Switching Tax Preparation Software: 5 Things To Keep in Mind

If you’re a tax preparer, you already know how critical your tax software is to your business.

It’s integral to nearly everything you do, in and out of tax season. So, the decision to switch is often daunting. 

You may need solutions for pain points in your current software or a price point that works better for your business. But you may be hesitant to make a change because of the hassle of learning a new system and transferring client data. If you weigh your options carefully and look for solutions that meet your needs, and prioritize easy transfers, the benefits of switching often far outweigh any inconveniences.  Here are five things to consider as you shop around for new tax software.

1. Ease of Use

Complaints about your current tax software are often the main motivator for switching. Before you start browsing for new software solutions, do a critical evaluation of your current system's pain points. 

What aspects of your current software hinder your workflow? Is the user interface unnecessarily confusing? Does your software create extra work, like having to manually enter client data? Identifying these pain points helps you know exactly what you’re looking for in your new software solution. It’s also a good idea to look into the onboarding system of your new software. Do they offer video tutorials or live training sessions with a customer support rep? Adequate support can help lessen the learning curve of your new tax software and make the transition as seamless as possible.

2. Reliable Customer Support

Speaking of customer service, its importance in the tax software industry can’t be overstated – long customer service wait times in the middle of tax season – can be enough to motivate a switch. But your efforts in switching may be wasted if you haven’t confirmed that your new tax software offers better customer support than your current one. 

The first step is to check out a software’s online resources. Do they offer a knowledge base that helps answer common questions and troubleshoot software issues? Do they have a database that covers each supported form in detail? Robust resources like this mean you may be able to find answers to your questions in a matter of minutes.

Of course, you may still need to speak to customer service at times, and having prompt, knowledgeable support can be the difference between a minor hiccup and a major disruption. Look into the support channels a software offers, including phone and live chat. If they don’t advertise their typical wait times online, ask their sales team before you commit, and make sure to ask if those times tend to be longer in peak tax season. Finally, you can check out user reviews and testimonials for insights into the responsiveness and expertise of a software provider's support team.

3. Efficient Cost & Pricing Models

Cost is another common reason for switching tax software. New tax preparers often opt to start with software that offers a pay-per-return pricing model. But as their client base grows, this model quickly becomes expensive and unpredictable. If  you find yourself looking to cut costs, it’s time to look for software options that provide transparent and scalable pricing structures, such as a flat-rate yearly subscription. 

4. Intelligent Business Form Support

As your tax practice grows, you may expand your offerings to serve new types of clients, such as small businesses. If your current software doesn’t support business forms, you’ll need to find one that does. Some tax software only includes these forms in certain packages, so be sure to read the fine print before making the switch.

5. Secure Data Transfers

The stress of transferring client data can keep many tax professionals from switching to new tax software, even if their current system isn’t serving their needs anymore. It’s a valid concern – you want to keep your clients’ data secure and ensure that it’s still formatted correctly in your new system. 

But don’t let the transfer process prevent you from making the switch. There are tax software solutions that prioritize seamless, secure data transfers. Look for solutions that boast end-to-end encryption throughout the entire transfer process and offer live customer support for new users. 

Some tax software solutions can only transfer data from certain other software providers, so make sure your new choice works with your current software. Your new software solution should be transparent about what information and forms it can transfer to avoid unexpected surprises. For example, some tax software transfers only personal information such as clients’ addresses and Social Security numbers but doesn’t transfer prior year 1040s or other forms. 

Whatever your reason for switching tax software, you want to be confident that the new software will meet your needs before you make the change. Look into a company’s reputation for user-friendliness, especially in regard to the pain points you face in your current software. Make sure that they offer adequate customer support during tax season and a smooth data transfer process. If it checks those boxes and has the price point and forms you need, you’ve likely found a winner that can help you grow your business.