Top Tax Preparation Software for CPA's and Accounting Firms in 2024

Taxation forms an integral part of any firm's accounting process. It requires timely maintenance of records to ensure that you get the necessary details without going deep into details. Tax software generates and stores documents in folders that can be easily accessed so that you can access all details effortlessly.

In this blog, our emphasis is on highlighting leading tax preparation software choices that hold significant market share, including TaxSlayer, QuickBooks, and Intuit ProConnect.

Why CPA Firms Use Tax Preparation Software?

Taxes and technology have been evolving with time. CPA firms often need help to stay updated with changes in tax laws. Almost all CPA firms make use of the best tax preparation software to make work easier. You can save time and money with quick and easy data entry and retrieval. There will be fewer errors since many operations (like tax return filing) will be automated, and you will be updated at the right time.

There will be less duplication as a single data set will be used to collect and analyze data to make wise decisions. Digital record-keeping and accounting project management software also simplifies the submission of online tax returns. 

Essential Features To Look For In Taxation Software

Numerous CPA tax preparation tools are widely used to perform taxation-related tasks perfectly. However, it is essential to use software with features that suit the needs of your taxation process perfectly. If you own a CPA firm that offers outsourced tax preparation services, then the best tax preparation software should have the following features-

1. Hassle-Free Data Entry and Integration:

CPA and accounting firms handle massive volumes of data entry while performing tax preparation jobs. These firms manage various bills, cash memos, and invoices for each client. This time-consuming job can be automated using the best tax software. Data entry automation ensures accurate data entries. 

The best tax software for CPA firms are highly flexible and offers smooth third-party integration. So, the data management process is more streamlined as the data gets stored in the tax preparation software.

2. Inclusive Compliance and Reporting

A CPA firm is responsible for preparing and filing taxes and ensuring that they comply with existing norms and generate thorough reports. A CPA tax preparation software can be used to automate this task. These tools help accountants generate various reports that offer helpful information to clients.  

3. Enhanced Collaboration and Management

The best tax software for small accounting firms offers workflow automation and simplified collaboration options as a part of their features. This simplifies the report-making process and facilitates the smooth data exchange between a firm and a client. The presence of multiple management tools in a single platform fosters good collaboration.

Leading Taxation Software For CPA Firms In The US

With close to a decade’s experience in catering to over 725 clients across North America and the UK, we at Entigrity have ample knowledge of the latest tax preparation software available in the market. Here, we share a list of some of the best small business tax software along with their features, pros, and cons. 

1. Intuit Lacerte:  

This tax software includes over 5,700 forms. It supports multi-state, K-1s, and more. Its tax form modules include- 1040, 1041, 1065, 1120, 1120S, 706, 709, 990, and 5500.

ProConnect Tax is an online tool designed to simplify and automate tax processes by offering various features. These include a books-to-tax feature with seamless integration from QuickBooks Online, a secure client portal for document uploads, an e-filing dashboard, reports for tax returns, and project management tools. It can automatically import client data from different tax forms.

ProSeries Tax stands out as user-friendly professional tax software designed to expedite and enhance the accuracy of tax return processes. With its robust features, including comprehensive diagnostics that swiftly identify errors and provide guidance on corrections, the software is equipped with 27 time-saving tools. Its transparent workflows ensure a seamless experience, and integrated options such as cloud hosting and electronic signature tools further contribute to its efficiency.     

Drake software offers a convenient solution to replace the traditional method of manually signing or stamping tax forms. The e-signature feature proves beneficial for both taxpayers and preparers, allowing them to electronically sign documents such as 8879 consent forms and bank applications for e-filing tax returns through the use of a digital signature pad.

TaxSlayer has been specifically designed to simplify the tax filing process and ensure that individuals can easily complete and submit their returns to the IRS, no matter how complex their financial situation is. With four different filing options available, you can select the one which suits your needs perfectly. 

Tailored for small businesses, this tax practice management solution offers assistance in optimizing tax benefits, as well as providing guidance on mortgage interest and real estate tax deductions.

Turbotax is a configurable software solution that helps users to manage all tax compliance requirements to pay taxes and file returns on time.

Unlike other types of taxation software, QuickBooks enables you to track inventory, generate invoices, and run reports. Therefore, it is widely used by CPAs in order to track their finance.

 

Conclusion

Using the best tax software for small CPA firm is essential to ensure hassle-free operation and accuracy in an accounting process. Use of the right software helps to automate various workflows, manage multiple clients and minimize time-consuming jobs. Such tools are also equipped with effective collaboration features.  Therefore, CPA firms can collaborate with remote teams and clients. Data can be shared digitally and CPAs can process data to prepare taxes perfectly.

The costs associated with hiring an onshore team with sound knowledge of taxation software is considerably high. Depending on the tax preparation software for CPA  you opt for, you can access features like direct import of tax forms, expert tax help, and tax deduction locators. Hiring an onshore team with the know-how of such software is quite expensive. It is here that offshore accounting partners like Entigrity come in to offer quality service without charging extra for overtime. We have a dedicated L & D team that keeps our accountants updated about the changing regulations and industrial developments. Established in 2015, Entigrity has ample experience and know-how to meet the offshore needs of small and medium-sized CPA firms. We firmly adhere to the data and information security policies certified by ISO 27001 standards. Our physical infrastructure is designed to facilitate smooth workflow while upholding the highest levels of security. Entigrity excels with 3000+ accountants skilled in QuickBooks, H&R Block, and more relevant tax software.

FAQs

1. Why do CPA firms use tax preparation software?

Ans: CPA firms utilize tax preparation software to streamline data entry, enhance compliance and reporting, facilitate collaboration, and ensure accurate and efficient tax processes. These tools automate tasks, reduce errors, and provide essential features like data integration and workflow automation, ultimately saving time and improving overall efficiency in tax preparation.

2. What are some leading tax preparation software options for CPA firms in 2024?

Ans: In 2024, top tax preparation software choices for CPA firms include Intuit Lacerte, InTuit ProConnect, ProSeries, Drake Tax, TaxSlayer, H&R Block, TurboTax, and QuickBooks. These platforms offer various features like comprehensive tax forms, workflow automation, and precise tax preparation to meet the diverse needs of CPA firms.

3. How does offshore accounting partner Entigrity support CPA firms in tax preparation?

Ans: Entigrity, a reliable offshore staffing partner, supports CPA firms by providing skilled accountants proficient in popular tax software like QuickBooks and H&R Block. With transparent hiring processes, Entigrity offers cost-effective solutions, ensuring compliance, data security, and up-to-date knowledge of changing regulations for small and medium-sized CPA firms.

 

Entigrity™ is a reliable offshore staffing partner for 850+ accounting and CPA firms, 200+ CFOs & businesses across the US, Canada, and the UK. With a flexible and transparent model, the company enables firms of all sizes to acquire skilled accounting, bookkeeping, and tax preparation staff. As a pioneer in offshore accounting, Entigrity ensures precise alignment with the hiring needs of accounting firms, providing staff under your control and management and minimizing concerns about compliance, payroll taxes, overheads, or benefits. Trusted by 45+ of the top 200 US accounting firms, we specialize in supplying highly skilled personnel from India. We have 39 global offices across India. We are GDPR compliant, ISO 27001:2013, and SOC 2 Type II certified. We are now "Great Place to Work Certified™," "KPO Organization of the Year," and "Dream Companies to Work For" among accounting industries. Entigrity is also recognized as a platinum partner by the Institute of Management Accountants (IMA). The company is strategically partnered with Boomer, a BDO Alliance USA and Abacus Alliance member.