Tax season for tax professionals means urgent filing requests, sending document and signature requests, generating multiple forms, and never-ending calculations. Luckily, all these tasks can be automated using tax tools. These tools will also remind you about upcoming deadlines so that you can start collecting the required information early on.
While there are multiple solutions available in the market, we have compiled a list of six top-rated tax software, in alphabetical order, based on verified software reviews to help you pick the right tool for your tax needs. Read more.
All of the tax tools listed in this article support tax management and accounting. Nevertheless, all the tools include features, such as client management and document management, and cater to the needs of tax professionals.
1. Drake Tax
Drake Tax, or Drake Software, helps simplify the process of tax planning and return preparation. It supports e-filing, allowing you to prepare and file federal and state tax returns digitally. Additionally, this tax software has various accounting features, such as bookkeeping, accounts payable, accounts receivable, and multi-location payroll. These features help you manage accounting and tax processes via a single interface.
Product features of interestTax preparation: Input, calculate, and generate tax returns by applying relevant tax codes and regulations. This feature typically includes tools for data entry, calculations, error-checking, and the creation of tax forms and reports, ensuring compliance with tax laws and regulations.
Reporting: Generate various financial and tax-related reports, such as income statements, tax liability reports, and income returns. These reports help analyze financial data and assess tax liabilities, deductions, credits, and more.
Password protection for documents: Add passwords to your documents to ensure only authorized individuals with the correct password can access, view, or modify the files. This feature helps add a layer of security to sensitive financial and tax-related files and documents, protecting them against data breaches.
Customer support options: Knowledge base, chat, email, and phone support.
Who should consider Drake Software?
Tax professionals or accountants working individually or out of a small accounting firm can use Drake Software. They will have easy access to all the financial data they need for accounting or tax preparation purposes without the need for manual data entry, reducing the risk of errors. This also ensures that the financial information used for tax preparation is accurate and consistent, which will reduce the likelihood of discrepancies and errors in tax returns.
To present the most up-to-date information, the product information below shows the latest real-time ratings, which may differ from the ratings values at the time this report's analysis was conducted, since new reviews may have been left in the meantime.
Trial/Free Version
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- Free Version
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Device compatibility
2. hellotax
hellotax automates the tax calculation, preparation, and filing processes for European sellers. It helps you register for and get a European Union Value Added Tax (EU VAT) number so that you can sell in European markets legally. This tax management tool comes with a team of dedicated account professionals who can help you understand your VAT needs and manage your tax filing.
Product features of interestOne-Stop-Shop (OSS) reporting: Remain compliant with EU VAT regulations by reporting your VAT liabilities for multiple EU countries through a single electronic portal. This feature streamlines VAT calculations, filings, and payments, simplifying cross-border tax compliance and reducing administrative burdens.
Automated data collection: Automatically import financial and transactional data from various sources such as bank accounts, accounting software, and other data repositories. It eliminates manual data entry, reduces errors, and accelerates data retrieval.
Payroll accounting: Automate payroll tasks, including direct deposits, tax withholding, and reporting, and manage employee records and benefits. It simplifies the process of payroll administration and reduces the risk of payroll-related errors and tax compliance issues.
Customer support options: Knowledge base and inquiries via an online form.
Who should consider hellotax?
If you're a tax professional managing taxes for an eCommerce business selling their products in European markets, you can use hellotax to register for a VAT number and file and report taxes. Since the tool gives you access to a dedicated team of account managers, you can consult with them to understand VAT processes and the overall process of managing taxes in the European market.
To present the most up-to-date information, the product information below shows the latest real-time ratings, which may differ from the ratings values at the time this report's analysis was conducted, since new reviews may have been left in the meantime.
Trial/Free Version
- Free Trial
- Free Version
Starting price
Device compatibility
/ Pro tip
Check the type of tax forms or IRS forms the tax tool helps generate and file. These forms can include 1040 (individual income tax return), 1120 (corporate tax return), and 1065 (partnership tax return).
3. MyTAXPrepOffice
MyTAXPrepOffice is a tax preparation software solution that is accessible via any device, including personal computer, Mac, tablet, or mobile device. The tool runs on any browser, making it accessible on any internet-connected device. This tax software comes with a client portal called MyTAXPortal that you can use to send and receive documents, send returns for review, and request signatures from clients. The tool uses TLS/SSL encryptionE-filing: Make filing taxes easier by electronically submitting your completed tax returns to tax authorities, eliminating the need for paper forms and mailing. This functionality often includes features for tracking the status of submitted returns and receiving refunds, making it a convenient and efficient way to fulfill tax obligations.
Individual returns: Allow individual taxpayers to prepare and file their personal income tax returns. It provides a user-friendly interface to input income, deductions, credits, and other relevant financial information.
Data security: Protect sensitive financial and personal information during transmission and storage using encryption techniques. It protects the confidentiality, integrity, and availability of sensitive tax-related data, safeguarding it from unauthorized access or breaches.
Customer support options: Knowledge base, chat, phone, and inquiries via an online form.
Who should consider MyTAXPrepOffice?
Tax professionals working individually or in small tax firms can benefit from MyTAXPrepOffice. Leveraging its client portal feature, they will be able to manage and prepare tax returns for their clients. The portal will foster collaboration and transparency between tax professionals and their clients and will simplify the exchange of sensitive financial information, enhancing the overall tax preparation experience.
To present the most up-to-date information, the product information below shows the latest real-time ratings, which may differ from the ratings values at the time this report's analysis was conducted, since new reviews may have been left in the meantime.
Trial/Free Version
- Free Trial
- Free Version
Starting price
Device compatibility
4. TaxCloud
TaxCloud helps eCommerce businesses stay compliant with sales tax in the US jurisdictions. It supports integration with multiple eCommerce platforms, including Shopify, WooCommerce, and Odoo. These integrations allow you to collect sales data in real time and calculate taxes on each transaction. This allows you to see when and where you owe sales tax.
Product features of interestReal-time sales tax calculation: Calculate the appropriate sales tax rate for each transaction based on the customer's location, the seller's location, and the type of product being sold in real time. It simplifies the process of applying the correct tax, reducing errors, and helping businesses remain compliant.
Tax audit: Manage tax audits by organizing and retrieving financial records, preparing necessary documentation, and tracking audit progress. This feature enhances transparency, accountability, and confidence in the accuracy of tax filings and records.
CSV reports downloads: Export your tax data and financial reports in CSV (Comma-Separated Values) format. This format is widely compatible with spreadsheet applications. It simplifies data transfer and ensures the availability of required financial data in a structured format for various financial and accounting purposes.
Customer support options: Knowledge base, chat, email, phone, and inquiries via an online form.
Who should consider TaxCloud?
Tax professionals providing tax compliance services to eCommerce clients can benefit from TaxCloud for accurate sales tax calculation and reporting. Since the tool integrates with various eCommerce platforms, they will get easy access to all the transactional data and calculate taxes on them. This will promote accuracy as the data will be coming directly from the eCommerce platforms without the need for manual data entry or complicated data transfers that are prone to errors and data gaps.
To present the most up-to-date information, the product information below shows the latest real-time ratings, which may differ from the ratings values at the time this report's analysis was conducted, since new reviews may have been left in the meantime.
Trial/Free Version
- Free Trial
- Free Version
Starting price
Device compatibility
/ Pro tip
Opt for a tax tool with a bank reconciliation feature to ensure the accuracy of financial data. This feature helps match financial records with bank statements, identifying discrepancies and errors.
5. TurboTax Business
TurboTax Business not only calculates and files taxes for you, but it also provides the support and guidance you need to track and report your business expenses. You can use the tool to prepare income tax returns for various businesses, regardless of their entity type. Additionally, TaxCloud lets you file your own taxes. You can do the calculations on your own and file your sales tax returns. If needed, you can connect with a tax expert to get your calculations reviewed.
Product features of interestTax forms: Access and complete a wide range of tax forms required for filing federal and state tax returns accurately. These forms include forms for employees, contractors, shareholders, and partners.
Asset depreciation calculation: Determine the depreciation of assets over time, as required for tax reporting. You can input details about the asset's cost, useful life, and any applicable depreciation methods, and the tool will calculate the depreciation expense for each tax year.
Tax returns preparation: Prepare for tax return filings by adding your financial data, income, deductions, and credits into the software, which then automatically populates the necessary tax forms and schedules. It performs tax calculations, checks for errors and inconsistencies, and generates a complete tax return package.
Customer support options: Knowledge base, help videos, community, and phone support.
Who should consider TurboTax Business?
Small eCommerce sellers with the skills to manage taxes on their own can benefit from TaxCloud. They can prepare their tax filing themselves and submit them via the tool. The tools also come with a team of tax experts who can help review the calculations before they are submitted to ensure accurate filing.
To present the most up-to-date information, the product information below shows the latest real-time ratings, which may differ from the ratings values at the time this report's analysis was conducted, since new reviews may have been left in the meantime.
Trial/Free Version
- Free Trial
- Free Version
Starting price
Device compatibility
6. Xero
Xero is an accounting software solution that helps you track and manage bills, expenses, payments, and inventory. It supports transactions in over 160 currencies and automatically calculates sales tax on those transactions. You can customize sales tax rates and prepare for tax returns. Xero also allows you to connect your bank with the software so that the band transactions automatically flow into the software for tax calculations.
Product features of interestInvoicing and quotes: Create professional-looking invoices and quotes for your clients by customizing templates with your business information, client details, and line items for services rendered. This feature simplifies billing processes, tracks payments, and helps maintain a clear record of financial transactions.
Bank reconciliation: Match your financial records with your bank statements to ensure accuracy and consistency. The tool identifies discrepancies between recorded transactions and bank-processed transactions, allowing you to reconcile the two sets of data.
Mobile access: Use a mobile app of the software to access your tax-related information via your smartphone and tablets. It provides flexibility and convenience, enabling you to work on tax-related tasks, review financial information, and collaborate with clients or colleagues while on the go.
Customer support options: Knowledge base, FAQs, chat, email, and phone support.
Who should consider Xero?
Small business accountants can consider investing in Xero for their accounting and tax management tasks. The tool will simplify tasks, such as bank reconciliation, invoicing, and expense tracking, saving them time and reducing manual data entry. They will also be able to access client data and perform accounting tasks while on the go using the mobile app.
To present the most up-to-date information, the product information below shows the latest real-time ratings, which may differ from the ratings values at the time this report's analysis was conducted, since new reviews may have been left in the meantime.
Trial/Free Version
- Free Trial
- Free Version
Starting price
Device compatibility
/ Pro tip
Assess the document management functionality of the tax platform to ensure you can efficiently organize and store tax-related documents. It will help you easily retrieve documents whenever needed.
How much does top-rated tax software cost?
A tax software solution can cost as low as $19 per month, or go all the way up to $636+ per month, depending on various factors—features, number of users, infrastructure requirements, business size/type, training availability, deployment options, integrations, and offered storage. Most tax software typically offer the following pricing plans:
Free trial: No-cost trial plans of up to 30 days, giving users access to either all or limited features of the software.
Free version: Free software plans offer basic features and limited premium feature access. These are ideal for small tax practitioners with a limited budget.
Entry-level: Starts at $19 per month and offers limited features such as e-filing and document management. This is a good option for small tax practitioners with basic needs.
Mid-tier: Mid-range pricing for tax software ranges from $27 to $318 per month. It is ideal for midsize tax practices with multiple software users looking for advanced features such as tax form generation and integration.
High-end: Advanced plans offer dedicated account managers and priority support. These are ideal for tax practitioners with large-scale operations.
Hidden costs associated with top-rated tax software
Besides the software license itself, there may be additional costs associated with tax software for small businesses. These may include:
E-filing fees: While some tax software includes e-filing services in their packages, others may charge per return when electronically filing tax returns with tax authorities.
Data storage: If the software offers cloud-based storage for tax-related documents and data, there might be storage limitations or additional fees for exceeding storage quotas.
Upgrades and add-ons: Additional features, modules, or upgrades beyond the basic software package may come with extra costs.
Frequently asked questions when selecting top-rated tax software
Consider asking your software the following questions to ensure you pick the best tax software for your needs.
Does the tool have audit management capabilities?
Audit management capabilities allow you to organize and retrieve relevant financial records and documents, track audit progress, and respond to audit inquiries promptly. It helps ensure compliance with tax regulations, reduces the risk of penalties, and minimizes the disruption and stress associated with tax audits.
What are the data security features of the tool?
Checking data security features in a tax management software solution helps ensure the safety of sensitive financial and personal information. Tax software often handles highly confidential data, including Social Security numbers, financial statements, and income details. Ensuring robust data security measures such as encryption, access controls, and regular updates helps protect against data breaches, identity theft, and unauthorized access.
Does the tool support mobile access?
A tax mobile app allows you to work on tax-related tasks such as tax planning or reviewing IRS forms and tax deductions on the go. You can also access client data from anywhere, and meet client needs promptly. It enhances productivity, responsiveness, and client service, making it easier to manage tax obligations efficiently. Furthermore, a well-designed mobile app ensures a seamless user experience, enabling you to work effectively even when away from your desk.