Entigrity

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.

  1. 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.  

  1. 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:  

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.

Features

Pros

Cons

Tax analysis

It helps save time

Doesn’t support Form 16.

Trial balance

It offers safe access and filing of returns

Lacks auto-save feature to save made changes

Tax planning

The software ensures 99.9% SLA. 

Filters are not using friendly

Tax errors detection

It offers comprehensive tax filing solutions

Tax summaries need to be improved
 

 

2. InTuit ProConnect :

InTuit ProConnect

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.

Features

Pros

Cons

Data import and export

Offers unlimited access to unlimited users

Requires hours to resolve issues

Workflow Automation

Ensures reliable data encryption

Doesn’t provide access to some forms

Document Management

Can be integrated to tools like Google Drive

Inadequate customer support

Automated Data Entry Process

It is easy to navigate

Users cannot interact with developers

 

3. ProSeries:

ProSeries

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.     

Features

Pros

Cons

Refund management

Paperfree processing

High price

E-signature

Ensures precise tax preparation through automation

The auto renewal feature cannot be shut off

Invoicing and billing

Offers hassle-free access to multiple users.   

W-2 forms are missing

Assessment 

Multiple calculations are automated to minimize errors.

Not enough marksheets to show calculations

 

4. Drake Software:

Drake Tax

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.

Features

Pros

Cons

Tax Planner  

Provides excellent security

High cost of cloud hosting services

Tax Comparison

Highly reliable collaboration features    

Not suitable for use in filing for different states

Backup and Restore

Easy error detection and diagnosis 

High price for cloud based hosting

E-Signature

Customer authorization is simplified 

The software isn’t designed for inexperienced tax preparers

 

 5. TaxSlayer:

TaxSlayer

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. 

Features

Pros

Cons

Filing can be done on the move using the free app

Guarantee of maximum refund

Expert help available only on high-cost packages

No out of pocket fees

For any penalties or interest charges, TaxSlayer guarantees a full reimbursement with 100% accuracy.

No option for a tax expert to review or prepare your tax return

Easy to use interface

Cheaper plans

You cannot upload or import files in the free version

The Classic, Premium, and Self-Employed tiers enable users to compare their present tax information with that of previous years.

IRS inquiry and audit support guarantee on select plans

Lacks synchronization with banks and brokerage accounts

 

6. H & R Block:

H & R Block

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.

Features

Pros

Cons

Free Online plan is ideal for W-2 employees and students

Audit support guarantee if you get a notice from IRS

To contact a live expert, you need a paid plan

Deductions are itemized with Schedule A

100% accuracy, or H&R Block will reimburse for any penalties or interest up to $10,000

High cost

Data can be easily imported from Turbo Tax® and Quicken® software

Unlimited on-demand chat or video support with Online Assist plans

Only 5 returns can be filed per computer

Accuracy Review'" checks for issues and performs assessment of audit risks

Easy to follow step by step guidance

Certain aspects of trust return preparation, such as the allocation of tax-exempt interest to expenses, may pose challenges and be a source of confusion

 

7. Turbotax: 

Turbotax

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

Features

Pros

Cons

If you possess a W-2, eligible dependents, or student loan interest for deduction, you may qualify for free federal and state tax filing

On demand advice and a final review from tax expert available

Costly as compared to other software programs

More than 350 tax deductions and credits are reviewed to help you get the largest tax refund

Free audit support if you get IRS ort similar notice

Additional costs for live expert assistance plans

Utilize the ItsDeductible™ app to determine the value of donated items, ensuring a precise understanding of eligible contributions for tax deductions.

Live Full Service has a tax expert to prepare, sign, and file your returns

Only simple tax returns qualify for the free edition

The ExpenseFinder automatically collects and scans your bank and credit card transactions, aiding in the identification of business-related purchases.

Easy to follow step by step guidance in Q and A format

Processing state tax returns usually costs extra

 

8. QuickBooks:Β 

QuickBooks

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.

Features

Pros

Cons

QuickBooks has a useful platform named LiveFlow which helps create connection between your QuickBooks data and customized reports and dashboards in Google Sheets

The software is user-friendly

Lack of key reports  other than accounting

The QuickBooks Enterprise bundle of the bookkeeping software comes with native integrations which can help your business

Can be easily accessed from any device

Lack of invoice design tools

Ability to process live files

Easy to track and resolve errors

Data back-up is not always available

Increased user capacity

Offers insightful accounting reports

Built specifically for small businesses

 

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.

  1. 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.

  1. 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 catering to over 725 accountants, CPAs, and tax firms in the US and Canada. Through a transparent and adaptable hiring approach, the company enables firms of varying sizes to secure proficient accounting, bookkeeping, and tax preparation staff. Being a company "run by accountants, for the accountants," Entigrity ensures precise alignment with the hiring requirements of accounting firms, offering staff under your supervision to alleviate concerns related to compliance, payroll taxes, overheads, and benefits. Proudly an independent member of the BDO Alliance USA, Entigrity has collaborated with IMA to train and enhance the skills of 5,000 professionals in India. Recognized as one of the "Dream Companies to Work For," it has earned the "Great Place to Work® Certified™" accolade in the accounting offshoring industry.

Jacob Scott, CPA
Member, Advisory Board

Jacob Scott is a CPA with over 20 years of experience in the area of accounting & finance and has worked as a Senior Audit Associate at EY. Jacob drives the financial planning of the company by analyzing its performance and risks. He retains constant awareness of the company’s financial position and acts to prevent problems. He also sets up and oversees the company’s finance IT system as well as sets targets for and supervise all accounting and finance personnel (management accountants, internal auditors, etc.) Besides overseeing all audit and internal control operations, Jacob develops the corporate fundraising strategy and manage relationships with partners and investors. His roles also include preparing timely and detailed reports on financial performance on a quarterly and annual basis and conducting analysis to make forecasts and report to upper executives. He ensures adherence to financial laws and guidelines.Β  He has a keen interest in activities and societies, industry tours, educational seminars, cultural activities, sports, and most importantly attending conferences.

Recent Post

Build an Accounting Firm Gives More Money Time Freedom

Build an Accounting Firm Gives More Money Time Freedom

Christopher Rivera, 242

10 Oct, 2023 242
CPA Evolution - Insight into the Profession as an Accountant

CPA Evolution - Insight into the Profession as an Accountant

Christopher Rivera, 253

27 Sep, 2023 253
How the Accounting Industry is Transforming Itself

How the Accounting Industry is Transforming Itself

Christopher Rivera, 250

10 Sep, 2023 250
SOMERSET CPAS

SOMERSET CPAS

Jacob Scott, CPA, 781

08 Aug, 2023 781
SUMMIT CPA

SUMMIT CPA

Mike Goossen, CPA, 723

08 Aug, 2023 723
ACKTIFY CASE STUDY

ACKTIFY CASE STUDY

Christopher Rivera, 694

08 Aug, 2023 694
Client Updates - August 2023

Client Updates - August 2023

Christopher Rivera, 647

01 Aug, 2023 647
Client Updates - July 2023

Client Updates - July 2023

Christopher Rivera, 731

01 Jul, 2023 731
Client Updates - June 2023

Client Updates - June 2023

Christopher Rivera, 932

01 Jun, 2023 932
CPA Vs Ron Smith Season 2 Episode 5

CPA Vs Ron Smith Season 2 Episode 5

SIA KAL, 831

20 Feb, 2023 831
CPA vs Ron Smith Season 2 Episode 4

CPA vs Ron Smith Season 2 Episode 4

Jack Anderson, 2535

13 Feb, 2023 2535
CPA vs Ron Smith Season 2 Episode 3

CPA vs Ron Smith Season 2 Episode 3

SIA KAL, 1032

12 Dec, 2022 1032
12 PRACTICAL TIPS TO BUILD AND MANAGE OFFSHORE TEAMS FOR ACCOUNTING FIRMS

12 PRACTICAL TIPS TO BUILD AND MANAGE OFFSHORE TEAMS FOR ACCOUNTING FIRMS

Mike Goossen, CPA|Shawn Parikh, 2626

06 Apr, 2021 2626
8 ACTIONABLE RECOMMENDATION ON INTEGRATING ONSHORE & OFFSHORE STAFF AND BUILD ONE TEAM

8 ACTIONABLE RECOMMENDATION ON INTEGRATING ONSHORE & OFFSHORE STAFF AND BUILD ONE TEAM

Shawn Parikh, 2667

06 Apr, 2021 2667
GUIDE TO START CLIENT ACCOUNTING SERVICES

GUIDE TO START CLIENT ACCOUNTING SERVICES

Mike Goossen, CPA, 3209

12 Jan, 2021 3209
BOOKKEEPING SYSTEMS TO HELP BRIDGE THE GAP WITH USING OFFSHORE STAFF

BOOKKEEPING SYSTEMS TO HELP BRIDGE THE GAP WITH USING OFFSHORE STAFF

Leena Parikh, CA, 10029

02 Mar, 2022 10029
HOW TO RAISE RATES WITHOUT LOSING A CLIENT

HOW TO RAISE RATES WITHOUT LOSING A CLIENT

Mike Goossen, CPA, 10212

14 Feb, 2022 10212
WHY PERSONALITY MATTERS SO MUCH FOR ACCOUNTANTS TODAY

WHY PERSONALITY MATTERS SO MUCH FOR ACCOUNTANTS TODAY

Christopher Rivera, 10086

08 Feb, 2022 10086
Team Updates - Oct.

Team Updates - Oct.

Shawn Parikh, 2317

20 Oct, 2022 2317
16th September 2022

16th September 2022

Shawn Parikh, 2863

16 Sep, 2022 2863
Roles Restructuring and Other Updates

Roles Restructuring and Other Updates

Shawn Parikh, 2357

05 Sep, 2022 2357
Entigrity Proudly Sponsors SYNERGY 2023

Entigrity Proudly Sponsors SYNERGY 2023

Christopher Rivera, 138

03 Nov, 2023 138
Entigrity Shines at SurePrep Transform 2023: Leading the Way in Offshore Staffing Solutions

Entigrity Shines at SurePrep Transform 2023: Leading the Way in Offshore Staffing Solutions

Christopher Rivera, 190

26 Oct, 2023 190
Entigrity a Proud Sponsor at SurePrep Transform Conference 2023

Entigrity a Proud Sponsor at SurePrep Transform Conference 2023

Christopher Rivera, 179

11 Oct, 2023 179
SAY NO TO STAFFING STRESS THIS TAX SEASON

SAY NO TO STAFFING STRESS THIS TAX SEASON

Mike Goossen, CPA, 4748

01 May, 2020 4748
OFFSHORE STAFFING VS OUTSOURCING - WHAT TO CHOOSE

OFFSHORE STAFFING VS OUTSOURCING - WHAT TO CHOOSE

Mike Goossen, CPA, 4300

06 Apr, 2020 4300
OFFSHORE STAFF IS SIMILAR TO LOCAL STAFF

OFFSHORE STAFF IS SIMILAR TO LOCAL STAFF

Mike Goossen, CPA, 3911

01 Apr, 2020 3911