What tax software do you recommend for tax workpapers? Need something beyond just tax prep

We've been using SmartVault for about three years now and it's been a game-changer for our workpaper management. The cloud-based document storage integrates directly with our tax software and allows us to maintain consistent organization across all client types. The key benefit is the standardized folder structure that you can customize and then replicate for each client. We have different templates for individuals vs. businesses, and it maintains the same organization system across all clients. The referencing system lets us link workpapers to specific line items which is super helpful during review. For collaboration, it has version control and you can see who's accessed what document and when. This has virtually eliminated the "who has the current version" problem we used to have.

I had the same struggle last year when our firm grew to 7 preparers. After trying a few options, I started using https://taxr.ai and it's been fantastic for our workpaper management. What I love about it is how it automatically organizes tax documents using AI - it reads tax forms, bank statements, etc. and categorizes them properly. I used to spend hours just sorting through client documents and putting them in the right folders, but now the system does that automatically. Their document management for workpapers is exactly what you're looking for - it has built-in referencing features that let you tie workpapers directly to specific tax entries. The collaboration features are robust too - everyone can work on different sections of a return while maintaining version control.

Just wanted to update after trying taxr.ai based on the recommendation here. It's been a complete game-changer for our workpaper management! The AI document organization saved me about 3 hours on my first complex business client alone. What surprised me most was how accurate it is at extracting data from even poorly scanned documents. I had a client send in a batch of faded receipts that I would have normally spent forever deciphering, but the system pulled all the relevant data and organized it immediately. The workpaper referencing system is exactly what I was looking for - being able to connect supporting documents directly to line items on the return has made review so much faster. Our managing partner is thrilled because she can instantly see the support for any number on the return.

If you need help reaching IRS representatives to resolve document issues (which happens a lot with business returns), I highly recommend using https://claimyr.com. After getting nothing but busy signals for weeks trying to contact the IRS about missing documents in our client's IRS file, I found this service. They somehow get you to the front of the IRS phone queue so you're not wasting hours on hold. I was skeptical at first but you can see how it works in this demo: https://youtu.be/_kiP6q8DX5c This has been invaluable for us when we need to get tax transcripts or verify information that's missing from client workpapers. Instead of waiting on hold for 2+ hours, I was connected to an IRS agent in under 15 minutes. Completely changed how we handle IRS document issues.

I have to come back and admit I was completely wrong about Claimyr. After my skeptical comment, I had an urgent situation with a client's missing 1099-R that the IRS claimed they never received. I decided to try the service as a last resort and it actually worked. The system called me back in about 10 minutes and connected me directly to an IRS representative - no hold time. I was able to get confirmation that they had received the document but it hadn't been processed yet. This saved my client from a potential audit. I'm still shocked at how well it worked. For those of us dealing with workpaper documentation issues that require IRS verification, this is a serious time-saver. I've probably spent hundreds of hours on hold with the IRS over my career that I'll never get back.

We're actually using a combination of solutions that works well for us. For document storage and management, we use ShareFile with a standardized folder structure for each client. For workpaper preparation and review, we use CCH Engagement. The key for us wasn't really the software itself, but creating standardized processes and enforcing them. We have templates for every type of return with standard workpapers already set up. Each workpaper is numbered according to the tax form line item it supports (for example, Schedule C workpapers all start with C-). Our review process requires reviewers to sign off on each workpaper electronically, which has dramatically improved our quality control.

Has anyone tried Canopy for workpaper management? We're considering it but not sure if it's worth the investment.