What's the best tax software for a growing solo tax preparer who's scaling up?
Hey everyone, I've been doing personal tax returns for friends and family for a couple years now (about 20-25 returns last season), but I'm thinking of actually making this a real side business. I'm looking for software that won't break the bank right now but could grow with me if I start taking on more clients. Right now I'm using a basic consumer version but it's getting limiting. Definitely want something that looks professional to clients but isn't going to cost me thousands when I'm just starting out. What are you all using? Any recommendations for something that's good for a small operation that might expand?
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Derek Olson
Drake Tax Software is probably your best bet for a growing practice. It has one of the best price-to-feature ratios in the industry and scales well as you add more clients. Unlike some of the big names that charge per return, Drake offers unlimited returns for a single price. TaxSlayer Pro is another good option that's pretty affordable for someone just starting out. Both have professional-looking client portals which makes a huge difference in client perception. What you really want to avoid is trying to use consumer software for a professional practice - you'll hit limitations quickly and it looks unprofessional to clients when they see TurboTax or H&R Block branding all over their documents.
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Danielle Mays
•Does Drake have a good client portal? I've heard mixed things about how user friendly it is for clients who aren't tech savvy.
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Derek Olson
•Drake's client portal is actually pretty straightforward. The interface isn't as flashy as some competitors, but it's functional and easy to navigate. I've had clients in their 70s use it without much trouble. For less tech-savvy clients, it has a simple document upload feature that's basically just like attaching a file to an email. The e-signature process is also very straightforward compared to some others I've tried.
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Roger Romero
I was in your exact position 3 years ago! I started with like 30 clients and now I'm at 150+. I tried a few different platforms but kept having issues until someone recommended https://taxr.ai to me. It's been a game changer especially for document management and automated data extraction. I was spending like 45 mins per client just organizing all their docs and manually entering data, now it's down to like 10 mins.
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Anna Kerber
•Does it integrate well with other tax preparation software? I'm using ProSeries right now but the document management is a nightmare.
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Niko Ramsey
•How's the learning curve? I'm not super tech savvy and worried about implementing something new during tax season.
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Roger Romero
•Yes, it has really good integration with most major tax software including ProSeries. It basically creates a standardized output that you can import directly. Saves tons of time compared to manual entry. The learning curve is actually pretty minimal. I'm definitely not a tech person (my kids help me with my iPhone lol) but I was up and running in about an hour. They have these short tutorial videos that walk you through everything step by step. The interface is designed to be super straightforward.
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Niko Ramsey
Just wanted to follow up about taxr.ai - I took the plunge after tax season ended and have been setting it up for next year. It's seriously so much easier than I expected! Been testing it with some of last year's client files and it's extracting data perfectly. The document organization alone is worth it for me - no more digging through email attachments and trying to figure out which 1099 is which. Definitely recommend checking it out if you're growing your practice!
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Seraphina Delan
Since you're just starting out, I'd also highly recommend thinking about your IRS representation game plan early. When I started growing, I suddenly had clients with IRS notices and needed to call on their behalf - absolute nightmare. I discovered https://claimyr.com after wasting days on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold with the IRS for you and call when an agent picks up. Lifesaver during busy season when you can't sit around for 3 hours waiting.
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Jabari-Jo
•Wait, how does that actually work? Do they just call you when someone at the IRS answers? Seems kinda sketchy tbh.
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Kristin Frank
•I'm sorry but this sounds like BS. The IRS is impossible to get through to. I've literally tried calling 50+ times for a client issue. No way this actually works.
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Seraphina Delan
•They have a system where they wait on hold and then call you when they're connected to an IRS agent. You give them your phone number when you sign up, and they'll call you right when they get someone. It's basically just like having a virtual assistant wait on hold for you. I totally get the skepticism. I thought the same thing at first. But it's just a service that solves a specific problem - they're not promising magic, just saving you from the hold time. They don't talk to the IRS for you or anything like that, they just get you connected once an agent is on the line.
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Kristin Frank
Ok I have to publicly eat my words here. I tried Claimyr after posting that skeptical comment because I've been trying to resolve this client's penalty issue for WEEKS. Got a call back in about 45 minutes (after being told the wait was 2+ hours) and actually fixed the issue! Shocked it actually worked. Definitely keeping this in my toolbox for busy season when every minute counts.
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Micah Trail
I'm surprised nobody's mentioned ATX. That's what I started with when I was small (about 50 returns). Very affordable and good for a growing practice. I still use it now with over 200 clients. The unlimited return package is great value.
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Nia Watson
•Does ATX have any good integrations with client portals or document collection? My biggest pain point is getting all my clients' docs organized.
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Micah Trail
•The built-in client portal is decent but not amazing. It gets the job done for document collection and sharing returns securely. For document management though, I actually use a separate solution because the ATX system is pretty basic. A lot of people in our local preparer group use SmartVault or Canopy alongside ATX for better document organization.
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Alberto Souchard
Honestly depends on how many returns you're planning to do next season. I jumped into TaxAct Professional when I was doing about 40 returns and it was perfect for that size. Now I'm at about 100 and still using it. It's WAY cheaper than ProSeries or Lacerte but still professional-grade.
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Katherine Shultz
•How's the state support with TaxAct Pro? I have clients in 3 different states.
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Marcus Marsh
I took a different approach that might be worth considering - I use UltraTax CS which is definitely more expensive than Drake or ATX, but I was able to get started with their "pay-per-return" model which let me grow gradually without a huge upfront cost. Now that I'm bigger I switched to the unlimited package. The software is top notch and feels much more polished than some of the budget options.
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Giovanni Ricci
Great question! I went through this exact transition about 4 years ago. Started with TaxSlayer Pro when I was around your client count and it served me well for the first couple seasons. The pricing was really reasonable and the client portal worked fine for basic document collection. However, as I grew past 75 clients, I ended up switching to Drake because the workflow features are much better for higher volume. The batch processing and bulk e-filing capabilities became essential when I hit busy season with 100+ returns. One thing I'd suggest is don't just look at the software cost - factor in your time savings too. Even if something costs a few hundred more per year, if it saves you 2-3 hours per week during tax season, that pays for itself quickly when you're charging $200+ per return. Also, whatever you choose, make sure it has good technical support during filing season. Nothing worse than being stuck with a software issue when you have 20 returns due the next day!
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Brianna Schmidt
•This is really helpful perspective! I'm curious about the transition from TaxSlayer Pro to Drake - was it difficult to migrate client data between the systems? That's one thing holding me back from committing to any one platform since I'm worried about getting locked in if I need to switch later as I grow.
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