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How I reduced my tax software costs

Just before the Christmas break I received an unwelcome email reminder from TaxCalc, who I used for accounts production and tax filing purposes, that my tax software license was about to expire. I should explain that I am a part-timer practitioner these days, I have less than fifty clients.

I was about to renew, January is not a good time to consider changing  tax software, when a recurring issue with Tax Calc resurfaced, the cost. For my poultry few clients I seemed to be paying quite a fee.

Taxfiler

I remembered a conversation with a practitioner earlier that month about a cloud based product, Taxfiler, so I took a look. I must admit that my initial wander round their website was not filled with much enthusiasm until I realised that I could probably satisfy my client needs for accounts production and tax filing for just £10 per month! Even the unlimited version would only cost £15 per month per user.

Exiting the site, I Googled “Taxfiler” looking for reviews and I have to admit that they were all positive. I signed up.

Downsides?

Taxfiler does not have the flexibility of the “majors” in the market, it processes trial balances, so once you have entered a TB you can’t adjust with journal entries. However, most of my clients use Xero, and keeping the Xero nominal up to date is no great chore. Transferring the TB is a piece of cake, although the chart of accounts in TaxFiler is fixed, I have had no problem thus far in finding a home for account balances.

A couple of minor gripes. LLP accounts formats are only just being beta tested and for company accounts it is necessary to post a TB before tax is calculated, transfer this data to the tax module, calculate the tax, and then update the accounts for the CT reserve before updating the accounts appended to the tax return.

The first company that I processed took no more than 30 minutes to transfer the final TB and create accounts and CT return. The filing of accounts and the tax return is slick and worked a dream.

For practitioners who have an eye on cost, TaxFiler is a no-brainer. I can see problems for practices who are used to using their software as a nominal ledger, but if you can produce a final TB from the client’s bookkeeping software, TaxFiler might be worth considering when you get your next software renewal bill.

Just in case you were wondering… This is an unsolicited testimonial. I was not invited to comment on this software and I will receive no kick-backs from your response.

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