Canopy
Cloud practice management for accounting firms with client management, document management, workflow, time and billing modules.
TaxAct Professional
Website: www.taxact.com
TaxAct Professional at a glance
- Best for
- Small US practices prioritising low software cost
- Pricing model
- Per return, or bundled by entity type
- Deployment
- Desktop install, with cloud option
- Regions
- United States
- Key integrations
- TaxAct client portal, Prior-year data conversion
Last reviewed . Pricing and features change frequently — confirm current details with the vendor.
TaxAct Professional is a tax preparation application for US accounting firms, available in desktop and cloud versions, covering individual, business, partnership, trust, and estate returns with federal and state e-filing.
How accounting firms use it
The reason firms select it is cost. Because editions are licensed per entity type, a practice filing mainly individual returns with a handful of partnerships pays for those and nothing else, rather than a suite priced for capabilities it will never use. For small practices, software is a meaningful proportion of overhead, and the difference against premium products is substantial.
Conversion tools import prior-year client data from competing packages, which makes switching realistic. Firms moving across should expect to verify carryforwards and depreciation schedules on the first year’s returns, since that is where conversion problems tend to appear.
Key features
Return preparation covers the main federal entity types with state coverage and e-filing. Diagnostics check for errors and omissions, and prior-year data rolls forward for returning clients.
Client management tools track return status and outstanding items through the season. A client portal handles document collection and delivery of completed returns, which removes email as the exchange mechanism for sensitive documents.
The cloud edition allows preparation from a browser for firms wanting remote access without maintaining hosting themselves.
Who it’s best for
Small and mid-sized US practices with a mix of individual and business returns where keeping software cost down matters more than advanced capability. It suits preparers whose work is largely routine.
Firms with complex multi-state, consolidated, or unusual entity work will hit its limits and are better served by Lacerte, UltraTax CS, or CCH Axcess Tax. Drake Tax, TaxSlayer Pro, and ATX Professional are the direct competitors at similar price points.
TaxAct Professional FAQ
- How does TaxAct Professional pricing work?
- Editions are sold per entity type — 1040, 1041, 1065, 1120, 1120S, 990 — either as unlimited bundles or on a pay-per-return basis. Firms with a narrow return mix can buy only what they file, which is where the cost advantage over broader suites comes from. Bundles covering all entity types are also available.
- Can client data be imported from other tax software?
- Yes. Conversion tools import prior-year client data from the main competing packages, which is what makes switching feasible mid-career. Firms should still expect to verify converted data on the first year's returns, since carryforwards and depreciation schedules are where conversion errors typically surface.
- Does it handle business returns?
- Yes — partnership, corporate, S corporation, fiduciary, and exempt organisation returns are all supported alongside individual returns, each as a separate edition. Multi-state processing is included, though the handling is less automated than in premium products.
- What are its limitations compared to Lacerte or UltraTax?
- Less depth on complex multi-state allocation, consolidated returns, and unusual entity structures, weaker diagnostics, and no integration with a broader practice management suite. Firms whose returns are mostly straightforward will not encounter these limits; those with complex corporate or partnership work generally will.
TaxAct Professional Alternatives
Other tax tools for accounting firms, ordered by how much of TaxAct Professional's functionality they cover.
ATX Professional
Forms-based tax preparation software from Wolters Kluwer for small US firms, with a large form library and straightforward e-filing.
Avalara
Automated sales tax compliance platform that calculates, collects, and remits transaction taxes for accounting firms.
CCH Axcess Tax
Wolters Kluwer's cloud-based tax preparation platform for accounting firms with real-time collaboration and analytics dashboards.
CCH ProSystem fx Tax
Comprehensive tax preparation and compliance solution helping accounting firms efficiently prepare and file accurate returns.
CrossLink Professional Tax
Professional tax software with high-speed e-filing, bank product integrations, and multi-office support for tax businesses.