As a financial analyst, you are likely tasked with reviewing different software offerings to help your clients save money on their taxes. Are you looking for a tax planning software to help you get ready for the upcoming tax season?
If so, you should keep it in mind while shopping around. Not all software is created equally, and some programs have more features than others.
Here is a list of features to check for when choosing the best tax planning software:
1) The Ability to Import Data from a Variety of Sources
The personal finance software market was valued at $0.94 billion in 2019. It shows a lot of competition in this industry, and many software developers are trying to get a piece of the pie. As such, most tax planning software will have the ability to import data from various sources.
It is vital because it will allow you to get all of the information you need into one place to make the best decisions for your clients.
Ensure that the software you choose can import data from many sources like PDF, Excel, or Word files. It will help make your job a lot easier.
2) The Ability to Generate Detailed Reports
One of the benefits of using a tax planning software is that it can generate detailed reports for your clients or yourself. The reports shall show you how much taxes you will pay for the current and past years.
Check if the software generates reports for different tax returns, such as personal income tax returns, partnership tax returns, and corporation tax returns.
To be sure you get the most value for your money, you should check the software’s ability to generate reports for different countries.
A report will include the following:
-The client’s total income
-Deductions and allowances you’re entitled to
-Taxable income
-Income tax payable
-National Insurance contributions (NICs)
-Student loan repayments
-Capital gains tax (CGT) payable, if any
3) The Ability to File Taxes Electronically
Many software programs allow you to file your taxes electronically in today’s world. It is an excellent feature because it allows you to get your refund faster and eliminates the need for paper returns.
Electronic filing is also more accurate than paper filing, which means less chance of your return being delayed or rejected.
Some software programs even allow you to file your taxes directly from your mobile device. It is an excellent feature if you are always on the go and must file your taxes while away from your computer.
4) Easy to Use
The best tax planning software is the one that is easy to use. You do not want to spend much time figuring out how to use the software.
Choose a software that is straightforward to navigate. Look for an easy interface on the eyes which has helpful hints along the way. If you are unsure how to use the software, ask the customer service representative for help.
5) Security
When dealing with a client’s taxes, you want to ensure that your information is secure. Choose a tax planning software that has security features in place. Look for a software that encrypts your information. It will help protect your information if the software is to be hacked.
Also, look for a software that has a good privacy policy. This policy will state how the software company protects your personal information.
Some essential security features include:
– Two-factor authentication
– Data encryption
– Automatic logouts
With these features in mind, you will choose the best tax planning software for your needs.
Conclusion
By taking the time to research different software, you will find the one that fits your business best. This software can help take your business to the next level.
As a financial planner, you want to offer your clients the best possible service. Tax planning software can help you do just that.
