Drake Tax affordable efficient
Use Cases and Deployment Scope
I am a single-tax preparer firm and Drake Tax software is affordable and provides all the tax forms I need. Given the low-cost, this program is great for smaller businesses and/or those just starting out. I still use the Desktop version of Drake tax, to save money, so I cannot speak to their online tax software. They have great support, highly responsive via both email and phone. I have never had an issue getting someone on the phone if needed and they have always been able to resolve my issues quickly and efficiently. Any time there is a known issue with their software, servers, etcetera we are made aware quickly. Updates are constant and in-line with IRS rules and updates, which I find to be of the upmost importance since we deal in accuracy. Drake also provides a nice suite of linked online tools; client portal, e-signature, and workflow, to name a few. Many are add-ons, so they do come with a price, however it seems to be worth it to keep everything streamlined and efficient. To be clear, I had already switched to a different portal and e-signature tool with built-in tax research, before Drake made some of their improvements. My experience with the portals and e-signature tools beforehand was good, I no longer use them because of sunk costs. On the tax research note, you can purchase a discounted TaxBook subscription and the software has built-in links to the tool that opens the TaxBook site in your browser, often to the exact section needed. Last two items I can call to mind: Drake offers multiple bank tools, like Refundo, that integrate into their software if you use these features. They also offer some good audit protection plans, fortunately this has been a non-issue for me. My clients are not inclined to pay extra for the bank tool options (pay via refund, refund advance, etc.) or the per-return option of audit protection so I discontinued my enrollment with no issues.
Pros
- Customer Support - Drake has a good knowledgebase and customer community. They have quick response times to emails and open request tickets. I am never on hold when I call in for any significant amount of time.
- IRS Compliance - The desktop software requires updates anytime there is a need for one, whether it be tax code changes at the federal or state levels, known issues in the software, or even for new tools or help information. I have never been concerned with the accuracy of the software based on this and other research.
- Tax Software and Forms - they have most forms available for individuals, businesses, trusts, estates, FBAR, etc. You also have the option to install only the states you want. Not to mention that backups and restores are simple if you ever need to update a computer and move everything over.
- Integrated tools and add-ons - they are constantly working on improving their tools to make the full experience better for tax preparers and their clients. All at some of the lowest costs available.
Cons
- I have laid out the positive side of the tax software and available forms, there are some that are unavailable. More importantly though, some of the more complex forms could use better in-software help features.
- The TaxBook could potentially better serve me if it opened within a browser or window in the tax software, allowing a split-screen potentially. This is more a matter of convenience and somewhat physical comfort as much as functionality.
- Occasionally there are odd issues that require help. One comes to mind, recently a field, showing a previously made tax deposit, was being populated and I could not find the source of that data so I had no idea why it was there. An issue like this requires researching my files and potentially reaching out to the client to verify. This takes time and can potentially reflect poorly on me as the preparer.
Return on Investment
- I have been able to grow my tax client base significantly with a minimal investment in tax software. Their built-in printer tools are great. I have begun using tracking tools and notes more in the system than in the past and that benefits me by better keeping my data in one place. The ROI increases annually because the price of the software increase is immaterial compared to the volume of work I can run through it with no issues.
- A small detriment is that tax research tools are separate from the software itself.
Usability
Alternatives Considered
Proconnect Tax Online and Turbo Tax Live
Other Software Used
Google Drive, OneDrive, Anthropic Claude, Google Chrome, NordVPN, LastPass for Business