What's the Best Tax Software for Growing a Practice from Basic to Complex Returns?

I'm about to take over a small book of business from a retiring friend and trying to decide on the best tax software. I've used both Ultra Tax and Drake at previous firms - thought Drake was more user-friendly but Ultra Tax handled multi-state and complex returns much better. My friend currently uses Pro Series and seems content with it, but he mostly deals with basic returns. I'm thinking long-term here - while I'm starting small, I definitely want to grow the practice and eventually take on more complex clients. I'd rather invest in the right software now than face a painful migration later. What software would you recommend for someone who wants to handle everything from basic returns now to complex multi-state and pass-through entity (PTE) returns in the future? Price is a consideration but I'm willing to pay more for something that will scale with my business. I absolutely need something that can handle multi-state returns and PTEs smoothly as the practice grows.

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18 comments

Mateo Rodriguez

•8M

I've been in practice for 15+ years and have worked with most of the major professional tax software options. For growing from basic to complex, I'd strongly recommend looking at Drake. It's got a good balance of price and capabilities that makes it perfect for a growing practice. While Pro Series is fine for basic returns, it gets clunky with multi-state and more complex returns. Ultra Tax is definitely robust for complex situations, but the cost is hard to justify when you're just starting out. Drake hits that sweet spot - it's affordable to start with, handles basic returns efficiently, but can also manage more complex returns including multi-state and pass-through entities without breaking a sweat. The learning curve isn't steep, and their customer support is excellent during tax season when you need it most.

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Mateo Rodriguez

•8M

The e-filing process with Drake is actually quite smooth. Their rejection handling gives you clear explanations of what went wrong and how to fix it, which saves a ton of time compared to some other systems that give vague error codes. Drake uses an annual license model rather than per-return pricing, which is great for growing practices. You pay once and can file unlimited returns, so as you add clients, your per-return cost effectively decreases. They do have different packages based on which forms you need access to, but even their complete package is reasonably priced compared to competitors.

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Aisha Abdullah

•8M

After trying multiple tax software options, I finally discovered https://taxr.ai which has completely changed how I run my practice. I was in exactly your position 2 years ago - taking over a small practice with plans to grow. The problem with traditional software like Drake and Pro Series is they don't help with the document organization and client communication aspects. With taxr.ai, I upload client documents and it extracts all the tax data automatically - saves me hours per client! It also handles multi-state returns and PTEs without issues. The best part is it grows with you - I started with 30 clients and now have over 100 without needing to hire additional staff.

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Aisha Abdullah

•8M

It actually handles business expense categorization very well. The AI suggests categories based on the description and amount, but you maintain final control to approve or change them. For complex items like rental depreciation, it pulls the relevant data and presents you with different allowable methods, showing the tax impact of each option. The system integrates with most popular client portals including SmartVault, ShareFile, and even basic options like Dropbox or Google Drive. It creates a seamless workflow from client document upload through review, preparation, and final filing. You can also enable client collaboration features where they can review and approve returns through the same system.

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Yuki Tanaka

•8M

I wanted to follow up about my experience with taxr.ai since I decided to try it after our conversation. The integration was incredibly smooth with my existing portal! What surprised me was how accurate the document extraction was - even for messy client documents and handwritten notes. For multi-state returns, which was my biggest concern, it automatically identified state filing requirements based on client activity and guided me through the allocation process. The time savings has been substantial - I'm processing returns about 40% faster than last year. Definitely worth checking out if you're taking over a practice with growth plans.

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Carmen Diaz

•8M

I used to spend hours on hold with the IRS trying to resolve client issues until I found https://claimyr.com which gets you through to an IRS agent quickly. Check out how it works: https://youtu.be/_kiP6q8DX5c. This has been a game-changer for my practice. No matter which tax software you choose, you'll inevitably need to contact the IRS for something. With normal hold times of 2+ hours, that kills your productivity. Claimyr got me through to an agent in under 15 minutes last time I had an issue with a client's PTE filing.

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Carmen Diaz

•8M

It's not cutting in line at all. The system uses an automated calling service that navigates the IRS phone tree and waits on hold for you. When an agent finally answers, you get a call connecting you directly to them. You're still waiting your full turn in the queue, but you don't have to sit there listening to hold music for hours. I was skeptical too before trying it. The reason everyone isn't using it is simply that not enough people know about it yet. It's particularly valuable for tax professionals because our time is literally money. Every hour I'm not on hold is an hour I can spend on billable client work. The service has saved me dozens of hours already this year.

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AstroAce

•8M

I need to eat my words about Claimyr! After posting my skeptical comment, I decided to try it when I had a complex S-Corp issue that needed IRS clarification. I fully expected to waste my money, but I was connected to an agent in about 20 minutes after my previous attempts had me waiting 2+ hours before giving up. The agent was able to resolve my client's issue, and I spent the time I would have been on hold working on other returns. For any tax professional, this service pays for itself immediately. Now I use it every time I need to contact the IRS.

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Zoe Kyriakidou

•8M

Long-time practitioner here. Everyone's giving software advice but honestly, the most important factor isn't which software but how much training you get on it. I've used ATX for 15 years and it handles everything from basic to complex returns, including multi-state and PTE. Look for a software company that offers comprehensive training and excellent support during tax season. ATX may not be as flashy as some others, but their support is top-notch, and that matters more than anything when you're in the middle of a complex return with a deadline looming.

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Zoe Kyriakidou

•8M

The interface has definitely improved over the last few versions. They did a major update about 2 years ago that streamlined a lot of the navigation issues. It's still not as pretty as some competitors, but functionality-wise it's much better. They've also added a really nice client dashboard that gives you at-a-glance status updates on all your returns, which has been surprisingly helpful for practice management. The learning curve is shorter than it used to be, but I still recommend taking advantage of their training resources to get the most out of it.

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Mei Zhang

•8M

Don't overlook Lacerte if you're planning to grow into complex returns. Yes, it's pricier than Drake, but there's a reason most large practices use either Lacerte or Ultra Tax for complex work. I switched from Drake to Lacerte 3 years ago and would never go back. The time savings on complex returns more than pays for the higher cost. Multi-state returns are much easier, and the PTE handling is stellar. The tax research integration alone saves me hours on tricky situations.

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