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Drake, Lacerte, UltraTax or ProSeries: Setting Up Tax Software So It Holds Up in Season
The short answer
Tax software runs most reliably when the shared data lives in one well-protected place, either a small office server or a hosted option your vendor supports, with every computer on the same version. Install each year's release early and test it, back up the data every day, and use MFA for e-filing and remote access, with remote work going through a VPN or the hosted service.
When tax software misbehaves in season, look at what’s around it first: a server that’s also someone’s desk computer, a data folder on a storage box the vendor doesn’t support, a workstation still on last year’s version, or a backup that stopped in January without anyone noticing.
Drake, Lacerte, UltraTax CS and ProSeries differ in the details, but they have the same weak spots. Sorting them out in the fall is far easier than in March.
Server, peer-to-peer or hosted: where the data lives
In a multi-user setup, all four programs keep a shared data location that every preparer’s computer reaches. There are three common ways to set that up.
Peer-to-peer. One office computer stores the shared files and is also used as someone’s workstation. Intuit describes this as one of the two network setups for ProSeries. It’s simple, but if that person restarts, updates or unplugs their computer, the whole office stops.
A dedicated server. A separate computer does nothing but hold the data. Drake recommends a dedicated server over peer-to-peer, and UltraTax CS lists the Windows Server versions it supports, in a full installation rather than Server Core. For a firm with more than a couple of preparers in the office, this is the setup we’d usually choose.
Hosted. The software and data run in a data center, and staff connect over the internet. It suits firms with several people working from home, as long as your vendor supports the host. Intuit lists hosting options for Lacerte, while Drake supports one named hosting provider and says other cloud hosts and virtual servers aren’t supported.
One thing to avoid with all of them is a network storage box (NAS) as the data location. Drake and Lacerte don’t support it, and UltraTax CS doesn’t either unless the device can be controlled as a Windows host.
Test each year’s release before everyone gets it
Every program has a new release each tax year, and the system requirements move with it. Drake’s current list, for example, supports Windows 11 and Windows Server 2019, 2022 and 2025. Check the new requirements before you install, since an older server or workstation may need replacing first.
Then roll it out in this order:
- Install the new release on one computer, early.
- Run a sample return all the way through, including printing, scanning and e-filing.
- Fix anything that breaks, then install it on the server and the remaining workstations together, so everyone is on the same version.
- Keep last year’s program working for amended and late returns.
Our tax season IT checklist has the rest of the fall jobs that go with this.
Multi-user and network basics
Shared tax data and Wi-Fi don’t mix well. UltraTax CS doesn’t recommend wireless networks, and Drake’s network setup guide notes that wireless is generally slower and less secure than a wired connection. Put the server and every preparer’s computer on a cable.
Beyond that, give each preparer their own login rather than a shared one, set permissions on the shared data folder so only staff who need it can reach it, and keep the server for the tax data and nothing else.
Backups for the data and the settings
Back up the shared data folder every day during season, and keep at least one copy off site where someone who gets into your network can’t change or delete it. Publication 4557 also asks you to encrypt backed-up files. Include the program’s shared settings and options too, so a rebuilt server doesn’t lose your firm’s defaults.
Then prove it works: restore a client’s return to a test location before January, and again partway through season.
Remote work without exposing the server
IRS Publication 4557 treats multi-factor authentication (MFA) and a VPN as the minimum standard for remote access to a firm’s network. In practice that means staff working from home connect through a VPN that asks for MFA, or through a hosted setup your vendor supports.
Never open the office server or remote desktop straight to the internet, and don’t let staff copy client files onto home computers. Publication 4557 also notes that some firms issue laptops to remote staff so they control what’s on them, which we’d recommend where you can.
If the office’s internet line goes down in season, remote access goes with it. A backup internet line takes over by itself.
MFA inside the tax software
MFA isn’t only for remote access. Publication 4557 notes that tax software for professionals now offers it, and asks you to use the most secure option available. UltraTax CS needs MFA, through the Thomson Reuters Authenticator app, to transmit returns, with at least one staff member set up on a phone that meets the requirements. Set it up for every preparer before season, not on the first busy morning.
Whatever you set up here belongs in your firm’s written security plan. Our guide to writing a WISP with IRS Publications 5708 and 4557 covers that.
How we help in season
We look after tax software for CPA and tax firms across Orange County: installs and the yearly release, the server and network it runs on, remote access, and backups we test. See how we support accounting and tax firms, or book a free IT check-in and we’ll look at how your setup will hold up this season.
This guide is general information, not legal advice. For questions about your firm’s specific obligations, talk to your attorney or compliance advisor.
