Thinking about how to start a tax preparation business, but not sure what tools you’ll need? Many first-time tax pros struggle to figure out which software and services are worth the cost. The right setup can save time, reduce errors, and help you stay compliant.
Today, we’re taking a closer look at the core tools, platforms, and features that support accuracy, security, and growth.
Core Software for Tax Business Professionals
To run a tax business that’s both efficient and reliable, you’ll need strong software that handles more than just filing returns. There are three standout names that many tax professionals use today:
- Drake Software: For reporting and built-in tools
- TaxWise Software: For ease of use and team support
- CrossLink Tax Software: For high-volume filing
Drake Software for Reporting and Built-In Tools
Drake Software is well known for its strong reporting features. It works well for both new and experienced preparers. The system includes built-in tools for:
- E-filing
- Document management
- Basic audit assistance
It supports quick input, which helps move returns faster during tax season. Many preparers like the way it handles bank product integration and its customer support.
TaxWise Software for Ease of Use and Team Support
TaxWise Software is a good fit for preparers who want a simple layout. It’s often used in offices with more than one user. This makes it easier for a team to manage multiple clients at once.
The software has options for both desktop and cloud-based access. It helps with return accuracy and reduces time spent checking for basic errors.
CrossLink Tax Software for High-Volume Filing
CrossLink Tax Software is built for high-traffic offices. It works well for businesses that expect to handle a lot of returns each season.
The software includes marketing tools, client data tracking, and remote signature support. It can speed up the filing process without losing track of each client’s return.
E-Filing, Client Portals, and Security Tools for Tax Preparation
Running a tax business means handling sensitive information every day. To keep everything safe and make your service more professional, there are three tools you should have in place from the start:
- A system for e-filing that’s fast and accurate
- A secure client portal for document sharing
- Security tools to protect your data and communications
A System for E-Filing That’s Fast and Accurate
Most clients expect their tax returns to be filed electronically. E-filing is quicker than paper returns and helps reduce mistakes.
Many tax software programs include e-filing features, so you won’t need a separate tool. Look for one that confirms when returns are accepted and flags any problems right away.
A Secure Client Portal for Document Sharing
Clients don’t want to drop off paperwork in person. A secure client portal lets them upload tax forms, IDs, and other documents without using email.
It keeps things organized and cuts back on time spent chasing paperwork. The best portals are built into your tax software or can be added as a low-cost service.
Security Tools to Protect Your Data and Communications
Hackers often target small businesses, and tax firms are no exception. You’ll need tools that keep data encrypted and access limited.
Two-factor login, password protection, and secure backups are a must. Some software for tax business already includes these features, while others let you add them on.
Launching a Tax Business: Tools for Business Management and Organization
Keeping track of your business income and expenses is just as important as filing your clients’ taxes. A tool like QuickBooks or a similar small business accounting platform can help.
These programs let you send invoices, accept payments, and log business expenses in one place. You can run reports that show how your business is doing and help you prepare your own return.
Busy seasons can get out of hand without a way to schedule meetings. Tools like Calendly or Square Appointments let clients book time with you based on your availability.
Some of these tools even send reminders so clients show up prepared. You’ll waste less time confirming appointments and answering calls.
Marketing and Branding Platforms
Clients often search online before they call. Having a basic site with your services, contact info, and business hours makes a big difference. Website builders like Wix or Squarespace can get you up and running fast. A simple layout with a clean logo and mobile-friendly design works best.
You don’t need a full design team. Tools like Canva help you create flyers, business cards, and social posts with a consistent look. This helps your business feel more professional, even if you’re just getting started.
Email tools like Mailchimp let you share tax tips, updates, or deadlines with clients. Social platforms help people remember your name and refer others to your service. A steady presence during and after tax season can help you grow your client list without spending a lot.
Support Services: Tax Audit Defense and Add-On Offerings
No one wants to hear from the IRS. But when they do, having audit support already included can take away some of that fear. Tax audit defense gives your clients help if they get a notice or are asked to send more details.
Some software providers offer this as an add-on you can bundle with your regular services.
Tax-related identity theft has become more common. Some clients worry about their personal data being used to file fake returns. Offering access to protection or recovery tools can be a strong selling point. It shows you care about their security even after the return is filed.
Little extras can make a big difference. Things like year-round phone support, W-4 help, or prior-year return reviews can help clients feel supported.
Start a Tax Preparation Business
To start a tax preparation business that runs smoothly, you’ll need more than tax knowledge.
At STS 1 Stop, we work closely with tax preparers and small business owners to help them start, brand, and grow their businesses. Our tax business solutions are among the fastest growing, offering software co-branding, service bureau support, and training. Partners trust us for our experience, results, and personal approach.
Get in touch today to find out how we can help with your business!