Tax Software Buyer’s Guide

Keywords

vendor consolidation, switching costs, software evaluation

Abstract

Tax preparation software products are like comfortable old shoes: Even if theyre a little dated, youd prefer to keep them rather than go through the discomfort of breaking in new ones. But, like it or not, because the number of tax software vendors continues to shrink, many CPAs are left tax software orphans, forced to buy new brands next year and to invest significant time learning them—and then possibly going through the whole routine again the following year if the new brands get the ax.

Professional tax preparers dont buy tax products—unlike most software—from their local Egghead retailers. These are professional products and theyre complex, which is why most CPAs tend to stick with what theyre used to. When they have no choice but to spend considerable time checking out new products, they often put evaluation copies through severe testing before deciding to buy.

Original Publication Citation

“Tax Software Buyers’ Guide.” Journal of Accountancy (with S. Zarowin, R. Worsham, and M. Romney), September, 1997: 49 - 77.

Document Type

Peer-Reviewed Article

Publication Date

1997

Publisher

Journal of Accountancy

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

Link to Full Text

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