Ease the pain! Tax-preparation software can be a lifesaver for your business - includes a related article evaluating eight tax-preparation packages

Home Office Computing, Feb, 1992 by Margie L. Haddon

However, if you want to continue with your professional tax preparer, but you have a rudimentary knowledge of income taxes and you're basically organized, you might save money by using tax-prep software. In such a scenario, you'd enter your return into the computer and then go to your accountant with the printouts. This would save the preparer time, and therefore his or her services would cost you less.

EASY OR HARD?

Q: Doest it take long to install the software?

A: It took me less than 10 minutes to install each program, including unpacking the box and reading the installation instructions--and I'm a CPA, not a technical wizzard. None of the programs made me type more than one word to start the installation process.

Q: Do tax-prep programs demand much storage space?

A: Disk requirements range from 1.3MB for EasyTax to 4.5 MB for RapidTax. Generally, the more forms and information included in the program, the more room you'll need on your hard drive. You can always remove the program after tax season, however.

Q: I'm very busy. Are these programs hard to figure out?

A: After installing each program, I plunged right in to prepare a return, since a tax-preparation program is basically simple software. I didn't have to refer to any of the manuals--the menus and on-line help gave me all the information I needed in order to complete the returns.

All of the 1991 versions of the programs now offer an interview feature. You answer the interview questins, and the software automatically determines which forms you need to fill out. When using TurboTax Personal, for instance, I felt as if I were talking with a person. After the interview led me through questions on income and itemized deductions, it todl me, "We now have the information that makes up your taxable income. Let's consider credits that can reduce your tax." (I think I've made that same statement to some of my clients.) The program then went on to ask me questions that would help it figure out which credits I was eligible for. TaxCut was one of the easiest to learn. The introduction (which you can print and refer to as you go along) gives you step-by-step instructions on preparing your return.

If you're familiar with preparing tax returns and prefer to enter data directly on the forms, that's an option with all of the programs. If you use Windoes or a Macintosh, you'll especially like TurboTax for Windows or MacInTax. With both programs, the actual IRS tax forms are displayed on-screen, and you can have several forms on the screen simultaneously.

Q: What happens if I need help?

A: Your first source is the integral help feature found in all of the programs. But if you can't find what you're looking for online or in the program's manual, you can get more information from the publishers. All of the programs give free technical support, with most of them offering increased hours during tax season. EasyTax, for example, is open for help on weekdays from 9:00 a.m. to 9:00 p.m. beginning January 2 and on weekends beginning February 29. You can receive help over the phone or you may fax your question. All but J.K. Lasser also have technical support available via modem, usually through a service such as CompuServe. If you feel you might need a lot of support, consider one of the products from ChipSoft, which offers a toll-free fax line for technical questions.