Tax Planning Software features

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Applications that help advisors identify tax-efficient investment strategies, tax-loss harvesting opportunities, and integration of investment decisions with clients' overall tax situation.

We ask vendors to mark their product against our feature list. It is not available for all products and in some cases we have derived data from publicly available sources. The list of features follows. Vendors can add a further 10 key features of their own.

Analytics & Reporting

Advanced analytics, metrics, and customizable reporting capabilities.

Aggregation of Analytics Across Clients: View tax metrics and performance in aggregate across client base.
Benchmark Comparison Tools: Compares client portfolios and tax outcomes to relevant benchmarks.
Custom KPI Dashboards: Key performance indicators dashboards are configurable per user.
Custom Report Builder: Allows users to build bespoke reports with selected fields and filters.
Drill-down Analysis: View detailed analytics down to transaction or tax lot level.
Export to PDF/CSV/XLS: Export all reports and analytics to common file formats.
Historic Reporting Archive: Maintains an archive of past analytics and reports.
Scheduled Report Delivery: Supports automated generation and delivery of reports on a schedule.
Tax-Efficiency Metrics: Specific metrics measuring portfolio tax efficiency over time.
Visualizations & Charts: Suite of charting tools for tax and portfolio analytics.

Client Communication & Collaboration

Tools that enable effective and compliant advisor-client interaction on tax matters.

Alerts & Notifications: Configurable email or in-app tax deadline reminders.
Client Feedback Mechanism: Enable clients to provide feedback within the portal.
Commenting and Annotations: Leave comments and notes directly on reports or scenarios.
Customizable Email Templates: Create templates for standardized client communications.
Document Upload by Clients: Clients can upload documents securely to the advisor platform.
E-signature Integration: Collect required signatures within the platform.
Interactive Plan Visualizations: Tools for interactive presentation of tax planning outcomes.
Meeting Scheduler: Built-in tools for scheduling tax review meetings.
Secure Document Sharing: Share sensitive files securely between advisor and client.
Shared To-do Lists: Collaborative task lists between advisor and client

Integration & Data Management

Features that facilitate data flow and connectivity between the tax planning software and other advisor or client systems.

API Integration: Offers programmable interfaces for connecting to other software systems.
Account Aggregation: Aggregates data from multiple financial accounts (brokerage, retirement, bank, etc.).
Audit Trail of Data Changes: Maintains records of data updates for compliance.
CRM Integration: Integrates with advisor CRM systems for seamless workflow.
Cloud Data Storage: Stores data in the cloud for remote access and backup.
Custom Data Mapping: Allows mapping of external data fields to internal software fields.
Data Refresh Frequency: How often external account or position data are refreshed.
Direct Custodian Connectivity: Connects directly to custodians for real-time client data.
File Import/Export Capabilities: Supports importing and exporting of client and investment data files.
Real-Time Syncing: Data synchronizes in real time with other platform elements.

Security & Compliance

Features to protect sensitive data and ensure compliance with relevant data and privacy laws.

Audit Logging: Monitors access and action history for compliance purposes.
Automatic Session Timeouts: Automatically logs out users after inactivity.
Data Residency/Localization: Support for storing data in required jurisdictions.
Data Retention Settings: Customizable retention periods for sensitive client data.
End-to-End Encryption: Encrypts data at rest and in transit across the system.
Incident Response Plan: Comprehensive documented plan for responding to security incidents.
Multi-factor Authentication: Requires multiple authentication methods for system access.
Regular Security Audits: Platform is audited for security vulnerabilities on a regular basis.
SOC 2 or Similar Certifications: Holds third-party security and data handling certifications.
User Access Controls: Granular permissions for managing roles and privileges.

Support & Training

Service and training options to ensure effective adoption and use of the tax planning software.

Community Forums: Access to online discussion boards or peer support.
Context-Sensitive Help: In-software help that adapts to current screen/function.
Dedicated Customer Success Manager: Assigns a point of contact for account success and troubleshooting.
Feature Request Feedback Loop: Clients can request new features and track implementation.
Knowledge Base Access: Comprehensive online documentation and FAQs.
Live Chat Support: Immediate in-platform chat for tech and strategic support.
Onboarding Assistance: Personalized onboarding for new users and firms.
Phone and Email Support: Multiple support channels including phone and email.
Training Certification Programs: Offers formal certification for product proficiency.
Webinars and Training Resources: Regular online events and resources for training.

Tax Compliance & Reporting

Functions ensuring tax rules adherence and generating necessary tax documents and reports.

Amended Returns Support: Supports creation of amendments to prior-year tax returns.
Automated Tax Form Generation: Creates electronic or printable versions of required tax forms (e.g., 1099, Schedule D).
Capital Gains and Income Reporting: Summarizes annual capital gains, losses, and income by account or tax lot.
Client Tax Summary Reports: Generates summary reports of client tax positions for review.
Compliance Rule Updates: Automatically updates for new federal and state tax law changes.
Document Retention Management: Supports secure storage and retention of tax documents per regulations.
Error Checking & Reconciliation: Provides automated checks for inconsistencies or compliance errors.
Regulatory Change Alerts: Notifies users of significant changes in tax law or filing requirements.
State and Local Tax Calculations: Supports compliance for all relevant state and local tax rules.
Tax Filing Export: Exports data for use with tax filing software or professionals.

Tax Scenario Modeling & Forecasting

Tools to simulate, compare, and forecast tax outcomes under different assumptions and scenarios.

Collaborative Scenario Sharing: Enables sharing modeled tax scenarios with clients or team members.
Customizable Tax Rates: Supports entry and adjustment of custom federal, state, and local tax rates.
Estate & Gift Tax Simulation: Models estate and gift tax exposure based on current and hypothetical portfolios.
Goal-Based Forecasting: Integrates tax effects into financial plan goal projections.
Historical Scenario Review: Allows comparison of past plan recommendations with current scenarios.
Legislation Impact Modeling: Analyzes tax impact of proposed or potential legislative changes.
Monte Carlo Tax Simulations: Uses stochastic modeling for tax forecasting under uncertainty.
Multi-Year Tax Forecasts: Provides forecasts of tax liabilities over multiple future years.
Sensitivity Analysis: Assesses how sensitive outcomes are to changes in tax assumptions.
What-if Scenario Analysis: Allows users to test tax results under different scenarios and plan changes.

Tax-Efficient Investment Strategies

Capabilities for analyzing and implementing tax-smart allocation and investment tactics.

Asset Location Optimization: Optimizes asset placement across taxable and tax-advantaged accounts.
Automated Rebalancing Tax Analysis: Assesses tax costs associated with portfolio rebalancing.
Capital Gains Minimization Tools: Identifies trades and strategies to minimize realized capital gains.
Customized Strategy Recommendations: Provides tailored, client-specific tax strategy advice.
Multi-year Tax Projection: Projects multi-year tax liabilities under proposed strategies.
Projection of After-Tax Returns: Shows expected net returns after incorporating anticipated taxes.
Roth Conversion Analysis: Models the tax consequences of Roth IRA conversions.
Short-term vs Long-term Gain Recognition: Distinguishes and tracks gains for relevant tax treatment.
Tax Drag Analysis: Quantifies the annual tax impact (drag) of different portfolios.
Tax-Efficient Withdrawal Sequencing: Advises on withdrawal order from different account types to minimize taxes.

Tax-Loss Harvesting

Features related to identifying and executing opportunities for tax-loss harvesting in investment portfolios.

Automated Tax-Loss Harvesting: Automatically identifies and suggests trades to realize losses for tax benefits.
Cross-Account Harvesting: Ability to identify tax-loss harvesting opportunities across multiple client accounts.
Frequency of Harvesting: How often the software scans and implements tax-loss harvesting opportunities.
Harvesting Threshold Customization: Advisors can set minimum loss thresholds for triggering tax-loss harvesting actions.
Integration with Portfolio Management: Seamlessly integrates with existing portfolio management tools and workflows.
Real-Time Opportunity Alerts: Notifies users immediately when new tax-loss harvesting opportunities arise.
Reporting of Harvested Losses: Provides detailed reports of realized losses for compliance and strategy review.
Tax Impact Simulation: Simulates the projected tax impact of harvesting specific losses.
User Override of Harvesting Suggestions: Allows advisors to override or approve tax-loss harvesting recommendations.
Wash Sale Detection: Detects potential wash sales and provides alerts or recommendations.

User Interface & Usability

Elements that make the software accessible, efficient, and easy to use for advisors and clients.

Accessibility Features: Tools for visually impaired or other accessibility needs.
Bulk Edit and Batch Actions: Ability to apply changes across multiple clients or portfolios at once.
Client Portal: Dedicated portal for clients to view their tax planning results and reports.
Customizable Reports: Users can build and customize their own reports.
Dashboard Customization: Users can configure dashboards to suit their workflow and preferences.
Guided Workflows: Step-by-step walkthroughs for common tax planning processes.
Mobile Access: Accessible via mobile devices or dedicated mobile apps.
Multi-language Support: User interface available in multiple languages.
Real-time Help and Guidance: Integrated documentation or chat support for immediate assistance.
Search and Filter Functions: Easily search for and filter clients, accounts, or transactions.

Features in Tax Planning Software

for Financial Planning