The Role of Professional Tax Software in Growing a Tax Preparation Business
As a tax professional, you know that your world is ever changing. 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 software for tax professionals makes a difference. 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:
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 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.
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 instantly transfer data from the processed source documents straight into the software, greatly reducing the need for data entry.
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 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. On top of that, these programs generally allow you to easily go over the return summary, including forms.
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 expected, tax preparation software for professionals can vary widely on many fronts, from features to pricing to support and more. Before choosing one, make sure you do your homework. And keep in mind that considering a lot of software is better than just focusing on one. When you have options, you have points of reference to decide if a certain solution is indeed the one for you.