Tax software is the core of a tax preparer’s business—which is why the best professional tax software must include the ability to prepare both individual and business returns. The needs of tax preparers vary greatly based on their need for bookkeeping integrations, remote access, and budget.
The six best tax software for professionals are:
- ProSeries Professional: Best overall professional tax preparation software offering a balance between power and affordability
- ProConnect Tax Online: Best for QuickBooks Online ProAdvisors
- TaxAct Professional: Best value for preparing unlimited returns
- Drake Tax: Best value for preparing 30 or fewer individual and business returns
- Lacerte Tax: Best for complex returns, such as consolidations
- CCH Axcess Tax: Best cloud-based software to manage the whole firm
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Best Professional Tax Software Compared
Unlimited Returns | Pay-per-Return Plan | Return Bundles | Form 1040 | Forms 1120, 1120S & 1065 | Form 5500 | Form 990 | Forms 706 & 709 | |
|---|---|---|---|---|---|---|---|---|
 | $2,182 per year for unlimited 1040s for 4 states $3,011 per year for unlimited 1040s for any state Custom pricing for unlimited individual and business returns | $624 per year plus per return charge starting at $57 federal and $49 state | $993 for 20 Individual Federal and State Returns $1,442 for 50 Individual Federal and State Returns Custom pricing for 200 individual and business returns | ✓ | ✓ | N/A | ✓ | ✓ |
 | Quote upon request | Starts at $97.95 for individual and $117.95 for business returns | $2,999 for 100 Federal and State Returns $6,598 for 200 Federal and State Returns | ✓ | ✓ | N/A | ✓ | 709 only |
 | $925 for unlimited 1040s (1 user) $1,745 for unlimited returns of any type (1 user) | $150 plus $22.50 per 1040 (states excluded) $249 plus $29.95 per business return (states excluded) | $545 for 20 federal and state individual returns $795 for 50 federal and state returns of any type | ✓ | ✓ | N/A | ✓ | N/A |
 | $1,695 for unlimited 1040s $2,095 for unlimited returns of any type | $355 includes 10 1040s $34.99 per additional 1040 $49.99 per business returns | N/A | ✓ | ✓ | N/A | ✓ | 706 only |
 | Quote upon request | $783 per year, plus $96 per 1040 and $125 per business return | Quote upon request | ✓ | ✓ | ✓ | ✓ | ✓ |
 | Quote upon request | N/A | Quote upon request | ✓ | ✓ | ✓ | ✓ | ✓ |
Which Tax Preparation Software Is Right For You?
The best tax software for your professional tax firm depends on several factors:
- Number of returns: Some software offers per-return pricing while others offer unlimited returns for a single price. If you only need to prepare a few returns, it makes little sense to purchase unlimited returns.
- Type of returns: Some software offers special savings if you plan on preparing only individual returns and no business returns.
- Remote access: Most professional tax software programs are installed locally and are difficult to access remotely without sacrificing security. If you plan on allowing tax preparers to work remotely, buy a cloud-based software package or software that can be hosted for an additional fee.
- Return complication: Not all professional tax software can handle every complication in the tax code. If you plan on preparing extremely complex returns, like oil and gas partnerships, go with high-end tax software. It will cost more money, but you should be able to recover that with your fees for the complex returns.
ProSeries Professional: Best Overall Professional Tax Preparation Software
Pros
- Offers multiple packages to fit your needs
- Choose to enter data through forms or quick-entry sheets
- Integrated billing clock
- Free trial using the prior-year version is available
Cons
- Pay-per-return pricing charges extra for a state return
- No upfront pricing for some plans
- No multiuser access for Basic Plans
- Pricing for additional users in Professional Plans is not disclosed
Basic Plans (1040s Only)
- Basic 20: $993 for 20 individual returns from the same state
- Basic 50: $1,442 for 50 individual returns from 2 different states
- Basic Unlimited: $2,182 for unlimited individual returns from 4 different states
Basic plans cannot support multiple users.
Professional Plans
- Pay-Per-Return: $624 plus
- $57 per federal individual return
- $49 per state individual return
- $82 per federal business return
- $52 per state business return
- Choice 200: Custom pricing
- Includes any combination of 200 individual and business returns
- Additional returns can be purchased for the pay-per-return rates
- 1040 Complete: $3,011 per year
- Includes unlimited federal and state individual tax returns from any state
- Business returns can be added for the pay-per-return rates
- Power Tax Library: Custom pricing
- Includes unlimited federal and state individual and business returns from any state
Professional plans include 1 user, but additional users can be added for an undisclosed fee.
ProSeries strikes a great balance between power and affordability. It can prepare the moderately complex returns that the vast majority of preparers encounter for a lower cost than top-of-the-line software like Lacerte. It can process almost any tax return, including Forms 1040, 1120, 1120S, 1065, 1041, 990, 706, and 709. However, it cannot prepare Form 5500 returns. We’d recommend Lacerte if you plan on preparing consolidated or oil and gas returns.
It has all the features you’d expect from modern tax software, such as e-file management, downloading tax forms from financial institutions, and K-1 data transfers between returns. It offers four pricing tiers, with a great option for small firms preparing 200 or fewer returns per year or firms that focus exclusively on individual returns. The price is very reasonable, especially if you specialize in individual returns and purchase the 1040 Complete package
ProConnect Tax Online: Best Tax Software for QuickBooks Online ProAdvisors
Pros
- Cloud-based system eliminates information technology (IT) headaches
- Manage tax returns from your QuickBooks Online Accountant dashboard
- No annual license fee
Cons
- Pay-per-return pricing is expensive for high-volume preparers
- Unlimited returns option is very expensive
- Cannot handle more complex returns like consolidations
ProConnect charges a flat rate per return based on the number of returns you purchase. You purchase a bundle of returns up-front and then each time you file a return it will be deducted from the number of available returns. All pay-per-return purchases include unlimited users.
If you need additional returns later in the year, you can purchase them at the same per-return price as your original purchase. If you purchase too many returns, the excess returns will remain in your account and can be used for current or prior-year returns but will not carry over for use against subsequent-year returns.
New for 2023 returns, ProConnect is offering a couple of discounted bundles that make ProConnect competitively priced for small firms:
- Value 100: $2,999
- 100 returns (including up to 25 business returns)
- Single user only
- eSignatures not included
- Value 200: $6,598
- 200 returns (including up to 50 business returns)
- Unlimited users
- 200 eSignatures
- Infinity Package: Call for pricing
- Unlimited returns
- Unlimited users
- Unlimited eSignatures
The Value 100 package is a great value if it fits your mix of returns and you need only one user. If you purchase 100 returns with the pay-per-return pricing, you’ll pay $5,400 to $5,900—depending on your mix of individual and business returns.
If you’re an avid user of QuickBooks Online, you’re probably going to like ProConnect Tax Online, which is designed specifically to serve the tax preparation function for firms centered on QuickBooks Online Accountant. The programs integrate tightly and can be managed from a single dashboard inside QuickBooks Online Accountant.
In the past ProConnect has been too expensive for small firms, but with the introduction of the Value 100 and Value 200 bundles, ProConnect is now reasonably priced for small firms. It’s not even close to the most affordable software out there, but if you manage your clients using QuickBooks Online, the premium paid for ProConnect Tax is worth it.
QuickBooks Online ProAdvisors can try ProConnect for free and not pay until the return is filed. Its powerful software can prepare returns for Forms 1040, 1120, 1120S, 1065, 1041, 990, and 709. However, it can’t prepare Form 5500 and 706 returns. Its biggest drawback is the pay-per-return option is expensive for firms that need more than 200 total returns or 50 business returns.
TaxAct Professional: Best Value for Preparing Unlimited Returns
Pros
- Unlimited 1040s for $925 with 1 user
- Extensive support options
- Online data backup
Cons
- Additional fee applies for state returns and e-filing in Professional Federal Edition
- No tax research applications available
- Cannot prepare Forms 5500, 706, or 709
If you prepare only 1040s you have several options to choose from:
- 1040 Pay-Per-Return: $150 + $35 per state edition + $22.50 per return
- 1040 Twenty Bundle: $545 for 20 1040s with all states
- 1040 Bundle: $925—includes 1040 edition with all states and unlimited e-filing for one user
- 1040 Enterprise Bundle: $1,050 same as 1040 Bundle but for multiple users
If you prepare a mixture of business returns and 1040s, you can choose from the following options:
- Business Pay-Per-Return: $249 + $35 per state edition + $29.95 per business return + $22.50 per 1040
- Business Fifty Bundle: $795 for 50 returns consisting of both 1040s and business returns with all states
- Complete Bundle: $1,745 for unlimited returns of any type including all states for 1 user
- Complete Enterprise Bundle: $2,075 same as Complete Bundle but for multiple users
TaxAct Professional is the low-price leader in professional tax software, but it doesn’t sacrifice the quality of its features. There are several add-ons that allow you to customize the software based on your needs, including payment acceptance and practice management features. You can also access digital marketing capabilities and facilitate client returns. TaxAct Professional offers a money-back guarantee to all clients, allowing you to return it for a full refund within 30 days if you aren’t completely satisfied.
Drake Tax: Best Value for Preparing 30 or Fewer Individual & Business Returns
Pros
- Prepare Forms 1040, 1120, 1120S, 1065, 1041, 706, and 990
- Unlimited users and preparers included in all packages
- All 50 states included in all packages
Cons
- Navigation between input screens and forms isn’t intuitive
- User review scores are lower than other providers
- Cannot prepare 5500 or consolidated returns
Drake pricing is very straightforward as unlimited users and all state returns are included in each of its three packages:
- Pay per return: $355 includes 10 individual returns
- Additional individual returns are $34.99 each
- Business returns are $49.99 each
- Unlimited 1040s: $1,695 for unlimited individual returns
- Pro: $2,095 for returns of any type
I love Drake Tax’s very reasonable and straightforward pricing. You never pay extra for state returns, e-filing, or multiple users. Its attractive price―$355 for 10 individual returns plus pay-per-return pricing for business returns―makes it a good fit for tax firms that prepare 30 or fewer returns consisting of a mix of individual and business tax returns.
The platform has most of the same features as more expensive software, including client organizers, a tax planner, MFJ to MFS comparison, and multistate returns. The e-file center works like most professional software packages and includes an option to attach electronic client signatures, so there’s no need to print out Form 8879 for your client to sign.
Lacerte: Best for Preparing Complicated Tax Returns
Pros
- Consolidate subsidiary tax returns
- Complete complex oil and gas returns
- High-end software that provides a pay-per-return option
- Prepare Form 5500 returns
Cons
- No forms-based data entry
- Pay-per-return plan requires a $783 annual license fee
- No upfront pricing for bundles
- Lacerte 200 Federal 1040: Provides 200 individual returns for a fixed price and business returns for a pay-per-return fee
- Lacerte Unlimited: Provides unlimited individual and business returns for a fixed price
- Lacerte REP: $783 annually, plus:
- $96 per 1040 and one state
- $125 per federal business return and one state
- $83 per 5500 or 706
Lacerte is Intuit’s high-end tax preparation software for preparing the most complicated tax returns, such as consolidated returns and returns for oil and gas companies. It can import balances from QuickBooks Desktop and integrate with Intuit Practice Management. Lacerte is expensive, but with complicated returns, you should be able to recoup the cost through client fees.
You can prepare all individual and business returns, including Forms 1040, 1120, 1120S, 1065, 1041, and 990. It can also prepare gift and estate tax returns, forms 709 and 706 and form 5500 benefit plan returns. It includes time-saving features, such as importing forms from financial institutions, importing capital gain/loss transactions from a spreadsheet, and integrating with QuickBooks Accountant Desktop.
CCH Axcess Tax: Best Cloud-based Software to Manage the Whole Firm
Pros
- Cloud-based system eliminates IT headaches
- In-program links to CCH IntelliConnect research service
- Integrates with other CCH Axcess modules for cloud-based firm management
Cons
- No pricing available without speaking to a sales representative
- Many features require add-ons for an additional cost
- No pay-per-return option
CCH Axcess Tax doesn’t provide any pricing information without contacting a sales rep. However, they do mention that they have small firm packages available.
CCH Axcess Tax is one module of the CCH Axcess cloud-based firm management software. It’s good for small and midsized accounting firms looking for more than tax preparation software and that prefer cloud-based applications. It integrates with CCH IntelliConnect, a leading tax research service, to provide in-program links to relevant tax authorities and analysis.
While it’s disappointing that the CCH Axcess Tax website doesn’t provide more information on the platform’s features, it’s from CCH and Wolters Kluwer, so we have confidence that it will include all the standard features you need to prepare almost any return. Despite the lack of details, it made our list because of its integration with other CCH Axcess modules for cloud-based management for your entire firm.
When evaluating the best tax software for tax preparers, we considered the needs of tax professionals who prepare individual and business tax returns. The price of the software is a primary concern as are its features, such as importing data, integrating with client portals, and sending out returns and invoices for e-signature and e-payment.
Based on the needs of bookkeepers, accountants, and tax professionals, the criteria we used to evaluate the best tax software for professionals include:
- Pricing: We looked at how much the tax software costs, including annual fees and the amount you’ll need to pay, if any, per tax return.
- Features: The software should include all the features expected of modern software, including e-file management, easy data input, integration among all tax forms, and integration among federal and state returns.
- Ease of use: We looked at how efficient keying data into worksheets is and how easy it is to review the tax forms.
- Data import and accounting software integration: We considered whether the tax software can automate some of the data entry, including importing data from QuickBooks or Excel, extracting data from source documents using scan-and-fill technology, and downloading clients’ tax data directly from financial institutions.
- Practice management integration: We looked at whether the tax software integrates with practice management software.
- Electronic file sharing and client portal integration: We considered whether the tax software helps gather information from clients and sends completed tax returns to them digitally, including printing returns to a client portal, or whether clients have to fill out a digital organizer and upload their documents.
- Electronic signatures: We looked at whether the tax software can collect digital signatures for e-filing.
Frequently Asked Questions (FAQs)
Paid tax preparers must use professional tax software that allows them to sign the return as a paid preparer and e-file the return as an Electronic Return Originator (ERO). Popular platforms include ProSeries, ProConnect, Drake Tax, Lacerte, TaxAct Professional, and CCH Axcess Tax.
The tax software for your CPA firm depends primarily on the number, type, and complexity of returns you expect to file. For instance, TaxAct Professional is great for filing an unlimited number of individual returns, while Lacerte Tax is commonly considered the best software for extremely complex returns.
Our recommended tax software for small accounting firms is ProSeries Professional by Intuit. It offers a great balance of affordability and power. Sole proprietors preparing 30 or fewer returns per year might consider Drake Tax, which provides a very affordable way to produce a mix of individual and business tax returns.
Yes, it will, and recertification frequency depends on the type of certification you hold. QuickBooks Online ProAdvisors need to recertify by June 30 each year to maintain their certifications.
Bottom Line
The best professional tax software for your business is the one that provides a pricing option that fits the number and types of tax returns you prepare. However, you must also consider your need to prepare complex returns and the time you could save with bookkeeping software and practice management integrations.
