The Best Tax Software For Tax Preparers - 2023 Picks

Developed by Intuit, ProSeries is a comprehensive but reasonably priced tax software for tax professionals. Best-suited for small to medium-sized accounting companies, this downloadable solution is popular among users who prefer a form-based interface and already use QuickBooks Desktop – the provider’s accounting program. According to the ProSeries website, more than 58,000 accounting professionals have been using this Intuit solution year after year.

Pricing and Features

There are two ProSeries plans to choose from – Basic, designed for users who limit their preparation to 1040 forms, and Professional, created for accounting firms handling both personal and business returns. Both tax prep software plans are tiered, highly customizable, and can only be purchased on an annual subscription basis.

The ProSeries Basic plan is an excellent choice for those just starting out with 1040 returns and their accompanying Schedules. If you opt for this solution, you’ll be presented with a choice of three entry-level software packages. Each plan comes with a set number of federal 1040 returns and state returns that you can file. However, should you need to file returns outside of those for individual income, each additional item will be charged according to the provider’s rates.

The ProSeries Basic tax software for tax preparers also includes free e-filing, product guidance for new users, the ability to download your clients’ financial data directly from their respective financial institutions, a client portal, tax planner, electronic 8879 signatures (for an additional fee), client letters, and client invoices. The ProSeries Basic pricing structure works as follows:

– ProSeries Basic 20: Priced at $420 for the first year and $785 thereafter, the Basic 20 comes with 20 federal 1040 returns and 20 individual state returns (in one state). 

– ProSeries Basic 50: The first year of using the second-tier of this tax preparation software will set you back $740, rising to an annual cost of $1,141 after that. The plan includes 50 federal 1040 returns and 50 individual state returns (in two states).

– ProSeries Basic Unlimited: The third tier comes with unlimited federal 1040 returns and unlimited individual state returns (in four states). If you opt for this solution, you’ll face an annual fee of $1,170 in the first year and $1,726 after that.

Suppose you’re on the hunt for the best software for professional tax preparers because you need help handling your clients’ individual and business returns. In that case, we suggest you look into Intuit’s ProSeries Professional. This expert-level solution comes with four packages to choose between.

The features contained within the Professional packages match the capabilities offered with the three ProSeries Basic solutions but also include additional 1040 support, multi-user access (additional fees apply with some packages), cloud hosting (additional fees apply with all packages), and K-1 import, along with client checklists, presentations, and tax planning suggestions. Here’s an overview of the ProSeries Professional tax preparation business software and the specific features each package entails:

– ProSeries Pay-Per-Return: As the name suggests, the Pay-Per-Return license means you’ll be working on a pay-as-you-go pricing basis for individual 1040 and business returns in all states. This license will cost you $300 for the first year and $539 in the following years. Note that you’ll face additional costs for each state and federal tax return that you file.

– ProSeries Choice 200: Those who prepare up to 200 returns for a wide variety of clients will probably consider this the best tax preparation software for professionals. The Choice 200 package supports 1040 returns, individual returns for all states, state business returns (1120, 1120S, 1041, 1065, and 990), federal business returns (1120, 1120S, 1041, 1065, and 990), and estate and gift returns (709 and 706). To find out how much this software solution will cost you, you’ll need to get in touch with the provider.

– ProSeries 1040 Complete: Priced at $1,950 for the first year and $2,602 annually after that, this tier of the ProSeries Professional tax software offers unlimited federal 1040 and state returns (excluding 1040 NR, priced at $45 per return). On the other hand, you’ll be charged the pay-as-you-go rate for each filed business return.

– ProSeries Power Tax Library: This is the most comprehensive ProSeries Professional package. It lets you file 1040 returns (more than 100 federal forms and schedules), individual returns for all states, state business returns (1120, 1120S, 1041, 1065, and 990), federal business returns (1120, 1120S, 1041, 1065, and 990), and gift and estate tax returns (709 and 706). There are no filing limits. You’ll need to get in contact with the provider of this tax prep software for professionals to find out the exact price, though.

User Experience

One of the best things about this tax preparation software company is that all its packages come with step-by-step onboarding support for new users. Not only will you get access to a personalized client portal, but you’ll also be able to make the most of the ProSeries automated data conversion capabilities. To make your transition to its software as smooth as possible, Intuit lets you convert previous tax year data from your current online tax preparation software and upload taxpayer personal information, important carryover amounts, and names of interest to your new tax-prep application.

Each ProSeries package comes with a 30-day money-back guarantee: If you decide you’re unhappy with Intuit’s solution within a month of receiving the product, you’ll receive a full refund.

The Bottom Line

Intuit’s ProSeries tax software contains a wide range of resources for simplifying the tax filing process, supports more than 3,700 forms and schedules, and offers various client management tools. The things that make it the best tax software for tax preparers are its attractive price points for small and mid-sized accounting firms, on-premise and cloud access, and seamless integration with other Intuit applications. On the downside, business returns are only available for more expensive packages, and the software cannot perform complex functions, such as consolidating subsidiary or oil and gas returns.

Developed by Drake Software and designed to meet the needs of small and mid-sized CPA and accounting firms, Drake Tax is one of the best tax prep software applications we’ve come across. This accurate, thorough, and streamlined solution offers excellent value to tax professionals handling any type of federal or state tax returns for a variety of client needs. Drake Tax provides a scalable solution that offers e-filing, multi-state returns, document management, tax organizers, and MFJ to MFS comparison for a fraction of the price many other companies would charge.

Pricing and Features

Developed to help tax specialists prepare and process their clients’ returns quickly and efficiently, Drake Tax is well-known as the cheapest tax software for tax professionals. However, that doesn’t mean that its features are lacking – on the contrary.

Although its services are mostly used by accounting firms with small to mid-sized business clients, Drake Tax also offers support for complex tax situations. The software comes with all 1040 forms, federal and state packages, as well as forms for S-corps, C-corps, partnerships, trusts, estates, and tax-exempt organizations. In addition to comprehensive filing capabilities, SecureFilePro (a paperless tool for obtaining your clients’ source documents), quick data import from third-party applications, refund estimators, planning tools, and review options also make Drake Tax the best software for tax preparers.

The three Drake Tax software packages are priced like this:

– Drake Tax Pay-Per-Return: The lowest tier is best suited for tax professionals who prepare less than 85 returns a year. For $330, this plan lets you file 15 returns at no extra charge, and you’ll be able to complete multiple state returns, e-file, or amend a return, and it’ll still count as a single return. Additional returns will cost you $22 each. After preparing 85 tax returns, your account will be automatically upgraded to Drake Tax Unlimited, the provider’s second tier. As a user of this cheap professional tax software solution, you’ll also be able to purchase the Drake Accounting Pro software for the discounted price of  $495 (the full price is $795). 

– Drake Tax Unlimited: This plan lets you prepare unlimited returns for an annual price of $1,595. Should you also decide to get Drake Accounting Pro, you’ll be charged $395 instead of the full price.

– Drake Tax Power Bundle: At $1,695, this plan combines two programs in one – Drake Tax and Drake Accounting Pro. You’ll get all the benefits of the Unlimited plan, plus integrated comprehensive accounting software.

As one of the tax software companies known for their affordable solutions, Drake offers seasonal discounts on its Unlimited and Power Bundle products. The deal is simple – the earlier you buy the application, the less you’ll pay. Purchasing in April or May will grant you a $400 discount; buying the software in June or July will chop $300 off the cost; you’ll pay $200 less if you make the order in August and September, while purchases made in October and November qualify for a $100 discount.

User Experience

Drake’s tax software for preparers comes as both a cloud-based solution and a desktop application. Both versions of the program are packed with features to help tax professionals prepare returns for their clients quickly and efficiently. The software is relatively easy to use, and it comes with demos, explanatory videos, a user manual, a handy reference guide, and similar resources we suggest you use to make the most of all capabilities offered by Drake Tax.

Users can get in touch with the customer support team for Drake’s online tax services via email, phone, or app. During tax season (from December 3 to April 19), agents are available from 8 a.m. until 10 p.m. ET, Monday through Friday, and from 8 a.m. to 6 p.m. ET on Saturdays. During the off-season (from April 20 until December 1), Drake’s support team is available from 8 a.m. to 9 p.m. ET Monday through Friday and from 9 a.m. to 5 p.m. ET on Saturdays.

The Bottom Line

This affordable tax preparation software for professionals comes with a comprehensive set of tax preparation, planning, and reporting tools. These make Drake Tax a great even for professional preparers who need to handle complex tax situations. There are drawbacks, however: Drake Tax doesn’t enable tax research and has limited third-party integration capabilities, so if that’s essential to your work, we suggest you look elsewhere.