The best tax software for tax professionals is necessary not only to ensure accurate tax filing, but also to handle any changes in the complicated US tax rules and regulations. Federal taxes, state taxes that vary from one state to another, and local taxes mean that you have to invest time and effort into finding the best accountants software.
At some point in life, you will have to deal with your taxes, whether it’s you or your business. So what is the best way to do so? Should it be a paper system or online solutions? And lastly, which software would offer the most comprehensive solution? These questions are what we’re here to answer today. Let’s start by taking a look at why tax software is the right choice for you.
ProSeries Professional
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 $566 per year plus $90 per return, including charges for both federal and state returns.
Pros
- Offers multiple packages to fit your needs
- Choose to enter data through forms or quick-entry sheets
- Integrated billing clock
Cons
- Pay-per-return pricing charges extra for a state return
- No upfront pricing for some plans
- Multiuser access is an additional fee for most plans
ProSeries Professional Pricing
- Pay per Return: $566 per year doesn’t include any returns
- Each individual return (federal plus one state) is $90
- Each business return (federal plus one state) is $118
- Choice 200: Custom pricing
- Includes any combination of 200 individual and business returns
- Additional returns can be purchased for the pay per return rates
- 1040 Complete: $2,732 per year includes unlimited federal and state individual tax returns
- Business returns can be added for the pay per return rates
- Power Tax Library: Custom pricing
- Includes unlimited federal and state individual and business returns
Features
ProSeries Professional provides several tools that will suit the needs of small to mid-sized businesses. With the exception of form 5500 returns, the software offers a variety of packages and access to a variety of helpful resources, including tax planning suggestions:
- Client tools: ProSeries Professional offers a variety of resources for your clients, including the ability to create checklists for the items clients need for each year’s tax return. Client-specific billing and editable invoice options are available as well, including flat rates, hourly fees, and charges per form.
- Electronic filing: You’re able to view, track the status of, and manage your clients’ e-filed returns. Missing client data is also filed and tracked, and data must be entered before the return is sent.
- Hosting and integration: The ProSeries software can be accessed anywhere on any device, and information is stored in the cloud, allowing for flexible workflow. ProSeries also allows for simple importing of financial data from QuickBooks and TXT.
- Tax planning: ProSeries Professional will generate a list of up to 73 tax planning suggestions that will assist your clients with lowering future taxes. The tax planner estimates income, expenses, withholdings, and tax payments for future tax years.
- Input guidance and forms: K-1 data imports transfer data to individual returns automatically. The Intuit link portal allows clients to upload their documents in a timely and organized manner.
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 from modern tax software, like e-file management, downloading tax forms from financial institutions, and K-1 data transfers between returns.
Because most ProSeries Professional plans charge an additional fee for multiuser access, it’s not ideal for firms that have more than one accountant managing their accounts. Also, ProSeries Professional cannot handle more complex returns, such as consolidated returns and oil and gas returns. For firms with more complex returns, Lacerte would be a better choice, as it can prepare even the most complicated tax returns.
ProConnect Tax Online
If you’re 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
- Cloud-based system eliminates information technology (IT) headaches
- Manage tax returns from your QuickBooks Online dashboard
- No annual license fee
Cons
- Pay-per-return pricing is expensive for high-volume preparers
- No options for unlimited returns
- Cannot customize client letters and invoices
PricingProConnect Tax Pricing
All 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 $47.95 for each return over 200.
Features
Any firm that specializes in QuickBooks Online should give serious consideration to ProConnect Tax, as it provides powerful features such as missing data review and document management. ProConnect Tax also has a K-1 package and a tax planner with the ability to project multiple case scenarios:
- Document management: ProConnect Tax allows you to upload documents, store them, and view them as you do the return, with the option to download forms if desired. You can also customize your requests for tax information, based on the previous year’s information.
- Tax planner: You can plan ahead with your 1040 and Schedule C clients by playing around with comparative tax scenarios. These scenarios include making multiyear comparisons for up to three years and building multiple case scenarios. You can also calculate tax liability and import diagnostics.
- K-1 package: Partnerships, S corporations (S-corps), and fiduciaries can produce letters, K-1 forms, K-1 state forms, and other applicable forms for each individual partner or shareholder.
- E-filing: View the e-file status of all of your clients with a dashboard that allows you to sort, filter, and check for rejections. You can also offer e-signature, which lets your clients review and sign forms from anywhere, on any device.
- Missing data review: ProConnect Tax will flag missing data fields so that you can identify any gaps prior to filing. This streamlines the process of identifying any errors, which will create a faster review time.
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.
For high-volume preparers, TaxAct Professional might be a better choice. With the low price of $725 for unlimited individual and $1,325 for unlimited individual and business returns, it also allows for unlimited e-filing. It’s an affordable but powerful solution that’s ideal for users that need to prepare a large number of individual and business returns each year.
Credit Karma
Why We Chose It
We chose Credit Karma tax because it’s completely free to use for any supported tax situation.
Pros & Cons Pros
- Free filing for all tax returns
- Imports from other tax software
- Free audit defense support
Cons
- Doesn’t support all forms
- No multi-state filing
- No phone support
Overview
Like its competitors, Credit Karma lets users import a previous return from other software and a photo of a W-2 and then walks them through the rest of the process using a series of questions and prompts.
Credit Karma claims to offer more filing options than its competitors’ free versions, including filing for mortgage interest, property tax, and student loan interest deductions. The software doesn’t support every type of form, however. Individuals filing in multiple states or who receive funds from a trust or estate need to look elsewhere.
As a free service, Credit Karma offers no phone support. It does, however, include audit defense for its customers which includes consultation from a representative in the event of an IRS audit who will also attend a hearing on their behalf. Users also get accurate calculations and max refund guarantees with reimbursements up to $1,000 in IRS or state tax penalties and up to $100 if another provider shows a larger refund.
eFile
A zesty no-frills business tax solution
Another option if you’re looking for a simple-but-effective means to tackle your tax is eFile. This online-only option currently comes in three different packages, with a Free Basic being only suitable for standard W-2 income affairs. However, eFile is pretty useful if you’re a self-employed business person.
While eFile isn’t really aimed at, or indeed geared up for larger businesses due to its inability to let you file the corporations Form 1120 using the service, it is also useful for SMBs. Indeed, for businesses there’s the Premium edition, which delivers a speedy calculator-style system that issues useful estimates, plus a support agent to help you through the process.
Going down the eFile route means you’ll probably want to bypass the Deluxe edition and go for that Premium model in order to enjoy all of the benefits of a small business targeted filing system. While eFile has a slightly more light-hearted feel to its approach, generally speaking this is a solid and reasonably-priced option.
Conclusion:
When you’re a small business owner or tax professional, an accounting software can be essential to your workflow. It all depends on which kind of work you do and what benefits you’re looking for in your invoicing software, payment processing software, or general practice management software.