When you are making purchases for your tax business, some things are just easier to buy than others. Pens, sticky notes, and copy paper are all examples of easy things to buy, you can find these products in a variety of stores and don’t really require any research into which brand is the best fit for your tax business. Your e-file software is a different story. Picking the software and, more importantly, the software provider you want to partner with can be one of the most difficult and expensive decisions you make as a tax professional.
It’s a story we hear a lot: new tax preparers find an inexpensive e-file software but are slammed with hidden fees, limitations on e-filing, and poor to nonexistent support. On top of all that the software providers are more than happy to take their money but won’t offer resources, services, or guidance on how to grow your tax business. So to help new tax pros getting ready to tackle their first tax season and more experienced pros looking to switch to better software we were inspired to write this article, giving all tax pros the ability to make better informed software purchases.
#1 Customer Support
Before making a purchase you need to decide how important customer support is for you. For the majority of tax professionals, high-quality support is second to none because if you have a question in the middle of a return or the software has an issue, you need to be able to connect to a live support rep as soon as possible.
#2 Total Cost
“But wait,” I hear you ask, “just a bit ok you said not to go with the cheapest software?” Well yes, because the cheapest e-file software on the market is not often the cheapest on the market! Total cost takes into consideration things like fees, upgrades, and even training, these are all hidden costs some providers hide away until after you make your initial purchase. Furthermore the “cheap” price you pay the first year with the software will likely not be the one you pay next year as whatever promotion or deal they advertised was “limited time only.” So when making your e-file software purchase be sure to research and ask about additional costs and fees associated with the software.
#3 Don’t Pay for Extra (Unless You Need Extra)
Buying the wrong software is worse than no software at all. Your business has specific needs you want your e-file software to be able to take care of. Likely you want your tax business to grow each year and that means hiring new preparers who will also need to use the software. These are all important factors to consider when making your software purchase. Switching software can be a difficult process as migrating the data from one program to another can be
#4 Set-Up Time
The biggest reason small businesses don’t invest in new, better, software is because of the time it takes to learn and fully implement it. You don’t want the productivity of your tax business hindered by needing to train yourself and your team on brand new e-file software. Consider factors such as ease-of-use and learning resources before you make your software purchase. Each e-file software will come with its own learning curves and hurdles but these factors can be mitigated with the proper support and training resources from the software provider.
#5 Know When to Walk Away
Knowing when to leave an e-file provider is just as important a factor to consider as the other four listed. Seek advice from others in your industry who have struggled with the same software and see who they ended up switching too and why. Maybe the reason they switched is different from yours or not as big a deal to you as it was to them. If you decide to switch, do it in the offseason when you don’t have as many returns to file and have time to learn the new software.
Your tax software is one of, if not the, most important tool your tax business can invest in. Making sure you’ve picked the right software can be the difference between a smooth and stressful tax season.
Start your software journey today by checking out SFP Works, our Premium E-file Software. Click the link below to learn more about SFP Works. Use the methods mentioned in this article to help you make an informed decision on your tax software this year!
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