Choosing Your Tax Software (And the Tools You Actually Need)

Choosing tax software is one of the first major decisions a new tax preparer has to make.

In this episode, Jason Carr explains how to evaluate professional tax software without getting overwhelmed. Your tax software is where you will spend most of your working hours during tax season, so the choice matters. But for most new preparers, the best choice is not necessarily the most expensive or most complex platform.

Jason compares five common tax software options for independent preparers:

• Drake Software
• Lacerte
• ProConnect Tax Online
• UltraTax CS
• TaxSlayer Pro

He also explains why most first-year preparers should focus on whether the software can competently handle basic individual returns, including W-2s, 1099s, itemized deductions, and common credits.

Beyond tax software, Jason outlines the four-tool starter stack for a lean tax preparation business: tax software, secure document sharing, scheduling, and a bookkeeping system for your own business.

If you are launching a tax prep business and trying to decide what technology you actually need, this episode gives you a practical starting point.

Key Takeaways

• Tax software is your core technology decision: It is where you will spend most of your working hours during tax season.
• Drake Software is popular with solo and small-firm preparers: It is known for straightforward pricing, speed, reliability, and broad return coverage, though the interface can feel dated.
• Lacerte is powerful and user-friendly: It handles complex returns well and has strong keyboard shortcuts, but it is usually more expensive.
• ProConnect Tax Online is a cloud-based option: It can be a good fit for new preparers who want lower upfront cost and access from multiple locations.
• UltraTax CS is built for larger firms: It is highly capable, but its pricing and feature set are generally better suited for established practices.
• TaxSlayer Pro can work for budget-conscious beginners: It is web-based, competitively priced, and can be a practical option for a first season with lower return volume.
• First-year preparers should match software to likely client needs: For many new preparers, that means individual 1040 returns with W-2s, 1099s, itemized deductions, and basic credits.
• Do not overbuild your tech stack: Start with four tools: tax software, secure document sharing, scheduling, and bookkeeping.
• Secure document sharing matters: Clients should have a safer way to send W-2s, 1099s, and other documents than unencrypted email attachments.
• You can switch software later: The best first-year platform is the one you can afford, learn, and use efficiently.

Suggested Episode Timestamps

00:00: Why tax software is the biggest tech decision

00:45: The five professional-grade platforms to know

01:10: Drake Software: popular, fast, and reliable

02:05: Lacerte: powerful but more expensive

03:00: ProConnect Tax Online: cloud-based and flexible

03:50: UltraTax CS: built for larger firms

04:35: TaxSlayer Pro: budget-friendly for newer preparers

05:30: How to choose software in your first year

06:45: Why “best” software depends on your practice

07:35: The four tools every new preparer needs

08:00: Secure document sharing

08:45: Scheduling software

09:15: Bookkeeping for your own business

09:50: The simple starter tech stack

10:25: How MuseSpring helps you compare platforms

11:00: Closing

Resources Mentioned

• MuseSpring: https://musespring.com
• Tax Business Blueprint Program: https://musespring.com
• The Law Office of Jason Carr, PLLC: https://carrtaxlaw.com 

Transcript

SPEAKER_01 0:02

You trained for the career. Now build the business. This is the New Spring Minute, where aspiring tax professionals learn to launch and scale their own practice. Here's your host, Jason Carr.

SPEAKER_00 0:22

Your tax software is a single most important technology decision you'll make in this business. It's where you'll spend the majority of your working hours during tax season. So let me walk you through the options and help you make a smart choice without overthinking it. There are basically five professional grade tax software platforms that most independent preparers use. Each one has trade-offs. Drake Software is probably the most popular choice for solo and small firm preparers. The pricing is straightforward. You pay an annual license fee based on how many returns you expect to file. It handles individual, business, and state returns. The interface looks dated, but it's fast and reliable. Many experienced preparers swear by it. Lacert, made by Intuit, is considered one of the most user-friendly options. It's powerful, the keyboard shortcuts are excellent for speed, and it handles complex returns well. The downside is price. Lassert is on the more expensive end, and Intuit's pricing model includes per return fees that add up. ProConnect Tax Online, also by Intuit, is the cloud-based alternative to LeCert. Lower cost, accessible from any device, and good for preparers who want to work from multiple locations. It doesn't have all the LeCert's features, but for a new preparer handling individual returns and small business returns, it's solid. UltraTax CS by Thomson Reuters is the software that larger firms use. Extremely capable, but the pricing is geared towards established practices with higher volume. Probably not where you start in year one, but worth knowing about for the future. Taxlayer Pro is a budget-friendly option. It's web-based, the pricing is competitive, and it handles individual and small business returns well. If you're starting with a tight budget and expect to file fewer than 50 returns in your first season, Taxlayer Pro can get you going without a heavy upfront investment. Here's my advice for your first year. Pick the software you can afford that handles the return types your clients will need. For most new preparers, that means individual 1040s with W2s, 1099s, itemized deductions and basic credits, or small business owners with a single Schedule C. Every one of these platforms handles those returns competently. Don't spend three months agonizing over which software is the best. The best software is the one you learn, use, and build efficiency with over time. You can always switch later as your practice grows. Beyond your tax software, here's what else you'll need in your toolkit. A secure document sharing platform. Your clients need a way to send you their W-2s and 1099s without emailing unencrypted PDFs. Platforms like Sharefile, Smart Vault, Canopy, or even a simple encrypted folder through Google Drive or Dropbox works. You'll also need a scheduling tool. Callendly, Acuity, You Can Book Me, or something similar. Let clients book their own appointments instead of going back and forth over email. You also need a simple accounting system for your own business. QuickBooks Self-Eployed or WAVE, which is free, will handle your own bookkeeping. Track your income, expenses, and mileage from day one. That's it. Tax software, secure document sharing, scheduling, and your own books. Four tools, everything else is optional until you grow. One of the modules in the Tax Business Blueprint program walks through each of these software platforms with screen shares and setup guidance, so you're not just reading features lists on a website. You're seeing the software in action before you commit. If that's useful to you, MewSpring.com has a full program breakdown. I'm Jason Carr. Thanks for listening to the Mew Spring Minute.

SPEAKER_01 4:10

Thanks for listening to the Mew Spring Minute. Subscribe and leave a review so other future tax pros can find the show. The Mew Spring Minute is produced by Mew Spring LLC for educational and informational purposes only and does not constitute legal or tax advice. For guidance specific to your situation, consult a qualified professional. Mew Spring LLC is not a lapper.