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The Role of Professional Tax Software in Growing a Tax Preparation Business

As a tax professional, you know that your world is ever changing. In terms of keeping pace and growing your business, you also know that losing billable time with manual processing hardly helps. This is how professional tax preparer software comes in handy. These are basically computer programs that allow you to work with greater efficiency, ease and value for your clients.

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


Most software or applications for tax professionals offer a multiple window feature which enables you to view more than one set of data (Input, Prior Year Input, Forms, 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.

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.
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.

eSignature Convenience

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 to reduce IRS rejections, it is critical that your returns are accurate. 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. Moreover, most of these programs will also let you review a summary o fthe return easily, including forms to be filed, refund, tax, AGI or balance due.

Refund Maximization

Lastly, with tax preparer software, you can go over various tax situations for your clients, save these for later reference, or add or replace 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 we’d all expect, tax preparer software can differ significantly on many points, such as pricing, features, services, etc. Before choosing one, make sure you do your homework. 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.

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