Lacerte or ProConnect: Which one should you choose for tax practice

As tax season approaches, it’s the best time to determine which tax preparation software is needed to run the practice. Many tax preparation solutions are available, but two of the most popular products that come to mind are Intuit’s Lacerte and ProConnect Tax Online.

Both are a good source of streamlining tax preparation work for any tax professional; however, both options have strengths and potential drawbacks. So, how do you decide which is suitable for your tax practice?

This blog will cover the essential features, differences, and benefits of Lacerte and ProConnect so you can make that all-important choice.

Also Read: UltraTax vs. Lacerte: Which One You Should Pick For Filing Returns

Overview of Lacerte Tax Software

Lacerte is professional desktop tax preparation software for taxpayers managing complex returns.

It is best used by firms processing significant volumes of returns and might need extensive support for tax forms.

Key Points of Lacerte

• Comprehensive Tax Form Support: This software supports about 5,700 forms and various tax returns for individuals, business entities, trusts, and estates.
• Advanced Diagnostics: Lacerte offers real-time error-checking and comparison tools to minimize errors.
• State Filing Support: Supports Federal and State Returns
• Custom Workflows: As the name suggests, it is best for large firms that require a granular workflow.

Advantages:

• Accuracy: High-technology processes minimize errors and integrate the data. Suitable for treating multi-state returns, real estate, and other complicated tax situations.

Drawbacks:

• Price: Lacerte is too pricey for small-sized firms as it is designed on a per-return or per-client pricing model.
• Accessible Only on Desktop: Isolated platform flexibility about remote access.

Overview of ProConnect Tax Online (PTO)

ProConnect is a cloud-based product used by smaller firms and independent tax professionals. Its pay-per-return pricing model makes it very mobile, flexible, and affordable.

• Pros of ProConnect: Cloud-Based Platform Any device with an internet connection can be used
• Intuitive Interface: Beautiful, modern, and simple layout Designed for ease of use
• Cost-Effective Pricing: Pay-per-return pricing is built for firms with smaller volumes
• QuickBooks Integration: Seamlessly imports data from QuickBooks Online.

Benefits:

• Flexibility: Work can be accessed from anywhere.
• Cost-effective: Suitable for small-sized firms and solo practitioners as it follows a pay-per-return scheme
• Easy Collaboration: Multiple users can be granted access to the return simultaneously.

Drawbacks:

• Support for Complicated Filing: It is not fully equipped to offer the features to handle complicated returns.
• Internet Sensitivity: Requires good internet connectivity.

Critical differences between Lacerte and ProConnect

• Platform: Lacerte is a desktop product. ProConnect is cloud-based.
• Pricing: Lacerte’s cost structure applies more to high-volume practices. ProConnect’s cost is much more manageable for the firm, with fewer returns.
• Customization: Lacerte offers more workflow customization, whereas ProConnect focuses on simplicity and ease of use.

Other things to consider in the selection

Client size and complexity: You have many clients with needs that vary in complexity, such as complex partnerships, many states, or complex tax forms required by the taxpayer.

In such a case, Lacerte features might be more advantageous because it has an in-depth form library and robust diagnostics, making it very rewarding for the tax professional who wants to catch each detail in his return preparation.

The ProConnect cloud platform particularly appeals to firms that believe collaboration and work from anywhere are paramount. With more firms now allowing employees to work from home, access to tax returns from any device, anywhere, is a huge plus.

The software also makes it much easier to keep client financials in line with Intuit products like QuickBooks, reducing the time it takes to prepare returns.

Which Should You Choose?

Lacerte is more vital for large firms with many complicated returns. It will also have the complete feature set and tax form support you need. If you do multi-state filings, Lacerte will be much more profound.

So, ProConnect is appropriate for small-to-medium-sized firms or solo practitioners who require much more flexibility and remote access. Its pay-per-return model is far more economical in lower-volume practices, and the cloud-based model works well for teams that require mobility.

Conclusion

Both products, Lacerte and ProConnect, have superior features. But they are targeted at different types of tax professionals.

This means that if you are working on very complex tax issues, Lacerte is your solution. If flexibility, affordability, or ease of use are more important to your practice, your best option is ProConnect.

The choice lies in your firm's needs, clientele, and budget. Also, be sure that the tax software you choose adapts to your practice’s growth and mobility needs or can be easily scaled up if the need strikes.