What Software Do Certified Public Accountants Use?
Explore the comprehensive digital toolkit CPAs leverage to navigate financial complexities, ensure accuracy, and optimize their professional services.
Certified Public Accountants (CPAs) use a wide array of software to manage financial, tax, and client services. These digital tools enhance efficiency, accuracy, and CPAs’ service scope. Specialized software has changed the accounting profession, enabling CPAs to manage data and perform analyses.
Core Accounting and Bookkeeping Software
Core accounting and bookkeeping software is for financial record-keeping. These applications automate recording financial transactions, managing ledgers, and producing financial statements like balance sheets and income statements. They track income, expenses, and categorize transactions.
Functions include general ledger management, accounts payable and accounts receivable. Bank reconciliation features allow CPAs to match bank statements with recorded transactions, identifying discrepancies and maintaining cash balances. This automation reduces manual errors and frees time for analysis.
CPAs use or recommend software like QuickBooks for small to medium businesses. Xero is a cloud-based option with integration. For larger clients, Sage (including Sage 50 and Sage Intacct) and NetSuite provide scalable accounting and enterprise resource planning (ERP) functions. These tools generate financial reports for business decisions and compliance.
Tax Compliance and Preparation Software
Tax compliance and preparation software helps CPAs calculate tax liabilities and prepare returns. It generates and populates official tax forms for electronic submission.
It integrates with accounting software for data import, reducing manual entry. It incorporates error-checking to identify issues before submission, minimizing rejections or audits. E-filing is standard for secure and efficient submission.
Professional tax software includes UltraTax CS, Lacerte, and ProSeries. UltraTax CS offers programs for federal, state, and local tax filings, including individual, corporate, partnership, and trust returns. Lacerte is known for ease of use and multi-state business returns. Drake Tax is another option that streamlines workflows and supports electronic signatures. These tools aid tax compliance and navigation of evolving tax laws.
Practice Management and Workflow Tools
Practice management and workflow tools help CPAs run firms, manage clients, and streamline operations. These software solutions focus on administrative and organizational aspects of a practice. They centralize information and automate routine tasks.
These tools include a client database, task management for work, and deadline tracking. Time tracking helps CPAs record billable hours, while integrated billing and invoicing facilitate payments. This approach organizes client data, manages team assignments, and monitors progress.
Examples include Karbon, Canopy, and Practice Ignition. Karbon offers document management and client requests. Canopy offers client management, document management, workflow, and time/billing. Practice Ignition simplifies client onboarding, generating proposals, engagement letters, and automating billing. These tools enhance efficiency, communication, and client relationships.
Specialized and Ancillary Software
Beyond core accounting, tax, and practice management functions, CPAs use specialized and ancillary software for diverse client needs and services. These tools provide efficiency and insight in financial management.
Payroll software, such as ADP, Gusto, or QuickBooks Payroll, is used for client payroll processing. These systems handle calculations for wages, taxes, and deductions, ensuring compliance and timely payments. Document management systems (DMS) and client portals are used for secure information exchange and storage. Solutions like SmartVault, ShareFile, and Thomson Reuters FileCabinet CS allow sharing sensitive documents, collecting e-signatures, and providing a centralized hub for financial records.
Data analytics and visualization tools, like Excel, Tableau, and Power BI, analyze large datasets, identify trends, and create visual reports that offer financial insights. Audit and assurance software like CaseWare, AuditFile, or CCH Axcess Audit streamlines the audit process, from planning to reporting. Financial planning software, such as eMoney Advisor or RightCapital, assists with wealth management and investment strategies. This software enables CPAs to deliver services across financial disciplines.