Choosing professional tax software involves more than comparing features and prices. Tax professionals also need to know how easily they can move existing client data, train their staff, manage documents, collect signatures and payments, and fit the software into their current workflow.
Below, we answer some of the most common questions tax professionals have about Drake Software, including Drake Tax®, Drake Tax Online®, Drake Portals®, Drake E-SignTM, and Drake PayTM.
Drake Tax Products and Packages
What types of tax returns can you prepare with Drake Tax?
Drake Tax supports both individual and business tax return preparation. Package options vary, but Drake Tax Pro includes individual and business returns. Other packages may include certain return types or offer them on a pay-per-return basis.
If you’re participating in a third-party program, such as one offered through a tax franchise or partner, your specific software entitlements may differ from Drake’s standard packages. Check with your program administrator or Drake for details.
Can I change Drake Tax packages from year to year?
Yes. Because Drake Tax is licensed annually, you can select from the packages available for each tax year based on your firm’s return volume, return types, number of users, and other needs.
Package availability, pricing, and features can change, so it’s a good idea to review Drake’s current options when it’s time to renew.
Does Drake Tax work on a Mac®?
Drake Tax desktop is Windows-based. Mac users can consider Drake Tax Online or cloud-hosting options.
Drake Tax Online is listed as Mac-compatible, although some integrated desktop data-entry or import functionality may still require a Windows-based PC.
Switching to Drake and Data Conversion
How easy is it to switch from UltraTax® to Drake?
Drake provides data conversion options for several major professional tax software products. UltraTax conversions are currently listed for Forms 1040, 1041, 1065, 1120, and 1120S.
Drake offers conversion tools and services to customers switching to its software, and converter downloads and additional assistance are available through Drake Support.
As with any software migration, it’s important to review converted returns and client data before beginning production work.
Can I convert TurboTax® returns to Drake?
Drake supports conversion of TurboTax 1040 data. Unlike some conversion processes, TurboTax files must be sent to Drake for conversion.
Turnaround time can depend on factors such as conversion volume, timing, and the condition of the files, so contact Drake for current turnaround estimates before planning a migration.
Once completed, the converted data can be used within Drake.
Can I convert FreeTaxUSA returns to Drake?
FreeTaxUSA® is not currently listed among Drake’s publicly supported data converters.
Drake’s published conversion options include several professional tax products as well as TurboTax 1040. If you’re moving data from FreeTaxUSA, contact Drake’s conversion team or Support to determine whether an alternative migration process is available.
Data Entry and Navigation
Can I enter information directly into tax forms and schedules?
Yes. Drake Tax supports forms-based data entry in addition to its standard data-entry workflows. This can be useful for preparers who prefer working from a form-oriented view rather than relying exclusively on traditional input screens.
Can I switch between data-entry screens and the actual tax return?
Drake Tax provides tools for viewing calculated return results while preparing a return and navigating between results and supporting entries.
Features such as LinkBacks and LookBacks can help preparers trace calculated information back to source entries. The exact navigation available can vary by form and screen.
Can I click a specific line on a form and go directly to its input screen?
Drake’s LinkBack and LookBack functionality is designed to help users connect calculated results and diagnostics to their source data.
However, the exact behavior can vary depending on the form or line you’re reviewing. If this functionality is especially important to your workflow, it’s worth testing the specific forms you use most frequently during a demo or confirming the workflow with Drake Support.
Training and Support
Does Drake offer training?
Yes. Drake offers training resources for both Drake Tax and Drake Tax Online®.
Available resources include on-demand webinars, video tutorials, practice returns, classroom-style webcasts, and in-person training opportunities.
Is Drake Software training free?
Drake offers a number of free training resources, including on-demand webinars, tutorials, and practice materials.
Some classroom, CPE, webcast, or in-person training opportunities may have separate registration requirements or fees. Check Drake’s current training schedule for details about a specific course.
Document Management and Client Portals
Can I scan and store documents without using Drake Portals?
Yes. Drake Documents® can be used to electronically manage and store files without requiring clients to use Drake Portals.
Drake Portals serves a different purpose: it provides secure online document exchange and client-facing features such as uploads, messaging, checklists, and collaboration.
Are scanned documents automatically placed in the appropriate client or tax-year folder?
The exact behavior depends on your document workflow and configuration.
Drake Documents provides electronic document management, while Drake Portals can help identify, organize, and track client-uploaded documents. Automatic placement of scanned documents into a particular client or tax-year folder may depend on your scanner configuration, Drake Documents settings, and any additional tools being used.
If automatic document filing is a requirement for your firm, confirm your intended workflow with Drake Support before implementation.
Can I create custom folders within a client’s document area?
Drake Portals uses a folder-based layout, while Drake Documents provides document-management functionality.
The ability to create and organize folders in exactly the way you want may depend on whether you’re working in Drake Documents, Drake Portals, or a particular year-specific document area. Check the current product workflow for your specific use case.
How much document storage is included?
It’s important to distinguish between Drake Portals storage and files maintained locally through Drake Documents.
For Drake Portals, storage allowances depend on the product or bundle purchased. Drake’s published options include 5 GB with the standalone portal plan, while Practice EssentialsTM includes 25 GB and Practice Essentials PlusTM includes 50 GB. Additional storage is available for purchase.
Local Drake Documents storage, meanwhile, depends on your firm’s own storage environment and configuration.
Can Drake files be stored on an external drive?
Drake Tax desktop supports network environments and file backup functionality. However, firms considering removable external drives or nonstandard storage configurations should confirm that configuration with their IT provider or Drake Support.
This is especially important in multi-user environments where accessibility, backup procedures, performance, and data integrity need to be considered.
Multi-User Workflows and Integrations
Can multiple preparers use Drake Tax at the same time?
Drake Tax supports multi-user packages and network environments, allowing multiple preparers to work within the software.
Whether two preparers can simultaneously edit the same client return is a more specific workflow and data-locking question. Firms that require simultaneous access to the same return should confirm the current behavior with Drake Support.
Does Drake integrate with Textellent scheduling or calendars?
Drake Tax includes scheduling functionality, but a native Drake integration with Textellent is not currently documented on Drake’s public product pages.
If your firm uses Textellent, check with Drake or Textellent to determine whether a current integration, API, or import/export workflow is available.
Billing and Payments
Can Drake Tax create client invoices?
Yes. Client billing is included among Drake Tax’s practice-management capabilities. Firms can use Drake’s billing and fee workflows to produce client bills.
Drake Pay can also be used to request and accept payments through supported Drake products, including Drake Tax, Drake Portals, and Drake Accounting®.
Does Drake charge credit card processing fees?
Drake Pay supports credit card, debit card, and ACH payments, and transaction fees apply.
Because payment-processing rates can change, firms should review the current Drake Pay fee schedule rather than relying on an older percentage or flat-fee figure when estimating costs.
Electronic Signatures.
What happens if a client gets locked out of KBA E-Sign?
Knowledge-Based Authentication (KBA) uses identity-verification questions and is required for certain IRS e-file authorization forms, including Forms 8879 and 8878.
If a client fails the identity questions or becomes locked out, contact Drake Support for the appropriate next step rather than attempting to bypass the verification process.
Tax Preparation Scenarios
Can Drake Tax handle a backdoor Roth IRA?
Drake Tax supports a broad range of federal and state tax forms and schedules.
A backdoor Roth IRA generally involves reporting a traditional IRA contribution and subsequent Roth conversion, with Form 8606 often playing an important role in determining and reporting the taxable and nontaxable portions.
Because the correct treatment depends on the taxpayer’s circumstances—and issues such as the pro-rata rule can affect the calculation—tax professionals should follow current tax guidance and Drake’s applicable data-entry instructions when preparing the return.
Is Drake Software Right for Your Tax Practice?
Drake Software offers tax preparation, document management, portals, electronic signatures, payments, training, and practice-management tools designed for professional tax preparers.
When evaluating whether it’s the right fit, consider more than the number of forms or the annual software price. Think about how the software fits your firm’s day-to-day workflow; how you’ll migrate existing clients, train preparers, manage documents, collect signatures, accept payments, and collaborate across your team.
For workflows that depend on a particular integration, storage configuration, simultaneous return access, or highly specific document-management behavior, confirm the current functionality directly with Drake before making a purchase or implementation decision.
Product features, package availability, storage allowances, transaction fees, and pricing may change. Consult Drake Software’s current product, pricing, and support resources for the latest information.
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Disclaimers:
This article is for informational purposes only and not legal or financial advice.
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All other trademarks not owned by Drake Software, LLC that appear in this blog are the property of their respective owners
