Choosing the Right Tax Software

 

Choosing the right software program to start your tax business is an important decision. Most providers now give you the option of an online choice or a program installed on your personal computer or office network. This article highlights both positive and negative points about both software formats.

Be aware; the features discussed in this article relate to tax software used to prepare client tax returns for profit, not personal use software .

 

Benefits of Online Tax Software

 

Online software programs allow your office flexibility and mobility in both return preparation and management reporting. Many startup tax business owners prefer this option for its ability to allow employees to prepare returns outside of the office. Mobile tax services allow for marketing plans aimed at growing your client base by bringing Income Tax Filing directly to the customer.

Examples of mobile tax programs include preparers setting up at churches or organizations and preparing taxes at discounted rates. Many elderly clients value a personal tax accountant visiting their home. Schools, nursing homes, and organizations provide a place where multiple clients can be served in one visit. With online software, several preparers can work under one IRS license.

Many tax offices choose online programs due to cost savings, and online programs also allow tracking of returns and productivity without managing multiple EFINs. Wherever there is internet and a printer, you can prepare, file, and check the status of a tax return. Mobile broadband and WiFi on smartphones make it easy for preparers to bring their own internet connection.

 

Limitations of Online Tax Software

 

While online software allows mobility and freedom, it has some limits. All platforms must be IRS approved for E-filing services, but many managers are uncomfortable letting staff access office returns from outside PCs.

Another issue is preparers submitting returns off the clock without office approval. The office owner (Responsible Official) is responsible for all activity. Online software depends on the provider’s uptime. If servers or internet go down, you cannot prepare, print, or file returns. Your tax preparation business stops until service resumes.

 

Desktop Installed Tax Software

 

Desktop software installed on your office computer is very reliable. You control backups and manage outages. Preparers cannot access returns from any PC other than the one with the software installed. Mobile preparation is possible if preparers bring laptops with software installed.

Desktop software does not depend on internet to prepare or print returns. These programs have been tested longer than online options. Using multiple PCs requires networking and a designated server. Backup programs should run to off-site storage in case of fire or theft.

Both online and desktop software have pros and cons. Being offline because of internet or server issues is risky. For a new tax office, I choose desktop software. It gives control and ensures smooth Income Tax Filing, reliable Tax Services, and expert help from a trained Tax Accountant.