ATX vs. Drake: Which is the right option for tax firms?

With tax season nearing, tax experts are eager to make their procedures more efficient and reduce mistakes.

One crucial aspect of managing clients’ requirements is choosing the correct tax software. ATX and Drake Tax are among the top choices in the tax software industry.

While both software options provide various features to help tax preparers, they target distinct kinds of companies and professionals.

This blog assesses the pros and cons of ATX and Drake, helping you determine which is the better option for your tax company.

Overview of ATX and Drake

ATX is well-known for its user-friendly interface and a broad selection of tax forms. The software is designed for small to midsize tax firms and provides tax preparation services for individual and business clients.

ATX is included in Wolters Kluwer’s range of tax and accounting solutions, allowing it to work effortlessly with other products within its ecosystem.

Drake serves tax companies that require fast processing of numerous returns and provides extensive assistance for personal, corporate, and non-profit tax filing services.

Also Read: Drake vs. Lacerte: How to Choose the Best Option

Usability and Interface

If your company values a straightforward, user-friendly interface, ATX might be the preferable option. The interface looks like the regular paper forms, which helps firms adjust to software more efficiently.

The software enables users to switch between forms easily, especially for those who like to see the data visually.

In contrast, Drake Tax has a more functional, data-entry-driven interface, which might take some time for new users.

However, once users become familiar with it, Drake’s system enables faster data input, allowing tax preparers to process more returns efficiently.

Drake’s interface is designed with speed in mind, which could be a significant advantage during peak tax season.

Form Coverage and Accuracy

ATX’s form-based approach can minimize errors, as tax preparers can visualize the entire return process.

Drake’s real strength lies in the accuracy of its calculations. The software automatically updates fields as data is entered, minimizing the risk of errors.

Drake’s approach may lead to fewer mistakes and faster turnaround times for firms focused on speed and precision.

E-Filing Capabilities

Drake is perfect for companies requiring rapid processing of many returns as it enables limitless e-filing for federal and state tax returns. Its electronic filing system is seamlessly integrated and user-friendly, guaranteeing prompt and precise return submission.

ATX allows e-filing but restricts the number of returns based on the chosen pricing tier. For smaller firms that don’t process a high volume of returns, ATX’s e-filing capabilities may be sufficient. However, larger firms or those expecting significant growth may find ATX’s e-filing restrictions a limitation.

Pricing

ATX employs a pricing system with tiers, beginning with cheaper packages targeted towards small businesses. Yet, the price may increase substantially as you progress through the levels to unlock additional features.

On the flip side, Drake provides an all-encompassing pricing plan, covering unlimited returns and e-filing.

Even though Drake may have a higher initial cost, the absence of added charges for extra returns or forms can make it a more cost-effective option in the long term for more prominent companies.

Increasing Size Scales

If your company intends to extend its services or increase in size, this integration could provide substantial operational benefits.

While less focused on external integrations, Drake provides enough functionality for standalone use.

Yet, businesses already dependent on specific tools may discover that ATX’s more comprehensive range of integrations is more beneficial.

Also Read:

Which is Right for Your Firm?

The decision between ATX and Drake ultimately depends on your firm’s size, the volume of returns you handle, and your specific needs.

If your company is small and prefers a more traditional, form-based method for tax preparation, ATX could be the preferable option. Its vast selection of form templates, user-friendly interface, and compatibility with other Wolters Kluwer software make it a reliable choice for companies that value thorough form availability and user-friendliness.

If your company processes many returns or prioritizes quickness and effectiveness, Drake may be the perfect match. Its comprehensive pricing, quick data-entry system, and other features make it ideal for businesses looking to boost efficiency during tax season.

Ultimately, ATX and Drake provide top-notch options for tax professionals, but identifying your firm’s requirements will guide you in selecting the optimal choice.