Behind the curtain of a firm’s tax filing sit an entire crew of diligent tax auditors, specialized software, accounting files and other tools to efficiently execute tax filing. Dedicated tax software plays a pivotal role in every company’s shoring-up strategy when tax season rolls in. Chances are, you may already be using a handful of these software tools in your yearly tax filings (e.g. ATX, Turbo Tax).
Whether this is your first tax season or your nth, there’s always room for onboarding more tools if the net outcome is a more streamlined tax filing flow. Wouldn’t it be amazing if your taxes basically did themselves, after all?
Of course, there are questions to be asked. Where do you begin looking for the right tax software for your company, and how can you get the most out of it? Netmark has you covered, through this comprehensive article of the 10 best tax preparation software in US (and beyond) for 2023.
Why Tax Preparation Software Matters
Ask the average person about tax preparation software in 2023, and they will happily affirm that these tools are a lifesaver come every tax season. What makes them such a game-changer?
Despite the straightforward name, tax preparation software does a lot more than what it says on the tin. Depending on which software you choose, it can cover an expansive range of tax-related needs. A closer look at the core demography of tax preparation software users, reveals a clear picture of what these tools can and can’t do.
Have you ever felt like you have a general idea of how to go about filing your taxes, but would still appreciate a firm hand on the wheel to keep you on track? If that describes you to, then tax preparation software will go hand-in-glove with your tax needs. By virtue of simplifying tax preparation, this software also unlocks a set of unique advantages, which is why even seasoned taxpayers rely on them every year.
These include:
- Cost savings: For some individuals, it’s simply more cost-effective to go with tax preparation software to get the job done, as opposed to shelling out fees for a tax professional.
- Efficiency: Today, tax preparation software is smarter than ever. It is a step ahead in highlighting potential tax deductions and exemptions, discernible through contextual inputs and questions. They also reduce the possibility of human error in that regard, which is always a welcome bonus!
- Speed: Tax preparation software essentially converts voluminous (and weeks’ worth) paperwork into a streamlined, easy-to-use experience from start to finish. All you need is the required documents and you’re good to go!
However, this isn’t to say that tax preparation software is a magic wand to solve all tax return requirements. If you’re looking out for one, it’s crucial to have the right perspective in terms of what you can get out of it.
Choosing the Right Tax Preparation – Preparation Software
Right off the bat, it’s important to take stock of your tax requirements before browsing options. Paying taxes is a lifelong cycle, so you’ll want a tool you can bank on year after year, as your tax profile evolves. In line with the best tax preparation software in New York City in 2023, we’ve prepared a list of factors to help you zero in on the perfect option for you.
1. Tax filing complexity
If your tax filing is standard and straightforward every year, most tax preparation software can meet your needs just fine. For more complex returns with multiple components, consulting a tax professional is advisable to avoid discrepancies.
2. Intuitive UX
Tax regulations see frequent updates, so it’s vital that you pick an option that has regular software update support. You’ll also want to choose a tax preparation software that grants flexibility, such as including an “import forms” feature for streamlined filing.
3. Live support
Most tax preparation software sites will also have a customer support/live chat option to address any queries and clarifications users may have. This can prove essential during the tax season if you find yourself in a fix on how a particular feature works on the platform. Picking a tax preparation software that can address your concerns in real-time is crucial.
4. Audit & state return features
Though generally viewed as an add-on feature by the niche, audit request features and state return filing are a welcome perk to have in this software. Audit request lets you seek a tax professional’s services through the platform in case you need representation for an IRS audit.
Once you’ve narrowed down the potential use cases and features you desire, you can start browsing the options for tax preparation software. You’ll be faced with a sea of potential solutions, so we’ve narrowed it down to the most viable software in the market. Let’s dive into the comprehensive list of tax preparation software!
List of 9 Tax Preparation Software in 2023
1. ATX
Ideal for both individual and business tax filers, ATX brings a plethora of functionality in an intuitive platform. With inbuilt support for over 6,000 tax forms, ATX is among the most up-to-date tax preparation software systems in the market. ATX also supports third-party file integration systems to port over your forms with ease. First-time filers in particular will find the “Check Returns” feature a lifesaver, as it vets your returns for accuracy prior to filing. The platform also has a “Refund Meter”, which will present an estimate of your potential tax refund after filing. ATX’s basic package is priced at $979* as on . Overall, ATX is a solid option if you’re looking for user-friendly, dynamic tax preparation software in 2023.
ATX Tax Preparation Software Features
- User-friendly interface.
- Extensive library of 6,000+ forms.
- Efficient e-filing capabilities.
- Integration for tax data import.
- Client file sharing options.
2. UltraTax
UltraTax CS by Reuters is a dynamic tax preparation solution that offers widespread tax consolidations at the federal, state, and local levels. There is a significant emphasis on end-to-end automation of tax filing processes across the board, With an intuitive checklist-based system at the helm, UltraTax brings fluid flexibility to the fore, letting users input, view and cross-reference their entries based on previous year forms. If you’re looking for a tool that’ll make your tax filing experience a breeze through automation, UltraTax is as good as they come from tax preparation software in 2023.
UltraTax CS Features
- Streamlines data entry.
- Connects business and personal returns.
- Efficient for multistate returns.
- Pre-submission error diagnostics.
- Adaptable across devices.
- Integrated with full CS suite.
- Supports multiple monitors.
- Paperless operations enabled.
- E-signature and e-filing features.
3. Patriot
Patriot Software includes tax preparation functions as part of its larger suite of payroll services. Its services are naturally geared towards employee management and payroll features. However, the add-on tax filing features are robust across the board, with a provision to cover your company’s tax requirements right down to the quarterly forms. The only drawback here is that this functionality is locked behind Patriot’s Full Service Payroll Subscription, which is a tier higher than their basic plan. Most enterprises will view the $30*/month (+$4 per employee record) price tag as a justified expense for such dynamic tax preparation functionality.
Patriot Software Features
- Easy invoicing system.
- Effective money tracking.
- Cash basis and accrual toggling.
- Automated bank transaction imports.
- Simplified bill payment.
- Comprehensive financial reporting.
- Accurate tax calculations for payroll.
- Free payroll setup.
- Free direct deposit or checks.
- Customizable payroll options.
- Unlimited payroll processing.
- Suitable for W-2 and 1099 employees.
4. ProSeries Professional
Intuit’s ProSeries Professional is a titan in the tax industry and for good reason. Its diverse tax preparation services allow for streamlined processing of almost every type of tax return imaginable, right down to K-1 data transfer. In terms of bang for your buck, this is one of the best overall professional tax preparation software in the market. It offers seamless integration to other popular tools such as QuickBooks. The Pay-per-Return flexible pricing option will prove to be a welcome addition for most enterprises new to the platform. If you’re looking for a reliable and up-to-date tax filing software system, ProSeries Professional is a solid candidate.
Intuit’s ProSeries Professional Features
- Straightforward forms-based input.
- Time-saving design.
- Over 1,000 diagnostics.
- Transparent calculation sources.
5. ProConnect Tax Online
Another comprehensive option from Intuit’s roster, this cloud-based tax professional software is a great value-add for QuickBooks Online ProAdvisors to empower their tax filing processes. ProConnect can generate personalized tax returns based on specific inputs, even going the extra mile to customize them with your firm logos as well! Connecting your bookkeeping infrastructure to the solution is also a breeze, thanks to the inbuilt QuickBooks integration. Verifying your returns with eSignatures is also a valuable addition to ProConnect’s feature suite. All-in-all, this is a winning pick if you want your tax preparation software to be cloud-based, and are a QuickBooks user.
6. Drake Tax
Drake’s Tax Software was voted #1 by the CPA Readers’ Choice Awards in 2022. That reputation is well-founded, thanks to their holistic tax preparation features across the board. If you can think of a quality-of-life addition to tax filing, it’s probably here. Shortcut macros to simplify boilerplate filling? Check. Streamlined backups? Check. Flagging specific form entries for later review? Double check. All this and more at a nominal price makes Drake Tax one of the best professional tax preparation software in 2023, in terms of sheer value. The award doesn’t lie, after all!
Drake’s Tax Software Features
- Speedy tax preparation process.
- Shortcut keys and macros for data entry.
- Automatic data flow to state/city returns.
- Multi-state returns without add-ons.
- LookBack and LinkBacks features.
- DoubleCheck for review flags.
- Update prior-year data easily.
- Client data backups.
- Work with Drake Documents.
- Spanish taxpayer forms.
- Access to online tax research.
- Electronic W-2s import feature.
- Schedule D and 8615 export.
- K-1 export to 1040 returns.
- End-of-year balance import.
- Trial balance import feature.
- Year-to-year tax comparison.
- Joint vs. separate filing analysis.
- Quick Estimator for refunds.
- Amortization schedules tool.
- Calculation results and error messages.
- Organized return viewing options.
- Form and return note screens.
7. Lacerte
This software suite from Intuit is targeted toward the deeper end of the tax return filing pool. Lacerte’s reputation among its users is that of a problem-solver, being able to decode and simplify even the most complex of returns. Consolidation goes cloud-based with Lacerte, with its expansive integration of over 5,700 forms. To top it off, Lacerte also packs in Intuit’s Tax Advisor features to ensure your filing is on the right (and viable) track for your enterprise. For a software of this scope, the minimal reliance on IT support for day-to-day operations is quite the boon. Lacerte is the way to go if you’re looking for a tool that can balance complexity with tax-filing convenience.
Lacerte Features
- Access over 5,700 forms.
- 25,000 error-spotting diagnostics.
- 32 time-saving features.
- Automatic updates and backups.
- Data encryption for client safety.
- Enterprise firewall protection.
8. CCH Axcess Tax
Flexibility in tax infrastructure is a big draw for any firm when tax season rolls in CCH Axcess Tax’s USP is driving reliable innovation in tax preparation services. This makes it one of the best cloud-based software to manage the whole firm’s tax needs. The emphasis on scalability makes it accessible even to small firms with basic tax needs. With a comprehensive suite of automated form-related features for complete ease-of-use, CCH Axcess Tax bridges the gap for companies seeking powerful yet accessible cloud-based tax preparation software in 2023.
CCH Axcess Tax Features
- Comprehensive forms and calculations.
- Innovative technology integration.
- Flexible for any size firm.
- High-quality, accurate returns.
- Onscreen review tools.
- Powerful diagnostics for e-file.
- Time-saving digital workflows.
- Automated tax process tasks.
- Convenient e-signature collection.
- Flexible and familiar interface.
- View multiple worksheets/forms.
- Navigation history recording.
9. UltraTax CS
This tax preparation software’s core functionality is stretched across a three-part cycle: streamlined data input, advanced return support, and optimized business flow. UltraTax takes form screening a notch higher than most other offerings, with its unique pre-submission, dynamic, diagnostic spotting discrepancies in your return filings. This software also supports a vast range of integrations in its platform, spanning Planner CS and Accounting CS. The interface is intuitive, allowing easy access to previous tax returns and files. eSignatures are also included, to reduce the hassle of return verification. The UltraTax CS software has chalked up quite the reputation for itself across all tax strata nationwide, so it’s an ideal pick for an all-around tax preparation software in 2023.
UltraTax CS Features
- Full line of tax programs.
- Streamlined data entry.
- Optimizes business operations.
- Links business and personal returns.
- Data sharing across CS suite.
- Email missing data to clients.
- Prepares multistate returns easily.
- Automatic allocation worksheets.
- Pre-submission dynamic diagnostics.
- Adapts across workspaces/devices.
- Integrated, full CS suite.
- Supports multiple monitors.
- Fully paperless operations.
- E-signature and e-filing capabilities.
Conclusion
Scoping out tax preparation software in 2023’s tax season can seem daunting at the onset. There is a truckload of parameters and factors to consider before subscribing to any software, especially over long-term commitments. Even the most basic tax return show some degree of variation with each passing year, so it’s crucial to take adaptability into account when picking the right option for your firm. Evaluate your tax filing needs and set clear terms on how the tax preparation software will fit into your ecosystem before committing to an option. Don’t forget to keep the future in mind when selecting, because as they say, tax is a constant in life!
FAQs
1. What is tax preparation software?
In a nutshell, tax preparation software is a program that assists individuals and companies with the tax filing process. Its core purpose is to bridge the knowledge gap of people filing their taxes, and make the process more accessible through intuitive features such as question-based form filling.
2. How do I choose the best tax preparation software for my needs?
To choose the best tax preparation software, you must consider three primary factors:
- Tax filing requirements and needs coverage
- Ease of use & accessibility
- Third-party integration support for smoother onboarding
3. Is tax preparation software easy to use?
All tax preparation software focus on creating a streamlined, user-friendly tax filing experience for the user. They simplify tax filing by making its various components more accessible to the user, with an emphasis on convenience for newcomers and veterans alike.
4. Can tax preparation software help me maximize my tax refund?
Some of the more advanced tax preparation software do offer this feature. However, it is advisable to consult with a tax professional to get a clear idea of how much tax refund you can get, taking contextual factors into account.
5. Is tax preparation software secure and safe to use for filing my taxes?
Tax preparation software in 2023 comes fitted with the latest security features and regulatory compliance. This guarantees end-to-end security for all your tax particulars and documents.
