Change isn’t always easy. But sometimes it’s worth it, like when you’re a tax preparer working with professional tax software that gives you headaches and costs you time. A new and improved tax software solution might be just the thing to enhance your efficiency, make life a little easier, or just increase your bottom line. In this article, we’re diving into five compelling reasons why switching tax preparation software can significantly improve your business.
Choosing the Right Software For Your Business Can Save You Money
In the world of tax preparation, time is money. The more time you have, the more returns you can prepare. So outdated or subpar software that isn’t user-friendly can be time-consuming and prone to errors, leading to costly mistakes that eat into your profits. By choosing highly-rated and up-to-date software for your business, you can streamline your processes, reduce errors, and ultimately save money.
Of course, the cost of the software itself is also something to consider. Sometimes, new preparers opt for baseline software packages that eventually no longer support the volume of returns they are filing. For example, many tax service bureaus charge back-end fees that aren’t always disclosed upfront such as efile fees, transmission fees, and bank fees. If you file relatively few returns your first tax season, these fees may be nominal, but as your business grows, they can add up quickly. You may not even realize you’ve been charged until tax season is over, and your bill is higher than expected. If you plan to file more than a handful of returns, you’re almost always better off choosing a software with an upfront flat fee that includes unlimited filing.
Reason 2: Cloud-Based Software Can Allow More Flexibility
Gone are the days of being tied to a specific location to do your tax preparation work. With cloud-based tax preparation software, you can enjoy the freedom to work from anywhere with an internet connection. This flexibility is especially beneficial for tax preparers who want to cater to clients beyond their local area or those who prefer a more mobile and dynamic work environment.
Cloud-based tax software enables you to access client data securely from any device, collaborate with team members seamlessly, and even communicate with clients in real-time. This level of flexibility not only enhances your work-life balance, but also allows you to better serve clients who may be located in different time zones or have varying schedules.
Another advantage of cloud-based software is automatic updates and data backups. If you always find it a hassle to update your software and back up client data regularly, you’ll love the convenience of cloud-based software.
Reason 3: Some Tax Preparation Software Comes With Extras
Some software solutions go above and beyond by offering additional features that can greatly benefit your business. One notable example is the TaxesToGo™ app, a companion tool that comes with certain tax software packages. This app allows your clients to securely upload and sign their tax documents using their smartphones.
Features like this can simplify the document collection process, making it convenient for clients to submit the necessary paperwork without the need for in-person visits. This not only enhances the client experience but also saves you time on administrative tasks, allowing you to focus on other areas of your business..
Reason 4: Save Time With Automatic Data Population
One of the most time-consuming aspects of tax preparation is entering data from various documents into your tax software. Thankfully, many tax preparation software solutions can carry over returning customers’ data from previous years. Some also include apps that allow clients to scan and send their tax documents to you securely. These apps synch with your software, automatically extracting and populating basic data fields like personal information and dependents, while leaving the more complex fields like W2 information to your expert eye.
If you’re still entering all of your data manually, imagine the time savings and reduction in data entry errors you could experience by switching software. You could handle a higher volume of clients without sacrificing the accuracy of your work, ensuring more happy clients and more profits.
Reason 5: Integration with Ancillary Products
Tax preparers often offer a range of ancillary products and services to diversify their revenue streams and provide comprehensive solutions to clients. Switching to tax preparation software that seamlessly integrates with ancillary products, such as bank products, refund advance loans, audit protection, and identity protection, can make them easier to offer.
Many tax software solutions now offer built-in features that facilitate the integration of these ancillary products. This not only simplifies the process of offering additional services to your clients but also ensures a cohesive and efficient workflow. For example, the software can assist with the application process for refund advance loans, provide easy access to audit protection services, and seamlessly incorporate identity protection measures into the tax preparation workflow.
Conclusion
If you feel like your professional tax software isn’t serving you as well as it could, you’re probably right. It’s time to look into other options that can save time, reduce errors, and enhance your clients’ overall experience. From saving money to enjoying the flexibility of cloud-based solutions, upgrading your software might be the best thing you do for your business all year. As you weigh your options, consider not just the basic functionalities but also the extras that can set a software solution apart. Whether it’s a handy app for clients or features that automate data entry, these extras can make a significant difference in your day-to-day operations.
Overall, embracing the latest in tax preparation tech isn’t frivolous—it’s a strategic move for the health of your business.