What Tax Software Should You Choose for Your Business?
Opening your own tax firm is exciting — but one of the first major decisions you’ll make is choosing the right tax preparation software. The software you pick will affect every part of your business: how efficiently you work, how professional you look to clients, and how smoothly you stay compliant with IRS e-filing requirements.
Here’s a guide to help you pick the best tax software for your business — whether you’re a new preparer or ready to expand your firm.
Know What Your Firm Needs Before You Buy
Not all tax software is built the same. The “best” one depends on your firm’s size, services, and goals. Before you start comparing features, take a moment to think about what you truly need.
Consider whether you’ll be preparing only individual returns (1040s) or if you’ll also handle business returns like 1120, 1065, or 990. Think about whether you’ll work virtually, in person, or both — and whether you plan to stay solo or build a team. If you anticipate adding bookkeeping or payroll services later, look for a program that can grow with you. And finally, decide what your software budget looks like, since professional-grade programs can range anywhere from a few hundred dollars to several thousand per year.
Your answers will narrow down your choices and help you find the platform that truly fits your workflow.
Desktop or Cloud-Based? Know the Difference
When choosing software, your first decision will be whether to use a desktop or cloud-based program.
Desktop software runs locally on your computer. It’s fast, reliable, and familiar to many preparers who prefer the traditional setup. It’s typically a one-time installation, which can make it cost-effective in the long run. However, it requires manual updates and regular data backups to ensure your work is protected.
Cloud-based software, on the other hand, operates entirely online. This option is ideal for those who want flexibility — it allows you to log in from anywhere, collaborate with clients, and easily share documents. The convenience of automatic updates and integrated e-signature tools makes it a favorite among virtual and paperless firms. However, it’s a subscription model and depends on stable internet connectivity.
The Best Tax Software Options for 2025
There are many professional tax software options available, but a few stand out as industry favorites. Here’s an overview of the top programs and what types of firms they best serve.
Drake Tax
Best for: Small to mid-sized firms and solo preparers
Drake is a long-standing favorite among tax professionals because it’s affordable, reliable, and includes all the major return types with unlimited e-filing. It’s known for its strong accuracy checks and customer service. The interface may look dated, but it’s dependable and easy to navigate. Annual pricing runs around $1,800 for unlimited returns. Drake also offers add-on tools like Drake Cloud for remote access, SecureFilePro for client portals, and GruntWorx for document scanning and data entry.
TaxSlayer Pro
Best for: New or mobile preparers
TaxSlayer Pro is a great entry-level option for preparers who want a simple, straightforward system. It offers both desktop and cloud versions and integrates well with refund transfer products. It’s cost-effective and user-friendly, making it ideal for startup firms. Pricing typically ranges from $1,200 to $1,600 per year depending on the package. While it’s not built for the most complex returns, it’s an excellent choice for individuals and small businesses.
Intuit ProSeries
Best for: Firms focused on individual returns
ProSeries offers a clean, forms-based entry system that will feel familiar if you’ve used TurboTax. It’s known for its strong diagnostic tools and seamless integration with QuickBooks. The learning curve is gentle, and support resources are widely available. The cost varies depending on whether you choose the pay-per-return model or the full license, which generally starts around $1,000 and can reach $2,000 or more. It’s an excellent fit for preparers handling mostly 1040 clients.
Intuit Lacerte
Best for: Established firms handling complex or high-income clients
Lacerte is a high-end solution designed for experienced professionals managing partnerships, corporations, trusts, and multi-state returns. It offers detailed diagnostics, advanced reporting, and tight integration with QuickBooks Online Accountant. Because of its capabilities, it’s priced at a premium — typically between $3,000 and $6,000 per year. It requires more setup and training time, but once in place, it’s one of the most powerful programs available.
ATX (by Wolters Kluwer)
Best for: Accountants and firms filing a wide variety of entity returns
ATX uses a form-based input system that’s intuitive for accountants and enrolled agents. It comes with a vast library of federal and state forms and integrates with other Wolters Kluwer products. It’s especially strong for business and non-profit returns. Pricing usually ranges from $2,000 to $3,000 annually. The main drawback is that it can slow down during peak filing periods, but it remains a solid and reliable option.
UltraTax CS (by Thomson Reuters)
Best for: Growing or multi-preparer firms
UltraTax CS is designed for firms that plan to scale. It integrates seamlessly with the Thomson Reuters CS Professional Suite, which includes accounting, payroll, and document management tools. It’s comprehensive and powerful, though it comes with a higher cost and learning curve. Expect to spend between $4,000 and $6,000 or more per year depending on the license. For firms expanding into full-service accounting, it’s an excellent long-term investment.
CCH Axcess Tax (Cloud-Based)
Best for: Virtual, paperless firms
CCH Axcess is a fully cloud-based tax solution built for modern, tech-forward practices. It integrates tax preparation, workflow management, and document storage into one platform. It’s secure, efficient, and ideal for firms that operate remotely or want to go fully digital. Pricing is customized but generally falls between $4,000 and $7,000 annually. It’s best suited for multi-preparer firms that prioritize automation and collaboration.
Supporting Tools That Complete Your Tech Stack
Your tax software is only one part of your firm’s technology setup. To run efficiently and stay compliant, you’ll need additional tools for client communication, document management, and cybersecurity.
For client portals and electronic signatures, many preparers use platforms such as TaxDome, Canopy, SmartVault, or SecureFilePro. These make it easy to send, receive, and sign documents securely. Practice management systems like TaxDome, Canopy, Jetpack Workflow, or Karbon help you track projects, client deadlines, and internal workflows.
For document storage, cloud-based tools such as Google Workspace, OneDrive, or SmartVault ensure you have secure, encrypted backups of all client files. Cybersecurity software like Bitdefender, NordLayer, or Microsoft Defender protects sensitive taxpayer data and keeps you compliant with IRS security standards.
If you plan to offer refund transfers or e-file services, many tax programs — including Drake and TaxSlayer Pro — already include these integrations.
Test It Before You Commit
Before making a purchase, take advantage of free demos or trial versions offered by most vendors. Use the trial to prepare a few sample returns, test the system’s speed, and see how well it fits into your workflow. Check whether it includes all the forms and states you’ll need, and don’t overlook the quality of customer support — quick assistance during tax season can make a big difference.
Final Thoughts
When you’re opening your own tax firm, your software becomes the backbone of your business. Choose a program that fits your current needs but also leaves room for growth.
If you’re just starting out, Drake Tax or TaxSlayer Pro are excellent, affordable choices that provide professional-level accuracy without the high overhead cost. As your practice grows, programs like Lacerte, UltraTax, or CCH Axcess can give you more advanced features, scalability, and team collaboration tools.
Your goal should be simple: choose software that helps you stay compliant, work efficiently, and give your clients a seamless, professional experience from start to finish.