Drake Accounting Software Overview and Features

Drake Accounting, also called Drake Accounting® 2024, is an all-inclusive accounting and payroll system software designed for firms seeking an easy-to-use and cost-effective method of handling client accounting and payroll through its double-entry accounting system.

Its structure features account receivables, payables, reports generation, tax preparation, federal and state tax forms, and more.

The software helps provide reports, including loss reports, pre-posted reports, multi-column profit reports, comparative or single-column balance sheets, and payroll reports.

With Drake Accounting, firms can transmit Federal Forms W-2 and some state e-filing for NC (such as Forms NC-3, 1099-R, and W-2). It comes with W-2 and W-3 forms and 940, 941, 944, and 1099 forms.

While it is not cloud-based software, Drake Accounting is easy to install. It can be downloaded from the Internet, and updates are also available on the Internet.

It optimizes current technology to ensure flexibility and mobility in business activities. It works closely with Drake Tax Software, Drake-E-Sign, GruntWorx, and QuickBooks, further enriching its capabilities and user-friendliness.

Modules

It comes with two modules:

Accounts Payable: This module enables the entry of vendor invoices, printing/reprinting of live checks, and entering details of vendor invoices that may have been entered with fewer details for accounting purposes.

Another function that helps complete large operations is “Quick Payments,” which prints vendor checks.

Accounts Receivable: This module enables you to create, store, and manage customer invoices, shipments, payments, and balances.

However, it is essential to note that Drake Accounting is limited to only commercial bookkeeping and form preparation tasks postulated by the License and Non-Disclosure Agreement.

Features of Drake Accounting

Drake Accounting comes with a wide range of features, and some of the key features are as follows:

Payroll Module

Drake Accounting has a comprehensive employee payroll service that processes live and after-the-fact payroll with MICR check printing via Kotapay.

It also offers direct deposit and E-Filing of quarterly and yearly employment tax submissions and the W-2 and 1099-MISC forms.

The flexible system incorporates multiple locations with additional benefits, deductions, and pay structures by location. Each location’s payroll can be printed on a single check or per location.

Direct and indirect tips are accepted, and other information on pay stubs can be published on a separate line.

Payroll users can override general payroll accounts, and payroll entries in the general ledger can be automatically posted. This system also adopts 940, 941, 943, 945, W-2, 8809, W-4, and 8655 forms along with the federal.

It also offers features like Department of Labor wage and overtime rules and regulations and supports unlimited deductions, benefits, pay rates, localities, and divisions.

Accounting Module

Another aspect of Drake Accounting is setting up a custom chart of accounts that can be created from scratch, imported from a given client, or a template.

Payroll data can be changed at setup; new account levels can be added; budgets and initial balances can be entered, and data can be exported to Drake Tax.

The software enables entry into five journals: general journals, cash disbursement, cash receipt, payroll, and budget. The auto-entry feature can also assist you in this process.

It also handles cash reconciliation, transaction posting on a monthly and yearly basis, and the closing process. It formats financial reports with headers, footnotes, the company logo, etc. Reports can be further edited using tools provided by word processing programs.

It also assists in specifying vendor default accounts for journal entries by 1099-MISC box categories. The software provides options to input prior-year client and bookkeeping information without rewriting it, and you can check the status of the transactions by filtering them by month or year.

Vendor Payments + Account Payables

In Drake Accounting, payments to vendors or other payees, including live and after-the-fact (ATF) payments, can be printed and tracked. You can pay by invoice or use Quick Payments, which takes little time to set up. Depending on the business’s needs, It can generate, print, or e-file Forms 1099-MISC at year-end.

Furthermore, with Kotapay, employees’ and vendors’ paychecks can be directly deposited into two different bank accounts.

Accounts Receivable

The set of tools to manage accounts is well-developed in Drake Accounting. It allows you to issue invoices & customer statements, post payments, and apply penalties and service charges. It also gets the past due amounts and controls sales tax at the state, county, and local levels.

It also allows more specific management of customer credit limits, setting discounts, and using a single payment for many invoices.

Setup

Drake Accounting includes a setup panel that quickly sets up significant modules, including employees, accounting, payables, and receivables, all in one place.

You can also specify options for automated direct deposits, MICR check designer, MICR bank accounts, and check and stub options for payroll and payables.

The software also allows users to identify fee preparers; their details are completed automatically on state tax forms and 94X series tax returns.

To enhance further security and ease of having a unique interface, you can create different users as owners, administrators, or users so that they will have other rights. This restricts or opens access to any modules or sub-modules as it is deemed fit.

Furthermore, this software gives access to federal, state, and local rates and withholdings features in one place. Clients can easily modify tables and amounts or revert them to the default rates as required.

Importing and Exporting

Data from other applications such as QuickBooks, Sage 50, Intuit EasyACCT, and Dillner’s Accounting Tools can be easily integrated into the system, specifically the client, employee, vendor, and bookkeeping details.

You can also import and export spreadsheets with employee, vendor, and customer data, sales tax information, journal entries, and a chart of accounts. Data can also be exported to Drake Tax to prepare tax returns.

Drake Accounting also has user-friendly features, such as field validation icons for e-filing, simple navigation, and form zooming.

The software supports electronic e-filing of various federal and state forms, including 940, 941, W-2, and 1099, as well as 94x PIN applications.

It can also enable electronic signatures for forms and checks. It can also generate detailed financial reports and allow for PDF printing and mailing labels.

Furthermore, one of its key features is the facility to back up and restore client data and archiving options for federal and state forms and reports.

Drake Accounting versus QuickBooks Enterprise

Drake Accounting is excellent in tax preparation and ideal for larger businesses looking for scalability.

On the other hand, QuickBooks Enterprise offers user-friendly and comprehensive business management features suitable for product-based small and mid-sized companies. You can choose according to your specific needs and business size.

Imports from Sage 50, QuickBooks; exports to Drake Tax

So, it’s clear that Drake Accounting comes with a comprehensive set of tools customized to suit the needs of professional tax preparers. Drake Accounting can be an ideal choice for those focusing on tax preparation services or working in the accounting industry.

However, if you have a smaller business focusing only on bookkeeping needs, QuickBooks Enterprise might suit you.