Accountants do not get to choose whether or not they want to use software for accountants, bookkeeping software for accountants, top 10 accounting software, financial statement software for accountants. If you are in practice, you need to be using it.
Today, I will dig into the basics so you can get started with the best accounting and tax practitioners software for your needs.
Xero
» Why You Should Buy This:
Xero is all-inclusive online accounting software with an uncomplicated and robust set of features. The software brings together every critical aspect of your business in one place, be it accounts, contacts or invoices, letting you be in control all the time. That way, it becomes an ideal option to go with when it comes to handling your books of accounts in the most effortless yet accurate manner.
And that’s not all. Xero easily syncs with your bank accounts and provides a clear picture of your financial standings whenever you need it. It also automates repetitive tasks, such as reporting and invoicing, to accelerate things further.
» Who Is It For:
As a cloud accounting software solution, Xero fits perfectly well with the accounting needs of small businesses, bookkeepers and accountants. It also streamlines operations for self-employed individuals and start-ups that have less complex accounting requirements. If you are someone who is just starting out to take hold of your books, this can be your go-to system. In other words, it can simplify things for, let’s say, a local cafe and a fashion retailer with as much accuracy and efficacy.
» Why We Picked It:
Xero grabs the second spot on our list of the best accounting software for small businesses due to its all-in-one features packed into a simple-to-navigate interface. It enables you to do every vital task you would expect out of it – from tracking and paying bills to claiming expenses to monitoring projects to bank reconciliations.
Moreover, the solution includes built-in, easy pay runs for employees, along with the functionality to integrate with a third-party payroll app. Its real-time collaborations are smooth, and so are its reporting functions. We particularly liked the seamless way in which it offers anytime, anywhere access across devices.
» Pricing Details:
Xero is available in three different plans:
› Starter – $20 per month
› Standard – $30 per month
› Premium – $40 per month
All plans come in with 24/7 support online. You could also opt for its 30-day free trial.
» Pros and Cons:
Pros:
› A comprehensive accounting system for small businesses & individual professionals
› Offers hassle-free integrations with a variety of tools & solutions
› Provides easy customization to suit your workflow
› Real-time collaboration helps teams to work together without hindrance
› Powerful reporting presents an accurate picture of your finances as & when you need
› Remote access & dedicated mobile app ensures work doesn’t halt
› Inventory management facilitates smoother business operations
Cons:
› For an established entity with complex bookkeeping needs, it offers limited features.
» Reviews & Ratings:
Xero greatly impresses users with its easy to use functionality, precision and customer service. Here’s a quick lowdown on how the system fares on top-rated software review sites:
ProSeries Professional: Best Overall Professional Tax Preparation Software
ProSeries Professional is a good fit for accountants looking for desktop software with a forms-based interface that can import account balances from QuickBooks Desktop. ProSeries offers four pricing tiers with a great option for small firms that prepare less than 200 returns per year or firms that focus almost exclusively on individual returns. ProSeries pricing starts at $539 per year plus $82 per return, including charges for both the federal and state returns.
 | Pros: | Cons: |
| Offers multiple packages to fit your needs | Pay per return pricing charges extra for a state return | |
| Visit ProSeries Professional | Choose to enter data through forms or quick-entry sheets | No upfront pricing for some plans |
| Integrated billing clock | Multi-user access is an additional fee for most plans | |
| ProSeries Professional PricingPay per Return: $539 per year doesn’t include any returnsEach individual return (federal plus one state) is $82Each business return (federal plus one state) is $111Choice 200: Custom pricingIncludes any combination of 200 individual and business returnsAdditional returns can be purchased for the pay per return rates1040 Complete: $2,602 per year includes unlimited federal and state individual tax returnsBusiness returns can be added for the pay per return ratesPower Tax Library: Custom pricingIncludes unlimited federal and state individual and business returns |
Our Expert Opinion
ProSeries Professional is reliable tax preparation software from Intuit. It can process almost any tax return, including Forms 1040, 1120, 1120S, 1065, 1041, 990, 706, and 709. However, it cannot prepare Form 5500 returns. The price is very reasonable, especially if you specialize in individual returns and purchase the 1040 Complete package. It has all the features you’d expect of modern tax software like e-file management, downloading tax forms from financial institutions, and K-1 data transfers between returns. There are a few complex functions that ProSeries cannot perform like consolidating subsidiary returns and oil and gas returns.
ProConnect Tax Online: Best Tax Software for QuickBooks Online ProAdvisors
If you are an avid user of QuickBooks Online, you’re probably going to like ProConnect Tax Online. ProConnect Tax Online is designed specifically to serve the tax preparation function for firms centered on QuickBooks Online Accountant. The programs integrate very tightly and can be managed from a single dashboard inside QuickBooks Online Accountant. ProConnect Tax is priced on a pay-per-return basis with no annual fee. QuickBooks Online ProAdvisors can try ProConnect for free and not pay until the return is filed.
 | Pros: | Cons: |
| Cloud-based system eliminates information technology (IT) headaches | Pay per return pricing is expensive for high-volume preparers | |
| Visit ProConnect Tax Online | Manage tax returns from your QuickBooks Online dashboard | No options for unlimited returns |
| No annual license fee | Cannot customize client letters and invoices | |
| ProSeries Professional PricingAll users must pay per return on a sliding scale based on the total number of returns purchased.Business returns: Starts at $117.95 each for the first nine returns and gradually decreases to $59.95 for each return over 200.Individual returns: Starts at $94.95 each for the first nine returns and gradually decreases to $47.45 for each return over 200. |
Our Expert Opinion
ProConnect Tax is a great companion program for firms specializing in providing client services with QuickBooks Online. It’s powerful software that can prepare returns for forms 1040, 1120, 1120S, 1065, 1041, 990, and 709. However, it can’t prepare form 5500 or form 706 returns. The biggest drawback to ProConnect is the lack of a plan for unlimited returns. If you’re a high-volume return preparer, you need to compare the cumulative per return cost to the price of some unlimited plans to see if the convenience of ProConnect is worth the potential extra cost.
Drake Tax: Best Value in Professional Tax Software
Drake Tax is not just a little bit cheaper than its competitors―it’s a fraction of the price. Yet, Drake provides very capable tax software and has been in business since 1977. All state programs are included, and you can prepare multiple state returns for a single business for no additional charge. While Drake is great software, it is desktop software that doesn’t have advanced integrations. Drake’s attractive price―$1,595 for their unlimited package―makes Drake a good fit for tax firms that prepare a large quantity of individual and business entity tax returns.
 | Pros: | Cons: |
| Prepare any income tax return: Forms 1040, 1120, 1120S, 1065, 1041, and 990 | No integrated tax research service | |
| Visit Drake Software | Pay Per Return package converts to Unlimited after 85 returns | No integrations with popular bookkeeping software |
| All 50 states included | Users report navigation between screens is not intuitive | |
| Drake Tax PricingPay per Return: $330 for 15 returns, plus $22 for additional returnsPrice includes unlimited states per returnConverts to Unlimited plan after 85 returns are purchasedUnlimited: $1,595 for unlimited returns including statesEither package can be hosted on the cloud for an additional fee of $99 per month per user. |
Our Expert Opinion
Drake Tax offers a great value for firms that want the ability to prepare any type of income tax return. It offers most of the same features as more expensive software, including client organizers, a tax planner, MFJ to MFS comparison, and multistate returns. The e-file center works like most professional software packages and includes an option to attach electronic client signatures, so there is no need to print out Form 8879 for your client to sign. Unlike some popular professional software, you cannot purchase Drake Tax bundled with a tax research service. Be sure to factor that into your decision if you’ll be needing access to tax research.
Lacerte: Best Software for Preparing Complicated Tax Returns
Lacerte is Intuit’s high-end tax preparation software to prepare the most complicated tax returns, such as consolidated returns and returns for oil and gas companies. Lacerte can import balances from QuickBooks Desktop and integrates with Intuit Practice Management. Pricing for Lacerte is only available by speaking with a sales representative.
 | Pros: | Cons: |
| Consolidate subsidiary tax returns | No forms based data entry | |
| Visit Lacerte Tax | Complete complex oil and gas returns | No integrated billing clock |
| High-end software that provides a pay-per-return option | No upfront pricing | |
| Lacerte Tax PricingLacerte Tax does not provide pricing information without speaking to a sales representative. The company offers three plans:Lacerte 200 Federal 1040: Provides 200 individual returns for a fixed price and business returns for a pay-per-return feeLacerte Unlimited: Provides unlimited individual and business returns for a fixed priceLacerte REP: Provides pay-per-return pricing for individual and business returns, but also requires an annual license fee |
Our Expert Opinion
Lacerte tax is quality tax preparation software that is right for any size firm that prepares complicated tax returns on a regular basis. Lacerte is expensive, but with complicated returns, you should be able to recoup the cost through client fees. With Lacerte, you can prepare all individual and business returns, including forms 1040, 1120, 1120S, 1065, 1041, and 990. It can also prepare gift and estate tax returns, forms 709 and 706 as well as Form 5500 benefit plan returns. Lacerte includes time-saving features like importing forms from financial institutions, importing capital gain/loss transactions from a spreadsheet, and a QuickBooks Accountant Desktop Integration.
CCH Axcess Tax: Best Cloud-based Software to Manage the Whole Firm
CCH Axcess Tax is one module of the CCH Axcess cloud-based firm management software. It’s good for small to midsized accounting firms that are looking for more than just tax preparation software and prefer cloud-based applications. CCH Axcess Tax integrates with CCH Intelliconnect, a leading tax research service to provide in-program links to relevant tax authority and analysis. You must speak with a sales representative for pricing information.
 | Pros: | Cons: |
| Cloud-based system eliminates IT headaches | No pricing available without speaking to a sales representative | |
| Visit CCH Axcess Tax | In-program links to CCH Intelliconnect research service | Many features require add-ons for an additional cost |
| Integrates with other CCH Axcess modules for cloud-based firm management | Cannot import data from QuickBooks files | |
| CCH Axcess Tax PricingNo pricing or information regarding available packages is available on their website. You’ll need to speak to a sales representative for more information. |
Our Expert Opinion
While it’s disappointing that their website doesn’t provide more feature information, being from CCH and Wolters Kluwer, I have confidence that the program will include all the standard features you need to prepare almost any return. Despite the lack of details, CCH Axcess Tax made our list because of its integration with other CCH Axcess modules for cloud-based management for your entire firm. Another outstanding feature is the ability to link to CCH Intelliconnect without leaving the tax preparation program.
FreshBooks
FreshBooks is an online accounting software application that works well for sole proprietors and freelancers.
The Retainers feature in FreshBooks also makes it ideal for attorneys, accountants, or any professional that charges their clients a retainer fee.
Check out our comparison review of FreshBooks vs. QuickBooks Best for SMBs
Sage 50cloud Accounting
Previously known as Peachtree Software, Sage 50cloud Accounting is a hybrid solution that is installed on-premise, but also includes an option to connect to the application remotely if necessary.
Sage 50cloud Accounting is a good choice for small and growing businesses, with multiple plans available. Sage 50cloud Accounting includes a solid inventory module and offers integration with multiple point-of-sale (POS) applications, which makes it particularly suitable for retailers.
Check out our best accounting systems for small businesses
Conclusion
There are a lot of accountancy software out there. I don’t think it is possible to test them all, unless you have a lot of time and money. However, I advice that you know what works for you.