15 Best Tax Software in 2023

15 Best Tax Software in 2023
Imed Bouchrika, Phd by Imed Bouchrika, Phd
Chief Data Scientist & Head of Content

Effective tax administration is a major pillar of revenue generation. With digital transformation permeating every aspect of businesses, it only makes sense that the tax management process must also shift from spreadsheets to digital systems that can capture the intricacies of local jurisdictions. This is where tax software comes in.

Tax software offers tools that automatically adjust entries based on local standards and delivers effective tax management. Aside from increasing tax compliance, the use of digital technologies in the public sector facilitates the collection of valuable data that can inform strategy. It benefits both the government and the taxpayers. When it comes to the digitization of tax administration, 92% of tax managers agree that the transformation is moving faster than expected (Deloitte, 2021).

To help you find a system that works well with your tax administration processes, this guide presents a list of the best tax software on the market. The key features of each platform are provided, as well as pricing information to aid tax preparers in making informed software purchasing decisions.

Tax Software Table of Contents

  1. Tax Software Statistics
  2. Tax Software Trends
  3. List of Tax Software

Tax Software Statistics

Digital tax administration has recently been transformed with the application of artificial intelligence (AI), the Internet of Things (IoT), cloud computing, and blockchain technology, among others. According to a survey conducted by the OECD (2021):

  • In 2020, digital contacts in tax administration increased by 30%.
  • 1.3 billion contacts in 2020 used online taxpayer accounts.
  • 30 million contacts engaged with chatbots in 2020.

The tax software statistics in the report also revealed that governments have also been increasing the use of public financial management systems to streamline workflows and boost productivity.

  • 80% of tax administrations use data analytics tools
  • 75% of tax administration have machine learning capabilities.
  • 50% of tax administration have digital assistant tools, most notably chatbots.

Source: Tax Operations Transformations Trends Survey by Deloitte 2021

Aside from pursuing efficiency and productivity through automation, businesses are seeking more strategic counsel from tax. To accelerate sustainable transformation, companies are exploring uncharted territories in tax administration. Among them, 65% see more effective tax administration as a potential source of deeper advisory support, while 49% expect that it would help in supply chain restructuring (Deloitte, 2021). In fact, heads of tax from global organizations are saying that digital tax transformation will have a moderate (55%) to high impact (37%) on tax operations and resources (Deloitte, 2021).

online tax payer accounts

Tax software statistics also show that when it comes to the adoption of tax software, 78% of users prefer having the platform in their own network rather than cloud-based. Only 22% use tax software from the vendor’s server. Among the top benefits identified by tax software users are the comprehensiveness in the number of forms (54.2%), ease of use (50.3%), and accuracy (49.9%). On the other hand, major pain points include price (54.7%), tax research (33.1%), and lack of support service (14.8%) (Journal of Accountancy, 2022).

Source: PWC Paying Taxes 2020

Tax Software Trends

The transition into digital tax collection has delivered unprecedented benefits but also challenges most notably in the area of security. The following tax software trends are set to influence how software products will be designed and used by tax preparers.

  • Enhanced Cybersecurity. As digital acceleration continues, hackers and cybercrime groups will take every opportunity to scour for highly-valuable data. Personal information stolen from tax returns is a gold mine for hackers as they can use this data for financial and medical theft, and also for various forms of cyber attack. To prevent this, the Internal Revenue Service (IRS) issues the six-digit identity protection pin. In addition, software users are provided guidelines on best practices to avoid these types of attacks and become aware of vulnerabilities.
  • Increased Tax Relief. Efficient tax collection leads to increased revenues. Technology aids governments in tax collections and initiatives like e-filing and electronic property enumeration reduces corruption and expands the tax base. Tax relief is important for taxpayers, but the system needs to be efficient and robust to be able to implement this. Using the best tax software, the enacted income tax rate cuts are efficiently affected by all concerned businesses and citizens.
  • Adjusting Rules for Remote Work. Transitioning to remote work during the pandemic has a significant impact on the filing of taxes. As such it is driving some of the most critical tax software trends today. There are rules that govern the taxation of people working remotely for in-state, and a separate set of rules for those working for out-of state employers. Employees face a potential double taxation scenario as most states assert the right to tax on the basis of physical presence. Tax software will play a crucial role as hybrid work becomes a permanent employee option. Convenience rule, reciprocal agreement, and reverse credit are just some of the guidelines that will be integrated in tax software systems to effectively manage taxation in remote work.
  • Tax Sofware To Support Strategy. Tax administration is accelerating its shift to digital platforms. Top executives are realizing that to become more proactive at delivering strategic insights to the business, there should be an increased emphasis on tax technology strategy (Bassey et al, 2022). In 2020, the average time spent on tax compliance ranged from 162 to 274 hours per year. Europe and Central Asia regions have made the most notable progress in reducing tax compliance time, from 473 hours in 2006 to 225 hours in 2020 (PWC, 2020). Using tax software can significantly reduce the time spent on tax preparation. The use of electronic invoicing, to cite an example, boosts not just productivity but also the timely collection of accounts receivables.

tax managers using software

Implementing a tax technology strategy, however, is not as simple as adopting new technology. In the area of tax administration, organizations that maintain data in multiple systems will be challenged by inconsistencies in data. Another possible hurdle is the lack of tax function in current ERP systems, as well as the difference in compliance and standards among jurisdictions. As such, it is important to thoroughly assess prospective tax systems and choose one that can keep up with industry standards and align with your company’s goals.

Source: Tax Operations Transformations Trends Survey by Deloitte 2021

List of Tax Software Solutions

1. TaxDome

TaxDome-dashboard

TaxDome is an all-in-one platform for the management of tax, bookkeeping, and accounting. It manages clients, documents, jobs, and teams. TaxDome reduces operating costs by replacing your accounting tech stack with a single platform that takes care of workflow automation, document management, and integrated tax CRM.

For both internal and external clients, TaxDome provides an outstanding user experience. For clients, the platform facilitates secure payments, secure sharing of documents, and secure communication. TaxDome supports seven languages.

TaxDome Key Features

  • Custom-branded client portal and mobile app
  • Fully customizable automated workflow
  • Imports contacts from other software for client management
  • Tax program integrations allow for printing directly from the client’s software
  • Syncs client files with TaxDome Drive
  • Unlimited e-signatures included in every subscription
  • Shared inbox allows teams to see client communications in one place

Price

TaxDome plans start at $25/month for one user.

2. Mango Practice Management

Mango-practice-management-dashboard

Mango Practice Management offers a suite of tools that makes it easy to run your business. It tracks time spent on client services, streamlines workflows and task management, and helps you secure file sharing and e-signature collection.

As a fully integrated platform, Mango Practice Management covers project management, document management, time and billing, reporting and analytics, and integrations in one platform. In addition, Mango Practice Management easily integrates with the business tools that matter to your business.

Mango Practice Management Key Features

  • Branded invoicing
  • Education and CPE tracking
  • Shortcut data entry codes
  • Powerful time and billing tools
  • Simple payment processing to facilitate fast collection
  • Accurate time-tracking tools ensure productivity
  • Reporting and analytics dashboard

Price

Mango Practice Management plans start at $35/user/month.

3. Taxfiler

taxfiler-dashboard

Taxfiler is an accountancy and tax software that offers tools for accounts preparation, corporation tax, personal tax, partnership tax, VAT filing, and for filing tax for trusts and estates. It also has a deadline diary that organizes all tax filing activities.

The VAT Filers helps clients comply with the requirements of the Making Tax Digital initiative in the UK. Taxfiler connects seamlessly with other popular bookkeeping systems while keeping tax returns in one place. Taxfiler delivers complete compliance with flexible solutions.

Taxfiler Key Features

  • Simplifies the preparation of tax returns and supplementary forms
  • Accelerates preparation of final accounts from the trial balance stage
  • Completes the correct forms for any accounting period
  • Enter details of partnership income with a straightforward interface.
  • Supports various trust types, including charitable and non-resident trusts
  • Connects with QuickBooks Online, Sage, Xero FreeAgent, and Kashflow
  • Comes with a Deadline Diary tool for managing the filing of taxes.

Price

Taxfiler starts at £10/month for a single user with a maximum of 10 clients.

4. Avii

Avii-dashboard

Avii is a software solution that provides a unified workspace for accounting teams. It offers powerful tools for automation that connect workflows between clients and practitioners that improve relationships and deliverables.

The cohesive suite of solutions offered by Avii enhances accounting practice management for tax, advisory, audit, compliance, and management consulting organizations. The Avii platform unifies all client interactions, interconnects all accounting systems and workspace, and automates processes.

Avii Key Features

  • Automates processes and workflows
  • Collects and analyzes data
  • Manages projects and people from a central platform
  • Improves the experience of staff and clients
  • Interconnects document and data management
  • Fosters collaboration by providing easy access to real-time data
  • Automations that create efficiencies

Price

By quote

5. Digita Professional Suite

Digita-Professional-dashboard

Digita Professional Suite is a fully integrated software for accountants that offers tax and accounting solutions. It links software modules around a central database and manages personal tax, corporation tax, accounts production, practice management, and company secretarial solutions.

As a scalable compliance software, Digita Professional Suite manages the compliance process and enables organizations to save time. It offers cost-effective tax and accounting packages through the Efficiency Packs that provide flexibility to accounting teams.

Digita Professional Suite Key Features

  • Manages personal, business, and trust tax compliance process
  • Automates reporting and delivers timely information
  • Simplifies complex corporate tax preparation process
  • Offers a hosting solution for your virtual office
  • Provides a comprehensive view of client data and staff workloads
  • Product packages allow firms to select products for current requirements.
  • Offers both standard and advanced practice management solutions

Price

Digita Professional Suite starts at £45/month for 10 desktop-based user package.

6. Taxaroo

Taxaroo-dashboard

Taxaroo is an online accounting and tax practice management software that offers tools for boosting operational efficiency. The client organizers of Taxaroo make it easy to collect, manage, prepare, and share documents. It also offers a secure document portal.

Clients can easily sign documents using the IRS-compliant electronic signature functionality, and make electronic payments. Taxaroo keeps clients connected through integrated chat, text messaging, and video calls.

Taxaroo Key Features

  • Customizable client organizer
  • Secure document portal
  • Integrated chat, texting, and video
  • Eliminates redundant data entry through import and export integrations
  • Client portal in English and Spanish
  • Tracks the growth of your business and collects client ratings
  • Supports Stripe integration to allow for the easy sending of invoices and payments

Price

Taxaroo plans start at $99/month. For those interested, the vendor offers a 14-day free trial.

7. ATOM

ATOM-tax-office-manager-dashboard

Automated Tax Office Manager (ATOM) is a practice management software solution for tax and accounting offices that incorporates systems developed by leading tax professionals. As such, ATOM’s suite of tools can guarantee flexibility, scalability, and adaptability.

As an all-inclusive app for tax and accounting, ATOM helps firms save on practice management costs by using automation in document management. Task assignments are in a central location, which ensures that projects are completed on time.

Automated Tax Office Manager Key Features

  • Reduces learning curve and training costs
  • Uses historical data to improve tax utilization
  • Automatically updates client data
  • Tracks client balance and generates revenue breakdown
  • Allows clients and returning clients to check-in quickly
  • Multiple office integration allows for access to real-time data
  • Generates checklists for tax filing deadlines

Price

ATOM plans start at $149/month or $1,499/year.

8. Once Accounting

BaCo-Tech_Once-Acct-dashboard

Once Accounting, formerly BaCo Tech, is a software solution that unifies all accounting data to optimize tax preparation and planning. It has an intuitive year-round tax planning feature and automates tax preparation.

This platform provides real-time alerts and catches client data entry issues and makes clients smarter with proactive tools. Making book-to-tax adjustments eliminates repetitive annual adjustments and creates efficiencies.

Once Accounting Key Features

  • Real-time tax planning
  • Eliminates repetitive coordination tasks
  • Provides a data-backed understanding of where clients stand
  • Equipped with engagement risk analysis
  • Eliminates manual data entry to improve accuracy
  • Centralized client data
  • Spreads out the tax planning process
  • Eliminates uncoordinated adjustments
  • Increases capacity and eliminates the busy season

Price

By quote

9. Corvee Tax Planning

Corvee-tax-dashboard

Corvee Tax Planning is an accounting software solution that includes tools for multi-entity planning and calculates estimated task savings at the federal and state level. This platform uses a questionnaire to develop strategies for clients. It also comes with detailed information and requirements from the Internal Revenue Service (IRS) as well as generates transparent calculations.

The tax return scanning tool of Corvee Tax Planning collects the tax information of each client for the past year. It automatically adjusts tax calculations and uses six different calculations for tax accuracy. Corvee Tax Planning is used by accountants, tax advisors, and tax attorneys.

Corvee Tax Planning Key Features

  • Offers more than 1,500 strategies in 52 jurisdictions
  • Smart client questionnaires facilitate effective tax planning
  • Transparent calculations for every tax strategy recommendation
  • Generates professional deliverables with just one click
  • Performs analysis of prior, current, and future tax scenarios
  • Complies with customized tax planning strategy in ready-to-send pdf
  • In-app help and knowledge base

Price

By quote

10. Fyn

Fyn-dashboard

Fyn, formerly Bear Tax, is a tax software solution specifically designed to calculate the performance of crypto investments for tax reporting purposes. It is used by CPAs and accounting firms to compute crypto tax by using APIs. The Fyn platform performs digital asset accounting and is built for global enterprises.

Fyn easily integrates with your financial tools and workflows so you can gather all the data that you need for tax and accounting processes. It offers solutions for internal teams and accounting firms, and also for custodial and treasury assets.

Fyn Key Features

  • Mobile-first, localized platform
  • Trace any taxable transaction using the comprehensive auditable CSV
  • Automated forms and easy report generation
  • Automatically generates data needed for tax
  • Provides tax APIs for every Web3 strategy
  • Flexible options through multiple commercial models
  • Data remains secure through the use of OAuth or API keys

Price

Fyn can be used to import transactions, calculate gain/loss, and generate summaries of gain/loss for free. However, the platform requires a subscription should you decide to download a detailed CSV for tax reporting or capital gains.

11. OIC Tax Planner

OIC-tax-planner-Dashboard

OIC Tax Planner is a tax resolution software that provides the required tax representation forms and current IRS Offer in Compromise regulations in one platform. It is the ideal software for handling Offer in Compromise, Currently Non-Collectible, Installment Agreement, Spousal Defense, CDP, and other IRS collection cases.

The network edition and the online edition are the two solutions offered by OIC Tax Planner. Both allow your accounting team to manage multiple accounts and businesses and deliver complete tax resolutions to clients.

OIC Tax Planner Key Features

  • Comes with automatic attachments for overflow data, data flow between forms, and more
  • Generates form calculations based on IRS standards
  • Updates forms and data tables based on IRS revisions
  • Manages forms and data for multiple businesses
  • Auto-populates allowable expense fields as guided by IRS instructions and local standards
  • Comes with a Q-test module for pre-screening clients
  • Securely backs up or exports client data

Price

OIC Tax Planner is currently priced at $249

12. SeQwens

SeQwens-Dashboard

SeQwens is a practice management solution that simplifies tax and accounting processes through automation. It offers a wide range of tools, including a secure document portal, online client organizers, and other tools that enable tax and accounting teams to grow.

The SeQwens platform facilitates a multi-office management portal and has an integrated customer management tool that captures leads and keeps customers close. Through the customizable client portal, clients can access all their forms, emails, and invoices in one place.

SeQwens Key Features

  • Provides every client with a protected client portal account
  • Equipped with easy-to-use workflow automation tools
  • Offers robust document management options that facilitate secure file sharing
  • Supports e-signatures from any device
  • Has a multi-office management portal for easy team management
  • Organizes projects with tags and statuses
  • Automatically tracks all customer communications

Price

By quote

13. Taxjoy

Taxjoy Dashboard

Taxjoy is a messaging platform built for tax professionals in order to secure and streamline communication with clients. This tax software facilitates easy and secure document sharing for seamless tax preparation.

As a collaborative tax management tool, Taxjoy includes tools for task and questionnaire management, insights, practice management, and payments. Client data is fully encrypted using 256-bit SSL encryption, ensuring secure communication at all times.

Taxjoy Key Features

  • Encrypts all transmitted data using 256-bit SSL
  • Uses highly secure data centers with multiple layers of security
  • Facilitates seamless practice management
  • Ensures constant communication with clients
  • Provides insights as collected from reports on client interactions
  • Offers unique user experience to build lasting client relationships
  • Enables in-platform collaboration with clients and colleagues

Price

Taxjoy plans start at $45/user/month. However, the vendor also provides a free plan for small businesses or freelancers that handle only up to 20 entities per month.

14. Aeco TaxTechnology

Aeco-Dashboard

Aeco Tax Technology is a tax software that provides digital transformation services by analyzing your current IT strategy and providing a digital roadmap for your strategy. It automates repetitive tasks, facilitates change management, and provides integrated solutions.

By helping tax and accounting firms build an integrated solution, Aeco Tax Technology assists in streamlining processes and automating workflows. In addition, it helps in vendor selection to ensure that only the most applicable systems are built into the unique work processes of tax and accounting teams.

Aeco Tax Technology Key Features

  • Automates repetitive tasks to boost productivity
  • Integrates with existing solutions
  • Provides advice on available technology tools
  • Facilitates deployment by providing seminars and training courses
  • Enables businesses to digitize tax and legal advice to provide fast service
  • Comes with a Tax API to perform optimizations and calculations
  • Includes tools for custom graphs, google docs editor, conditional logic, and more
  • Has a form builder that facilitates the easy creation of decision trees

Price

By quote

15. TaxWorkFlow

Taxworkflow-dashboard

TaxWorkFlow is a premium tax software and practice management solution that simplifies the tax preparation process by creating streamlined workflows. It allows users to customize tasks at the universal or individual client level and ensures that a full tax return is completed on time.

The robust system of TaxWorkFlow alerts the user of errors and other issues. The document management system facilitates the easy organization and sharing of documents while the integrated email system keeps everyone in the loop.

TaxWorkFlow Key Features

  • Designed, developed, and tested by CPAs in collaboration with IT experts
  • Builds comprehensive and customizable workflows
  • Serves as a single platform for multiple applications
  • Improves workflow to boost productivity and increase efficiency
  • Has an integrated and automated template-driven email system
  • Can completely integrate with calendar providers and email hosting
  • Offers workflow rules to ensure timely and precise communication with clients

Price

TaxWorkFlow is only available through an annual fee of $1,500.

Boost Practice Management Using Tax Software

The best tax software for tax preparers significantly reduces the time spent on tax administration and preparation. In addition, it is able to collect data that can support and accelerate sustainable transformation for your practice. However, to increase citizen engagement, tax software should be able to provide a seamless experience. Remember, the adoption of advanced technologies in the area of tax administration requires a deep understanding of context, stakeholders, and technology to gain its benefits.

In addition, it is important to note that investing in this type of software alone may not be enough to deliver your expected results. Tax software is just one of the many types of government software that help accelerate the digitization of public sector processes. As such, to reap the rewards that digital transformation has to offer, it is crucial to build a solid tech ecosystem for your practice and come up with iron-clad adoption strategies and policies.

 

References:

  1. Bassey, E., Mulligan, E., and Ojo, A. (2022). A conceptual framework for digital tax administration – A systematic review. Government Information Quarterly. https://doi.org/10.1016/j.giq.2022.101754
  2. Bonner, P. (2022). 2022 tax software survey. Journal of Accountancy. https://www.journalofaccountancy.com/issues/2022/aug/2022-tax-software-survey.html
  3. OECD Center for Tax Policy and Administration (2021). COVID-19 accelerated the digital transformation of tax administrations. https://www.oecd.org/ctp/administration/covid-19-accelerated-the-digital-transformation-of-tax-administrations.htm
  4. Deloitte (2021). Tax transformation trends survey. https://www2.deloitte.com/global/en/pages/tax/articles/tax-transformation-trends-study.html
  5. PwC (2020). Paying Taxes 2020. https://www.pwc.com/gx/en/paying-taxes/pdf/pwc-paying-taxes-2020.pdf

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