The Role of Professional Tax Software in Growing a Tax Preparation Business

As a tax professional, you know you live in an ever evolving world. If you want to keep pace and grow your business, you also know that you can’t stick to manual processing because of the billable time it costs. This is how professional tax preparer software comes in handy. These are basically computer programs that allow you to work with greater efficiency, ease and value for your clients.

Below are some of the key advantages of using tax preparer software for professionals:

Flexibility

Most, if not all, tax programs for professionals let you view multiple windows for multiple data – for instance, Input, Forms, etc. – in a single screen. Forms will also usually be synced with one another, so if you want to, say, view Itemized Deduction, you will also be automatically shown Schedule A and last year’s Itemized Deductions.

Straightforward Labeling and Quick Data Extraction

Good tax preparer software comes with a feature that lets you automatically label and organize the source documents of your clients, which means you’ll find it much easier to find and identify them in your e-files.
You can also move data from the processed source documents directly into the software, reducing data entry considerably.

eSignature Convenience

Professional tax software generally comes with eSignature, which allows you to save time and cash, avoid IRS issues and more. You and your clients can simply enjoy a secure, efficient and highly convenient way of signing tax documents digitally.

Quick and Trouble-free Error Correction

We all know that accuracy of returns is crucial to reducing IRS rejections. With good professional tax software, you can use diagnostic tools that let you spot potential inconsistencies in tax information, check your work with an overriden entries list, and navigate e-filing errors linking to the particular form that requires correction. On top of that, these programs generally allow you to easily go over the return summary, including forms.

Refund Maximization

Lastly, if you pick the right tax preparer software, you can have a feature that lets you check out a myriad of tax scenarios for your clients and then save them for reference in the future, add new data or replace existing data in the current return. Efficiency is important for any tax preparation professional as it not only retains old clients but also keeps new ones coming.

As expected, tax preparation software for professionals can vary widely on many fronts, from features to pricing to support and more. Before selecting one, do your homework. And remember that it’s best to consider more than one prospective software. If you have options, you have points of reference that can help you decide whether a specific solution is indeed the one you’re looking for.