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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. These are essentially computer programs created to make your work more efficient and add 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 also usually be synced with one another, so if you want to, say, view Itemized Deduction, you will also be automatically shown Schedule A and last year’s Itemized Deductions.

Simplified Organization and Fast Data Extraction

Good professional tax software come with a feature that allows you to automatically label and organize your clients’ source documents, which means locating and identifying them in your electronic files will be easier.
You can also move data from the processed source documents directly into the software, reducing data entry considerably.

ESignature Convenience

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 simply enjoy a secure, efficient and highly convenient way of signing tax documents digitally.

Quick and Trouble-free Error Correction

We all know that to reduce IRS rejections, it is critical that your returns are accurate. 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. 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

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 important for any tax preparation professional as it not only retains old clients but also keeps new ones coming.

As you might expect, professional tax software can vary widely on many aspects, from features to pricing to customer service and more. Before choosing one, make sure you do your homework. And remember that it’s best to consider more than one prospective software. If you have options, you have points of reference that can help you decide whether a specific solution is indeed the one you’re looking for.