The most recent Federal Income Tax 2024 data indicates that Americans filed 153.6 million tax returns. Who also claimed to have earned over $14.7 trillion in adjusted gross income (AGI) and paid close to $2.2 trillion in individual income tax. According to IBISWorld, roughly 425,000–450,000 legal firms in the US handle these taxes and the market size for online legal services, as determined by revenue, was $12.6 billion in 2023.

But did you know these legal firms handle these taxes with sophisticated software? However, what are these and why do CPAs and law firms use these softwares for tax planning, tax compliance, financial strategy, financial reporting, lease negotiations, treasury management, and others?

You will therefore find the Top 10 Tax Preparation Software for CPAs and Accounting Firms in the USA in this article. 

Let’s start with knowing about these softwares.

What is tax preparation software?

Tax preparation software facilitates the electronic preparation and filing of tax returns by accounting firms, or CPAs. It allows users and these firms to automatically calculate how much tax is owed and how much of a refund one can expect to receive.

Why do CPAs and Accounting firms rely on these tax preparation software?

Filing taxes is not just less than sitting on the fence, it requires expertise, experience, and the right tools. However, this sophisticated tax preparation software can easily alleviate your tax filing headaches. In actuality, these softwares do more for you than just making filing taxes easy for you.  

If you are a novice or first-time taxpayer who is concerned about upgrading from the good old-fashioned pen-and-paper returns sent via snail mail, you can experience the comforting feeling of filing taxes. Then these softwares can do a lot that goes beyond your online tax filing. 

See if using tax software makes sense for you and your tax situation as we examine some of its benefits in more detail. Let us find out what these are.

Favors of using tax preparation software

These online tax reporting tools are equipped to handle even the most complicated tax scenarios. 

It comes with a more user-friendly interface and saves you time from mailing your paper return tax to Uncle Sam. 

Since it is available online, you have enough time to fill out the taxes accordingly. You no longer need to worry if your friend or neighbor pays you an unexpected visit, asks to spend time with you, or asks to gossip. Now, relax and imagine that you are in the middle of filing. Just save your current progress and enjoy their company.

Beat the paperwork by keeping your tax forms and information all in one convenient online location. 

Use Tax Preparation Software and don’t spoil your experience. No matter whether you are a newbie or experienced in filing taxes, you will feel the same experience of tax filing. 

Handle the more complex situations of your tax, whether you are a full-time or a part-time employee, or both easily manage your financial situations and fill taxes accordingly. 

These are just a few situations in which law firms and CPAs can handle practically all of your financial problems just by using tax preparation software. 

But do you know that when business grows, the management of tax preparations also gets perplexed? 

CPAs and law firms require a careful approach to ensure client satisfaction. To ensure they are giving their clients satisfactory service by having their tax returns filled out perfectly, they must ensure that they have the best tax software for CPAs and accounting firms.

Are you aware, though, that not all businesses have the same needs, and that no software is ideal and should be used by all businesses? 

Your onsite team can work wonders with the software if they have the right team that knows how to use it in accordance with business needs, but it can be a very expensive arrangement. However, this costly deal can be compensated with the assistance of outsourcing.

10 Best and latest tax preparation software for CPAs and accounting firms in the USA

To run their law firms flawlessly, most businesses use a few standard tax preparation software. 

1. Turbotax Intuit

turbotax - tax software for businesses

Intuit’s TurboTax is a software program designed to help you file your US taxes. Tax professionals and law firms can easily file their simple or complicated taxes with the help of TurboTax Intuit software, which combines tax expertise with an intuitive user interface. 

Services Turbotax Intuit tax preparation software offers

  • TurboTax offers several versions, ranging in complexity from free for basic returns to more expensive versions for people with investments or self-employment income, for those who would rather file their taxes independently. 
  • TurboTax provides options to connect with tax experts who can answer your questions and review your return if you need live tax assistance but do not want to hire a professional to do your taxes entirely.
  • They advertise that their calculations are accurate, meaning you’ll get the maximum refund you’re entitled to.
  • Make use of their tax reporting software to ascertain the worth of donated goods, ensuring a clear comprehension of contributions that qualify for tax deductions.

Pricing

Start with their free trial and then go with their $129 plan based on your basic details like job, family and all.

Ratings

4.0 /5 according to the Capterra

2. Bloomberg Tax

When it comes to the intricate technical requirements involved in calculating your income tax provision, Bloomberg Tax Provision offers the most prominent solution. This user-friendly software offers a streamlined, controlled environment that uses a balance sheet approach to comply with US GAAP, helping you manage risk and shorten the time spent on your ASC 740 procedures. 

Why Bloomberg tax preparation software should be on your list

This extensive ASC 740 calculation engine allows CPAs and law firms to:

  • The software can be installed in a couple of minutes and automatically calculates its footnote disclosure. 
  • Export a single, all-inclusive spreadsheet reporting package with ease.
  • Provide a state-by-state calculation of the provision for greater precision.
  • Maintain a record of UTBs based on footnote disclosure requirements, and the software will automatically determine the associated deferred consequences.
  • With no configuration screens, independent modules, system codes, or add-ons to worry about, you can simply navigate the provisioning process.

Pricing

Fill out their Request Pricing Page to ask for prices 

Ratings

3.0 /5 according to Gartner

3. Sage Group

This cutting-edge tax preparation software, powered by artificial intelligence and compatible with the newest technologies, makes life easier for businesses of all kinds. Their technology offers business insights and automates invoices, benefiting millions of people globally by reducing friction. With Sage, users accomplish more than payroll and accounting software.

Why Prefer Sage for tax preparation software

  • You can control your stock levels and make sure you always have the appropriate amounts on hand with accounting.
  • With every new incoming or outgoing transaction, its advanced inventory enables the automatic and ongoing updating of your accounting records.
  • Features in Sage Business Cloud help you with all aspects of running your company, from sales and purchases to cash flow, VAT, and reporting.
  • Law firms and CPAs can use the Project Tracker to easily track the performance of individual business areas by using code analysis. 
  • Companies can link bank accounts to Sage Business Cloud Accounting with this state-of-the-art software to automatically match transactions and invoices.

Pricing

You can try this software by its trial version, and then go with their monthly or yearly plan with their different options.

Ratings

4.3 /5 according to the Trustpilot

4. Lacerte

Lacerte Tax is a complete software for managing corporate tax returns, ranging from intricate to basic. It offers online access, sophisticated diagnostics, and extensive form coverage. This comprehensive software for corporate tax returns manages both simple and complex returns. Lacerte Tax, with its extensive form coverage and sophisticated diagnostics, is intended primarily for tax professionals who require extra assistance with tax planning.

Why Try Lacerte tax preparation software?

  • The flat input worksheet design facilitates quicker navigation and data entry.
  • 32 integrated time-saving features, like the missing client data utility, reduce the difficulty of finding client data.  
  • With its automated calculations and more than 25,000 diagnostics on 5,700 individual and business forms, businesses can be assured of accuracy. 
  • Their online assistance and phone support are ready to quickly answer any questions you have.
  • Lacerte gives you access from anywhere at any time, eliminates IT headaches, and gives you the flexibility to hire virtual employees
  • Transform data from previous tax years, such as names of interest, taxpayer personal information, significant carryover amounts, and more, into this cutting-edge tax reporting tool from your existing tax preparation software.

Pricing

It comes with three plans: Essential, Plus, and Advanced. A sales quote is required for each plan. 

Ratings

4.4 /5 according to the Get App

5. Drake

Drake Accounting is an accounting software designed for accounting firms to manage client finances. It offers features for bookkeeping, accounts payable, and accounts receivable, allowing firms to track income, expenses, and client transactions.

Features of Drake tax preparation software

  • Drake Accounting can automatically make journal entries in any of the five journals: general, cash receipts, cash disbursements, payroll, and budget.
  • Businesses of all sizes have the option to post transactions on a monthly basis, close the books at the end of the year, aggregate cash amounts, and format financial reports with unique headers, footnotes, and logos. 
  • Businesses can use the majority of word processing programs to view or further customize any of the financial reports.
  • Drake includes a feature called Quick Payment that assists vendors (1099-MISC) and other payees with live or ATF payments. 
  • Organizations can generate Form 1099-MISC at year-end and e-file or print as necessary.

Pricing

This program is available for trial, after which you can purchase the $795 Form Edition or Professional Edition.

Ratings

4.0 /5 according to the Gartner 

6. Tax Savage

Taxx Savage is an easy-to-use comprehensive bookkeeping and accounting software that allows businesses to easily manage their taxes. This professional tax preparation software in ‘the cloud’ helps businesses scan and upload documents, file returns, and manage taxes from any location with their contemporary cloud-based software solution, which neatly fits on the side of your website. Among its many features is the ability to prepare returns for multiple countries and to calculate and collect VAT in large quantities.  

Why Tax Savage is touted as the best tax prep software for law firms and CPAs

  • This tax reporting tool supports the following devices: Android, iPad, and iPhone.
  • Even without an EFIN (Electronic Filing Identification Number), which is crucial for certain tax professionals, businesses can still file returns.
  • Provides easy cooperation with support for multi-state client tax filing. 
  • This state-of-the-art tax preparation software offers free courses on the fundamentals of tax preparation, CEs, and marketing assistance, including social media pack creation, business card and flyer creation, logo creation, and more.
  • This software focuses on secure data storage for client tax information.

Pricing

Their pricing starts with the free trial and goes to $599 based on your tax complexity.

Ratings

4.0 /5 according to the Software Advice

7. ProSeries Tax

Law firms and CPAs use Intuit ProSeries Tax, a cloud-based tax management software, to prepare returns, file electronic forms, and monitor tax filing errors using diagnostic tools. A few of the features are data import, encrypted files, multi-user access, e-signature, and multi-year e-filing.

Attributes of the ProSeries Tax 

  • Organizations can effortlessly file tax returns, oversee tax submissions, monitor the status of returns, and more. 
  • Law firms and CPAs find it a very simple process after using the software to manage, monitor, and view electronically filed returns and prepare taxes. 
  • Businesses can access features like multi-user access, e-signature, status tracking, multi-year e-filing, encrypted PDF files, and data import.
  • This tax reporting software comes with features including multi-user access, e-signature, status tracking, multi-year e-filing, encrypted PDF files, and data import.
  • The application offers a library of forms, including 1040, 1041, and 1120. It also integrates with SmartVault, enabling users to manage documents and import returns through the client portal. Data can be transferred to individual returns using K-1 data import.

Pricing

For pricing, fill out their sales page and sign in with the details.

Ratings

4.0 /5 according to the Software Advice

8. H&R Block

The global provider of consumer tax services is H&R Block Inc. (H&R Block). It offers DIY products through channels such as in-person, online and mobile applications, and desktop software. In addition, the business provides services like tax identity shield, extended service plans, emerald prepaid MasterCards, refund transfers, refund advance loans, and instant cash back. It provides retail and commercial clients in the Americas, Asia-Pacific, and Europe with services through offices, franchises, and online portals. 

Why H&R Block is on favorite list of CPAs and law firms

  • Utilizing H&R tax preparation software is an economical option that leads to the do-it-yourself method. 
  • With detailed instructions, businesses can import their federal tax return into their state tax return with ease.
  • You will receive an accurate refund amount from this tax preparation software prior to filing your taxes.
  • Its recent integration with Crypto H&R eliminates one of the biggest pain points for cryptocurrency investors’ manual entry
  • More people can use it than most other free software packages because it lets you file a 1040 plus limited Schedules 1, 2, and 3.

Pricing

The $35 basic plan is followed by the $99 premium and business plans. They do not offer any free trial

Ratings

4.3/5 according to the Get app

9. TaxSlayer

TaxSlayer Pro is an expert tax preparation tool that has everything you need to support your clients’ success, from payroll and HR to individual and corporate filings. It walks you through every step of the process of preparing a comprehensive tax return of the highest caliber. Using the appropriate form, such as the recently introduced 1040 Series form, you can effortlessly prepare returns for clients with this premium package designed for tax preparers across the USA.

What makes TaxSlayer tax preparation software different? 

  • Clients can safely transmit their tax information through it without ever having to visit the office.
  • Their partnerships with the most reputable banks enable your clients to conveniently check the status of their refunds. 
  • With this expert tax preparation software, which was created by tax preparers for tax preparers, one can create 1040 federal, state, and local tax returns.

Pricing

First, try it with the free version and then choose the plan according to different plans

Ratings

4.3/5 according to the Capterra

10. UltraTax CS

The professional tax software UltraTax CS is cloud-based and intended to assist tax preparers in automating corporate tax workflows and streamlining document management. Businesses can view forms, input, diagnostics, previous year’s input, and more on up to four separate monitors simultaneously thanks to its multi-monitor flexibility.

Key features of UltraTax CS

  • This state-of-the-art includes sophisticated tax planning capabilities, document management, asset management, electronic filing, and data exchange.
  • Tax professionals can quickly retrieve lists of fields containing client data from previous year’s returns thanks to this solution.
  • Managers can use e-file tools to track each stage of the process and automatically link returns based on Tax ID numbers.
  • With the apportionment grid for business returns and the multi-state allocation grid for K-1 or Schedule C income across several states, UltraTax CS provides multi-state processing.
  • It includes an eSignaturde add-on module that lets teams use mobile devices to get client signatures from anywhere.

Pricing

The customer must fill out the form, and the amount paid will depend on how complicated the taxes are. However, you can avail of its trial 

Ratings

3.8/5 according to the Get app

Worth Reading:- Top Tax Software for Small Businesses and Professionals

Essence of the Words

In the section above, we talked about the newest and most useful tax preparation software. But as technology advances, it constantly updates itself, so you will need an employee who knows exactly how to use these tools. 

Well, it is very difficult to hire the employee frequently as per the technology standards. But you can hire an offshore employee or team as an alternative. This team of remote employees will keep you up to date on software updates by providing you with the newest tools, technologies, and methodologies. 

Your business and team will stay ahead in this competitive market when you go with the virtual employee option. These are updated in accordance with the newest tools, technologies, and trends in addition to being reasonably priced.

Transform your tax season with Invedus Outsource. Our specialized tax preparation services for CPAs and accounting firms in the USA ensure you stay ahead with precision and professionalism.

Partner with Invedus today and experience seamless financial management. Contact Invedus

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