The Key Elements of Great Resources

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. Basically, these are computer programs that let you work more easily and efficiently, and with greater value for your clients.

Here are the main benefits of using software for tax preparers:

Flexibility

Most tax preparer software come with a multiple monitor feature that allows you to view several windows – for example, Input, Prior Year Input, etc. – in one screen. Forms will as well be synchronized with one another, so if you were to go to your Itemized Deduction entry for example, you will automatically be able to view Schedule A and the past year’s Itemized Deductions entries.

Straightforward Labeling and Quick Data Extraction

With good professional tax software, you can label and organize your clients’ source documents automatically, making it easy for you to find and identify your electronic files.
You can also move data from the processed source documents directly into the software, reducing data entry considerably.

Convenience of eSignature

Professional tax preparation software usually comes with eSignature, allowing you to save money and time, as well as avoid IRS hassles and more. You and your clients can take advantage of this secure, convenient and efficient way of signing tax documents through digital technology.

Quick and Easy 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. Additionally, these programs usually let you go through a summary of the return easily, including forms for filing, tax refund, balance due, and AGI.

Refund Maximization

Finally, by using tax preparer software, you will be able to review different tax scenarios for your clients, save these scenarios for future reference, or add or replace data in the current return. Efficiency is important to the tax preparation business – it retains old clients and brings in new ones.

As you might expect, professional tax software can vary widely on many aspects, from features to pricing to customer service and more. Before you choose one, do your research. And remember that it’s best to consider more than one prospective software. When you have options, you have points of reference to decide if a certain solution is indeed the one for you.