Growth-focused firms need more than basic solutions to be successful
Tax return complexity isn’t creeping in – it’s already here. From multi-entity returns and crypto transactions to ever-changing tax codes, the volume and intricacy of client work have grown dramatically. And with limited staff and time, many firms struggle to keep up.
For firms focused on growth, the challenge isn’t just about keeping up; it’s about scaling up. That means having a tech stack that can handle more than just basic 1040s. It means preparing for high-volume, high-complexity returns without sacrificing accuracy, speed, or client service.
If your firm plans to grow in the tax space, now is the time to evaluate your tech stack. The right tech stack empowers you and your team to handle complex returns easily and serve your clients better.
Manage tax complexity more efficiently
If you’ll be handling more tax returns, you’ll also likely be working with more complex returns. The upside of that kind of work is that you can charge clients more. That’s increased revenue! The downside is that it eats up valuable staff time. That’s decreased efficiencies. Complex returns take more time to prepare and can require more staff collaboration, reducing staff capacity.
Key features and benefits of professional tax preparation software for small firms
For small firms aiming to grow, tax preparation and compliance software must do more than file returns. It needs to be a strategic enabler.
The ideal tax preparation solution will scale with you, while helping manage complexity, boost productivity, and deliver better client outcomes. For small firms, the right tax prep software can be a game-changer. Here’s what to look for:
Support for complex returns
Your software should handle a wide range of return types with built-in support for multi-state filings, K-1 data, crypto transactions, and niche industry needs like depletion and depreciation. As your firm takes on more sophisticated work, these capabilities become essential.
Workflow automation
Automation features like auto-population of forms, built-in diagnostics, and customizable review checklists reduce manual effort and improve accuracy, allowing staff to focus on higher-value tasks and shorten turnaround time.
Multi-user collaboration
Look for platforms that allow multiple staff to work on the same return simultaneously, with real-time updates and role-based access. Multi-user access is critical during peak season, when collaboration is critical.
Integrated document management
A strong document management system should include secure storage, version control, and audit trails. It should also support digital client onboarding and e-signatures to streamline intake and reduce paper clutter.
Cloud-based flexibility
Cloud-native tax prep software offers significant advantages for small firms. It enables remote access, automatic updates, and scalability without an in-house IT infrastructure. In contrast, on-premise systems require more maintenance and limit flexibility, especially for hybrid or remote teams.
API and integration capabilities
Your tax software should integrate seamlessly with bookkeeping platforms, document management, and client portal systems. Open APIs allow data to flow freely across your tech stack, reducing duplication and errors.
Security and compliance
With increasing regulatory scrutiny, your software must meet high standards for data protection, retention policies, and audit readiness. Cloud-based platforms often offer built-in compliance features and automatic updates to stay current with tax law changes.
Choosing the right tax preparation software isn’t just about features. It’s about finding a solution that aligns with your firm’s growth strategy. Whether expanding services, increasing return volume, or targeting more complex clients, your software should scale with you.
Activate artificial intelligence in tax and accounting
AI and machine learning are transforming tax and accounting, opening up new possibilities. From automating routine tasks to providing data-driven insights to support clients, AI adds a layer of strategic intelligence to deliver better and faster outcomes.
The Future Ready Accountant Report revealed that more than 50% of firms are evaluating the increased use of AI tools to keep up with industry changes. You may quickly fall behind if you are not exploring AI solutions for your firm.
However, it’s important not to get caught up in the AI hype cycle. While AI is a powerful tool for finding real-time insights, automating routine tasks, and analyzing data, clients rely on your expertise. Leverage AI to help solve customer challenges, but don’t rely solely on AI tools to do the job.
Invest in your firm’s growth
Don’t choose between price and performance. If your growth strategy includes more complex returns, invest in integrated, end-to-end solutions with advanced analytics, centralized databases, and open APIs.
