Tax preparation software is a product in a tax professional’s office that is as essential as an adding machine. During tax season, every preparer finds certain inefficiencies they would like to have improved in the tax preparation package they use. With client tax data rolling forward from prior years, it is no small task to change to new tax software, but several preparers have switched tax software to find the best package for their office.
Tax professionals love the way tax software makes their life easier by ensuring accurate returns but hate the inefficiencies that exist and calculations that change based on last-minute new legislation. This hurried process on capital hill spills over to tax software developers, leaving a small window to incorporate all the changes into new forms in time for January the 15th, arguably the beginning of tax season.
Tax software is distinctive in its design based on the complexity of the office. Basic 1040 prep packages are designed for quick turnaround tax prep offices that may even key the essential data into the package on the spot while talking with the tax client. More sophisticated tax suites incorporate tax planning, research, trial balance, business return and automatic K-1 transfer into the 1040. The most sophisticated software builds in management, review and documentation retrieval. While robust for sophisticated clientele, it can be overkill for the small 1040 high volume tax prep office.
Talking with tax professionals from around the nation, we found out which drop-down menus were hard to reach, which operating environments were too complicated and which companies did not back up their product with enough support. This process, followed by a close analysis of 1040 tax preparation software packages in our own offices, brought to light the What 10 Tax Professionals Hate About Their Tax Software.
What Tax Pros Had To Say:
David from Illinois
CCH Small Firm Services ATX MAX
Hate About It
I use CCH’s ATX tax software. I think the support during tax season needs to be improved. I do not mind searching the database for answers after 4-15. I need quick human support with short wait time during tax season.
Love About It
The 1040 package is a good value for your money.
Improve It
I would like to see the software run in the cloud. This will reduce our hardware and operating costs.
Robert from Tennessee
CCH Small Firm Services ATX MAX
Hate About It
First of all, the e-filing section is very confusing, cluttered, and hard to figure out. Second, the Client Organizer is far too long. A typical ATX organizer is 20+ pages, and my clients complained about it so much that I no longer use it. It wastes far too much paper. An option for a condensed organizer would be welcome. Third, the only way to print the client list is in landscape, and all of a client’s information is spread out horizontally over about six pages.
Love About It
While I don’t prepare a lot of returns, only about 200, most of those are fairly complex with multiple Schedules C, E, & F, etc and a lot of 1041s. I have not found any situations that ATX cannot handle competently. I enjoy having an affordable program that will do all federal and state returns. I find that the price is quite reasonable, and have already renewed for the next tax season. ATX’s technical support is excellent and very responsive! I consider myself a loyal customer.
Improve It
I would like to see ATX offer a secure Web-based preparation option.
Sue from New Jersey
Intuit ProSeries
Hate About It
Although there is much to love, Intuit Customer and Technology Service has become horrific. I am not the person that picks up the phone without independently and diligently trying to troubleshoot an issue, so when I call, it means there is a problem. I have called on software problem issues as well as program tax calculations. Trying to get a problem resolved is difficult because Intuit has practically eliminated the human element, or at least I have found it to be so time consuming and torturous that it is easier to work my way around the program for the issues rather than get them fixed. Also, I have had problems, year after year, transferring invoices into QuickBooks.
Love About It
I love the fact that I can use the forms entry mode. After hand preparing tax returns for many years, it was very easy to translate to the technology environment. It also has a number of the features a more expensive product has such as professional letter preparation, tax organizer, unlimited e-file and more.
Improve It
If I were going to fix anything, I would bring ProSeries back to a time when customers were a priority and problems were corrected more quickly. Although customer service is my biggest issue, I guess I can say at this point that I still love ProSeries enough to look the other way.
Eileen from Massachusetts
CCH Small Firm Services ATX MAX
Hate About It
The price. Several years ago when ATX was a small company, the MAX package was less than $500. It was reasonably affordable for small practitioners with less than 100 clients, and did all types of returns—from individuals, to partnerships, to corporations, to estates. Now, that this good company has teamed up with Wall Street’s, CCH, the same package is over $1,200 assuming a 10% early payment discount. OUTRAGEOUS! Additionally, there are too many gimmicks—deferred payments, purchasing a cheaper 1040 package but getting nailed with $100 charges for purchasing blocks of 5 returns which allow you to do returns not offered in the cheaper 1040 package. This arrangement does NOT help small practitioners. CCH is assuming that just because you have a small practice, you must only be doing 1040 individual returns. My practice is small, however, I do a variety of states, a variety of entities, as well as prepare 1099s and W-2s on occasion. I can’t use the cheaper package, and it is unaffordable to keep tacking on $100 fees.
Love About It
It is a very good package. Additionally, they still accept checks. It is my company policy not to transact business online and I do not believe in plastic when making purchases.
Improve It
Their claim is to be the “small practice section” but it seems like the pricing is targeted for the big-spending, non-tax-paying wealthy.
Lawrence from California
CCH ProSystem fx Suite
Hate About It
The price. I think the larger firms are getting really good breaks. They need to give us a break. I’ve referred new customers to them and didn’t get any thank yous. They need more customers so the cost can be spread among more users. They keep pushing Worksheet View. That might work in some practices, but will not work for mine. Let’s keep Interview Forms.
Love About It
They listen to us. Suggested enhancements show up in later versions.
Improve It
Don’t get rid of Interview Forms - it works. Keep listening to us. Help us manage our practices and make us look good. However, stop nickel & diming us. Give us at least 100 click charges as part of our subscription and loyalty. Please remember there are a lot of small practices that use ProSystem. Don’t forget us.
Alfredo from Texas
Thomson Reuters UltraTax
Hate About It
I do wish that the Texas state franchise tax reports could be filed electronically.
Love About It
I use UltraTax in a virtual “cloud” environment. The virtual environment keeps all the software and client data off my computers and in a very secure server farm. It also allows me to pull up my “office” from home, clients offices or from the “road”.
The software integrates with all the other Thomson Reuters accounting and tax products, such as file cabinet, write up, fixed assets, etc.
Improve It
Allow multiple clients to be open at one time. This would help with the consolidated or affiliate reporting. I would also like to see a better client data report writer.
Brent from Maryland
CCH ProSystem fx Suite
Hate About It
CCH charges an arm and a leg for its products. It nickel and dimes you for just about everything and makes you pay well in advance for the next year if you want any discounts. The system is built on old technology (I think) that just gets the band aid treatment annually.
Love About It
It is built to handle the most difficult returns and CCH’s technical staff is knowledgeable, helpful and available.
Improve It
CCH’s billing structure should be overhauled. They are just too expensive for what they provide compared to their competition. They need to start from scratch and build a new program. We are moving to Thomson Reuters for about half the price, smoother and more efficient technology, and a lot more bells and whistles. Only time will tell whether their technical people are as responsive and their prices stay reasonable.
Gerard from Louisiana
Intuit Lacerte
Hate About It
Price is tough but we have managed. With all software packages, still worry that conversion to next year is done right.
Love About It
Efficient quality product. Where we have voluminous returns, have to have a product like this.
Improve It
Those worried about price could have serious consequences if they have a complicated return and lower cost package does not do all the calcs (carry forwards, limitations, etc.).
Jayne from Oregon
Drake
Hate About It
I just changed this year from another software (I used to use ATX). What I liked about the prior software was the flexibility to override when necessary and to keep track of the changes as I worked the return. I’m having to adjust to working on the templates and running the “View” to see the results. Let me give you one override example: Today I prepared a 2009 fiduciary return and because the estate is closing, I wanted to include the penalty and interest on the late payment for the IRS. I was able in ATX to create a worksheet showing the calculation of the penalty and interest and affix it to the amount due. The software doesn’t do that, but I could do that with an attached statement. I could not do the same thing with the 2010 return in Drake or at least I haven’t yet learned if I can do that in Drake.
Love About It
I was sold on three features:
One was the price. Every other software I have been exposed to has become so expensive it isn’t cost effective for the size and economic status of my client base.
One was the customer support. I get real answers that work from the people who answer the phones and the people who answer e-mail. With ATX I was often on the phone long distance tying up my phone line so clients couldn’t call me for hours while we traced out the problem that they couldn’t fix because they couldn’t see it on the screen.
One was the comprehensive package. Every other software I’ve been exposed to has add-ons for research, add-ons for e-filing, add-ons for comprehensive support, etc. Drake puts all the things you need in one package for one reasonable price. And they have good tutorials that are free so you can learn how to use their software without additional cost.
Improve It
Sometimes a figure is generated by input on 1099 screens or W-2 screens and there is a space in the template for an adjustment. But there is no evidence on the template page that there is a 1099 or a W-2 behind the template creating an entry on the form. It would be nice if there were a way to see what you are adjusting or at the very least a clue that there is a calculation going on in the background.
Marjorie from Texas
Intuit Lacerte
Hate About It
The wait time if I have a question. They want us to use the Internet and ask the question and then wait for an answer. Because I never ask the question exactly correct, I never get the right answer.
Love About It
The way it keeps all of the data from year to year.
Improve It
The price has gotten way too high, and the wait time too great. I have contacted more vendors for the 2012 tax season. Mine, you have to renew in May to get the deep discount and I do not have time until at least June to look at other software.
For more information about tax software likes and dislikes, check out the 2011 Tax Software Survey at http://www.aicpa.org/publications/taxadviser/2011/august/pages/bonner_aug11.aspx. If you would like to have your voice heard, send your hate, love and improvement suggestions about a particular 1040 tax preparation product to
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