The Role of Professional Tax Software in Growing a Tax Preparation Business
If you’re a tax professional, you know how dynamic your world can be. 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 where tax software for professionals comes in. These are essentially computer programs created to make your work more efficient and add value for your clients.
Below are some of the key advantages of using tax preparer software for professionals:
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 also usually come synced with one another, so if you were navigating to your Itemized Deduction entry, the software will automatically show you Schedule A and Itemized Deductions entries in the past year.
Simplified Organization and Fast Data Extraction
Good tax preparer software comes with a feature that lets you automatically label and organize the source documents of your clients, which means you’ll find it much easier to find and identify them in your e-files.
Also, you will be able to automatically pull out data from the processed source documents to be directly moved into client ta returns in the software, thereby drastically reducing data entry.
Convenience of eSignature
Professional tax software generally comes with eSignature, which allows you to save time and cash, avoid IRS issues and more. You and your clients can simply enjoy a secure, efficient and highly convenient way of signing tax documents digitally.
Quick and Easy Error Correction
We all know that accuracy of returns is crucial to reducing IRS rejections. Using good professional tax software, you can easily find possible inconsistencies in tax information, check your returns with a list of overriden entries, and find e-filing errors with a direct link to the specific erroneous form. On top of that, these programs generally allow you to easily go over the return summary, including forms.
Lastly, if you pick the right tax preparer software, you can have a feature that lets you check out a myriad of tax scenarios for your clients and then save them for reference in the future, add new data or replace existing data in the current return. Efficiency is vital to the tax preparation business – it not only retains old customers but it attracts new ones too.
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, it’s better to consider several products instead of just one. With options, you have points of reference to decide if a particular solution is indeed the one you need.