Tax Planning Software features explained
for Financial Planning
Applications that help advisors identify tax-efficient investment strategies, tax-loss harvesting opportunities, and integration of investment decisions with clients' overall tax situation.
Every feature we track for Tax Planning Software products, with a description of what each one means.
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.