax returns.
Must-Have Key Features in Your Tax Preparation Software
There are several CPA tax preparation software tools available in the USA to help accounting firms to do tax preparation jobs accurately and efficiently. However, it is necessary to identify the right tool that has the right features and characteristics. If you are running a CPA firm that offers the best-outsourced tax preparation services, then your tax preparation software must have the following factors:
1. Streamlined Data Entry and Integration
CPA and accounting firms manage massive data entry while performing tax preparation jobs. They have the complex job of managing different bills, invoices, cash memos, etc. of each customer and performing data entry. This is a tedious and error-prone job, which can be automated by the best tax software for CPAs and accounting firms. Automation of data entry not only ensures that all entries are accurate but also ensures that no value gets missed out by mistake.
The right accounting tools are absolutely flexible, and they provide simplified third-party integration. This further streamlines the job of data management because now data can be automatically stored in the tax preparation software.
2. Comprehensive Compliance and Reporting
The job of a CPA firm is not just preparing taxes and filling it, but they also need to make sure they comply with legislation and generate easy to comprehend reports. This job can be completely or partially automated using the right CPA tax preparation software. The best platform lets accountants generate different reports to provide the required information to clients.
3. Client Collaboration and Management
The best tax software for CPAs and accounting firms also provides workflow automation and simplified collaboration options within the software. This makes things easier because reports and data can be exchanged between a CPA firm and client at their fingertips and none of them need to worry about managing multiple tools, one for communication, one for data sharing, and one for collaboration. A single platform will handle all the required jobs.
These are the top 3 must-have factors in the best tax software for CPAs and accounting firms to provide the best-outsourced tax preparation services to clients in the USA.
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Top 10 Best Tax Preparation Software for CPAs and Accounting Firms in the USA
1. CCH Axcess Tax
Features
- Specific CCH Axcess Tax software is available for CPA tax preparation
- Forms for automated calculations of taxation
- Automated schedules for the USA federal
- Supports open integrations.
- Cloud solution
- Customized view availability
Benefits
- It is highly accurate and efficient
- It reduces the job of data entry
- It saves time and other resources
Pricing
- You need to contact the support team to get pricing for this best tax software for CPAs and accounting firms
2. ProSystem Fx
Features
- A complete product suite
- Tax preparation forms
- Lookup for data auto-filling
- Worksheets and lookup forms
- Office Manager
- Interactive reports to identify inconsistencies
- Return Diagnostics
- Integration support
Benefits
- It has a Pay per Return option to make it more convenient for different scaled users.
- It provides a remote access facility to use the system from anywhere, at any time, which makes it perfect to offer outsourced tax preparation services.
- It consolidates collaboration.
- It dramatically boosts productivity.
Pricing
- To get a price for this best tax software for CPAs and accounting firms, you need to connect with its sales team. According to reviews, it is one of the most expensive tools in this industry.
3. H&R Block
Features
- Four different ways to prepare tax
- Real-time refund calculation
- Automated federal e-files
- Consolidated security
Benefits
- It is extremely easy to migrate from TurboTax to H&R Block.
- It is affordable for any individual and business, which makes it perfect to offer outsourced tax preparation services.
- It is also available for free.
Pricing
- This best tax software for CPAs and accounting firms is available in four different pricing models:
- DIY system is available for free.
- File with a tax pro version costs 85 USD + Additional state fee
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4. UltraTax CS
Features
- Management of document
- Management of data storage
- Management of compliance
- Workflow management
- Flexibility to setup multiple monitors
- Automated tax calculation
- Data import and export
- Verification of data
- Electronic signature
- Reporting
Benefits
- It is extremely easy to use.
- It is the best tax software for CPAs and accounting firms because it ensures 100% accuracy
- It helps in generating quarterly and annual plans.
Pricing
- The pricing starts at 2500 USD per year.
5. Lacerte Tax
Features
- Tax analysis
- Tax planning
- Thousands of forms to cater to different clients
- Missing client data tool
- Trial balance
- Paperless tax filing processes
- Automated tax calculation
- Diagnosis of tax errors
- E-signature
Benefits
- It saves time.
- It provides end-to-end tax preparation and filing solutions.
- It provides secure access and processing of returns.
- It is the best tax software for CPAs and accounting firms for managing multiple clients.
- It assures 99.99% uptime SLA.
Pricing
- To get the price of this tax preparation software, you need to contact the sales team. However, the online portal suggests that it starts at around 449 USD per year.
Must Read : Step by Step Process for Outsourcing Tax Preparation Services from CapActix
6. Drake Tax
Features
- Tax planner
- E-signature
- Automated data flow
- Backup and restore
- Archiving of returns
- Tax estimator
- Scheduler
- Tax Comparison
- And more
Benefits
- It is one of the best tax software for CPAs and accounting firms, which provides excellent security.
- Its collaboration features are highly reliable.
- It makes error detection and diagnosis very easy.
- It adds PIN and consent screens to make customer authorization easy and systematic.
Pricing
- This CPA tax preparation software has three different plans.
- Pay per Return plan starts at 355 USD.
- 1040 – New plan starts at 1620 USD.
- The pro plan starts at 1970 USD.
7. GoSystem Tax RS
Features
- A comprehensive tool for tax compliance
- Data import and export
- Software access to multiple users
- Third-party integration support
- Customizable software
- Simultaneous form view
Benefits
- It reduces data entry jobs with automation.
- It is the best tax software for CPAs and accounting firms because it provides diagnostic reports to avoid rejection of returns.
- It is highly scalable.
Pricing
- Pricing details for this software are not available online.
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8. ProSeries
Features
- Management of users
- Management of refund
- Assessment
- Verification
- Tax calculator
- Import and export
- Invoicing and billing
- Integrating add-ons
- Alerts, reminders, and notifications
- E-signature
Benefits
- It provides accurate tax preparation with automation.
- It is extremely easy to provide access to multiple users.
- It encourages paperless processing.
- It automates multiple calculations to reduce errors.
Pricing
- The pricing of this best tax software for CPAs and accounting firms is segmented into two packages.
- The basic unlimited package starts at around 1119 USD per year.
- Professional unlimited pricing starts at around 2144 USD per year.
9. Intuit ProConnect
Features
- Import and export data
- Automated data entry
- Flexible integrations
- Templates and forms
- Document management
- Workflow automation
- Reports
Benefits
- It is the best tax software for CPAs and accounting firms as it provides integration with tools like Google Drive to import data and eliminate data entry.
- It is excellent in automating the workflow of tax preparation and filling.
- It provides unlimited access to the software by unlimited users.
- It ensures the encryption of data for reliable security measures.
Pricing
- The pricing of this solution is available in different packages for individuals and business return processing.
- The individual plan starts at 24.02 USD per return.
- The business plan starts at 26.62 USD per return.
10. Turbo Tax
Features
- Tax refund calculator
- Audit trail
- Verification of data
- E-filing
- Compliance
- Forms for payroll
- Crypto support
- Tracking of activities
- Alerts and notifications
- K -1 reporting
Benefits
- You can avail yourself of the free version of the software.
- This is one of the best tax software for CPAs and accounting firms as it provides prompts, which makes it easier to prepare and file tax returns for clients.
- It has on-demand expert assistance to help you resolve your queries to provide flawless services to clients.
Pricing
- It has multiple pricing options and is categorized into three different types.
- Do it yourself package starts at 129 USD.
- Assisted package starts around 99 USD.
- The full-service package starts at around 219 USD.
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The Importance of Training and Support for Utilizing Tax Preparation Software Effectively
The best tax software for CPAs and accounting firms is highly in demand because they automate several jobs to avoid errors. Moreover, the software providers keep on adding new features to these tools. Sometimes, even for the most experienced firms, it becomes difficult to manage using the software because these software solutions constantly get new features. The assistance from the software provider company is often pretty expensive.
All the aforementioned factors make it necessary to contact a firm that offers training and technical support to use the best tax software for CPAs and accounting firms at their best. The company will provide the required support to set up the solution and even configure it for you, so you can increase returns from the software. Training will make sure your team can maximize returns from the solution you are using for tax preparation and filing.
Frequently Asked Questions (FAQs)
1. How do I choose India’s right tax preparation outsourcing company?
Selecting the ideal outsourcing partner involves considering factors like experience, expertise in U.S. tax laws, security measures, technology infrastructure, client reviews, and scalability options. Research and compare providers for a well-informed decision.
2. What is the typical turnaround time for outsourced tax preparation tasks to India?
Turnaround times vary depending on the complexity of tax returns and the service provider’s workload. Discuss expected turnaround times with your chosen company to set clear expectations.
3. Do Indian tax preparation outsourcing companies offer ongoing support and collaboration?
Yes, most outsourcing companies maintain regular communication with their clients, providing updates and reports and addressing any questions or concerns. Look for a provider that offers support and collaboration that suits your needs.
Conclusion
Using the best tax software for CPAs and accounting firms is necessary to ensure accuracy and seamless operations for clients. The right software helps automate different workflows, manage multiple customers, and reduce tedious jobs. These tools also provide effective collaboration features, so CPA firms can collaborate with remote teams and customers. Customers will be able to share data digitally and accounting firms and CPAs will be able to process data for flawless tax preparation.
As there are multiple options of the best tax software for CPAs and accounting firms available, it is necessary to look for the right features and factors that can help companies perform tax preparation jobs easily and accurately. Keep the top 10 software shared in this article in consideration while investing in tax preparation software. You must also make sure that your software for tax preparation and filing has the major factors shared in this blog post. Those characteristics will ensure you can automate operations, augment efficiency, boost productivity, eliminate errors, and leverage several other advantages to become a reliable tax preparation service provider.
We, CapActix, are one of the leading firms that offer year-end services and tax preparation services to accounting firms and CPAs in the USA. We use multiple best tax software for CPAs and accounting firms to make sure our customers receive services as per their expectations. We are renowned for our diverse services and cost-effective rates for CPAs and accounting firms in the USA. If you are looking for the right partner to manage tax preparation services for your CPA or accounting firm, then we are here to help. To discuss your requirements, connect with us via biz@capactix.com or call us at +1 201-778-0509.
