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. 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.
The following are the biggest benefits you get from professional tax software for 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 as well be synchronized with one another, so if you were to go to your Itemized Deduction entry for example, you will automatically be able to view Schedule A and the past year’s Itemized Deductions entries.
Simplified Labeling and Speedy 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.
You can also move data from the processed source documents directly into the software, reducing data entry considerably.
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. On top of that, these programs generally allow you to easily go over the return summary, including forms.
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 important to the tax preparation business – it retains old clients and brings in new ones.
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. When you have options, you have points of reference to decide if a certain solution is indeed the one for you.