5 software features critical to a successful tax business launch

Data security

A successful business is built on the trust developed between owner and customer. Violate this trust once and you may get a reprieve, but violating this trust across multiple clients is a recipe for business ruin. That’s why it’s important to be extremely cautious and safe with client tax data.

A software vendor serious about data security will incorporate data safeguards around customer information with multiple levels of authentication required for access. In addition, mobile applications that are integrated with the primary tax software program must also have the same rigorous standards for security, as one weak link in the data chain can be problematic.

Return accuracy 

Doing a job right the first time not only saves time and money, but it also instills loyalty and trust among clientele. The familiar saying, ‘garbage in equals garbage out’ really is true. However, in the cases where data is entered incorrectly into a tax return, you never want the blame to be aimed at you, the preparer, or the software program you use.

In large part, one can mitigate these mistakes by choosing a software program that incorporates visual aids to alert when taxpayer data inconsistencies are identified. Safeguards such as automatic tax form updates (especially important during the early days of tax season) and a ‘what if’ scenario option (a popular feature in TaxWise® Desktop) which help preparers analyze the best outcomes for a taxpayer’s situation are both valuable tools. Once your business earns a reputation for consistently providing clients with an accurate tax return that maximizes their tax refund, you’ll soon find a consistent flow of new customer referrals coming your way.

Preparation speed

 In the early days of your tax preparation business, clients are typically fewer in number, thereby giving you and your staff extra time to overcome any unexpected tax season challenges (and there always seems to be a few unique challenges with each tax year…so expect the unexpected). But as your tax shop clientele grows, time becomes scarcer and opportunities to bounce back from delays or mistakes become less forgiving.

That’s why it’s important to enlist a tax software program that automates all the important functions needed to quickly power through the simplest returns, to the more complicated 1040 returns. The most essential functions to look for are automated form updates, real-time return diagnostics, visual tax refund indicators, secure e-signature options and timely e-file status alerts. TaxWise Online provides all of these features and more in a convenient cloud-based module.

User-friendly interfacing

Making tax return work easier for you and your staff is important especially as the tax season progresses. For example, having to needlessly navigate extra steps between disconnected return screens and your primary tax research tools can distract your work rhythm, leading to more errors. Similarly, being forced to save and exit a tax return, just to calculate a newly adjusted refund amount or run a diagnostics report might be tolerable steps on one or two returns per day, but compound your daily return production by ten and you have a recipe for tax season burnout.

In contrast, the tax software you select should have seamless integrations with your primary tax research solution, document storage solution, and/or portal or client communication tools. Furthermore, recalculations of client refund amounts as well as real-time diagnostic checks (for return errors) should occur as the preparer is working on the client return without the need to stop, save and reopen.

Market expanding capabilities

This final ‘must-have’ software feature has nothing to do with general return preparation functions, but everything to do with giving you both logistical and practical advantages over your competition.

• Logistically speaking, a trusted, cloud-based tax preparation software with a dedicated mobile app can give you the ability to expand your marketplace across all 50 states, U.S. districts, provinces and territories. Have a client that wants to refer you to their entire family 500 miles away? No sweat! You can gladly serve them! Not only does a cloud-based tax software expand your clientele possibilities, it also opens up more options for hiring quality staff members remotely, regardless of their distant locale.

• In a multi-cultural world your best software choice should also support bilingual Spanish forms, for greater support to your Spanish speaking clients and prospects. There’s no reason to give away business to competitors who specialize in this area. Make the decision to demand this feature in your software of choice, whether you decide to market to the Spanish speaking community immediately or in the near future. Having this feature readily available will make you more competitive as you grow.

TaxWise Online allow preparers to break down the barriers standing between themselves and new markets, whether defined by logistics or languages.

Take-away

Many factors go into making a final tax software purchasing decision. And while the five software features detailed in this article are incredibly important at face value, they are even more powerful when experienced via a live demo or even a free trial.

If you are in the process of choosing a tax preparation software for the first time or if you’re an existing preparer contemplating a switch from your current vendor, consider speaking to a Wolters Kluwer software consultant to discuss if TaxWise® Online is right for you.

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