TaxDome Review

The Good, The Bad, and The Ugly

Tech Meets Tax

TaxDome, first launched in 2017, has emerged as a significant player in the world of software for accounting and tax professionals. This tax-practice management system boasts a blend of user-friendly and robust functionality that has changed my practice. Read on to hear my experience. 

User Experience and Interface

One of TaxDome's standout features is its user-friendly interface. My clients, especially those who are not tech-savvy, appreciate the straightforward access to the platform’s features. The TaxDome Client mobile app, available for iPhone and Android devices, optimizes access in our highly mobile world: clients can easily photograph documents, send messages, and manage their information on the go.

Communication

TaxDome integrates email management within its platform, which helps reduce the clutter and confusion traditionally associated with multiple email accounts. For example, within TaxDome, I can pull up a client’s account and see emails between them and my staff members. While this optimizes communication, one drawback I have noticed is that emails are often delayed by several hours (or days in some cases). Many TaxDome users have reported this issue; I, too, have experienced this sporadically. 

TaxDome’s secure messaging feature is one of my favorites. It allows you to communicate with your clients in an instant message-like style. TaxDome has recently added the capability to add SMS messaging for an additional fee. I have no intention of adding this feature; I find secure messaging sufficient. Plus, I’d prefer not to engage in SMS for business purposes, as too often it gives the expectation of an immediate response. 

Automation and Workflow

The platform offers extensive options for workflow automation, although this aspect requires a significant investment of time and resources to utilize fully. For instance, implementing automated workflows could potentially improve operational efficiency, notifying clients of their return's progress at various stages. Personally, I do not wish to have a “pizza tracker” type of notification for my clients. For me, multiple emails are annoying and a waste of time. (Curious as to how I communicate processes to my clients? My initial email and engagement letter set out our time frame for responses.) 

Some TaxDome users have reported issues with over-communication when the automated systems are not configured correctly or malfunction. While TaxDome provides substantial training for these features, the training experience is less than ideal: lessons are somewhat tedious and materials overly simplistic.

With its automation features, many claim that TaxDome can take the place of an administrative assistant. I don’t see that in my practice. I’m more likely to trust a person over software. This, again comes down to the type of practice you have. I could see this more needed in a high volume practice. 

Pricing and Support

TaxDome is competitively priced,  a major advantage for many users. Despite a recent price increase, the cost remains reasonable with long-term contracts. The support network, primarily facilitated through online communities like Facebook, is sometimes helpful, though the quality can vary. It's important to note that the support team is based outside the US, which might be a concern for some users regarding data privacy and access. Another area of concern is the level of censorship I have seen in their Facebook group. If you post anything that they deem to be critical of the product, the post is removed. 

Integration and Data Management

On the downside, TaxDome has limitations in terms of software integration and data management. The lack of an open API restricts its ability to interact seamlessly with other applications, which can be a significant hurdle in today's interconnected environment. 

There is also no easy way to export your data should you decide to end your use of the service. Additionally, the platform's file storage system does not support versioning, which makes it less ideal for long-term document storage. Some users have experienced files disappearing or deleted files reappearing. Personally, I do not have a level of trust in their data storage. I run software that mirrors all data uploaded to Taxdome to Google Drive. (This could also be done with OneDrive, Sharefile, and various others).

 In a recent social media post, a TaxDome user asked a question about backing up the “Z” drive (the drive letter TaxDome uses in Microsoft Windows). Some responded this was unnecessary because they believed TaxDome backs up your data for you. Please understand—this is not the case. Always follow your internal policies when it comes to storing and securing your data and that of your client. Never rely on a single vendor for this. 

Concerns

There have been some security concerns about the product, especially some of its beta features, like tax transcripts. I look forward to an in-depth security review of the product by Brad Messner at Financial Guardians. (Check out their substack!)

When I originally demoed TaxDome, I was pleased that they offered a Mac version of their desktop client. This was unique since the majority of software in the accounting and tax world is for Windows only. However, after signing up, I soon learned they would stop supporting Mac. I expressed my dismay about this not only online (the post was removed), but even now, in person, at every opportunity, when TaxDome has a vendor booth at a conference I am attending. I feel this was a bait and switch. (Now, I know the majority of you are using Windows, and some of you are saying, “Get a PC!”  But that is not the point.) 

A major area of concern I have is that TaxDome tries to do too much. Instead of refining and polishing the features they have, they tend to release new features that sometimes break. They are notorious for making changes during tax season, which can be problematic. With their service in use worldwide, they don’t focus solely on the US market, and this is likely why they don’t take into consideration the American tax season. 

How My Firm Uses TaxDome

I often say and mean it—we all have different types of firms with different clients, priorities, and styles. My main use of TaxDome is as a secure portal for clients to upload their documents, retrieve their tax documents, and electronically sign forms. I also use the secure chat feature, and my clients have really enjoyed this feature. Even those who are typically not technically inclined have had no problem using the portal and mobile app. This is one reason I have been hesitant to look at other software: nothing is more draining than onboarding clients to a new system. 

When a prospect books a discovery call with us (paid, of course) using Calendly, they get an automated email asking them to create a TaxDome account and upload any documents for us to review. From that point on, we communicate via secure messaging in TaxDome. 

We don’t use TaxDome for engagement letters, as I don’t like the way it works or its aesthetics. Instead, we use Ignition. Once the proposal is accepted in Ignition, I have a zap that creates a series of tasks in Asana. We have used Asana as our task management software for several years, and it works well. Its automation has been a time saver. (Note: While TaxDome does tasks, I find its interface clunky and slow.) 

Organizers work well in TaxDome. I created my own, a half-page document that asks clients a series of questions, which will prompt further discussion when needed. Clients hate long organizers, and mine has been well received. Electronic signatures with KBA (knowledge-based authentication) work well, but I have had a few clients who were unable to answer the questions correctly. KBA is an additional cost of $1 per KBA signature. 

Final Thoughts

TaxDome offers a robust solution for tax professionals looking to streamline their operations and improve client interactions. Its strengths in user interface, communication tools, and pricing are notable. However, potential users should consider the limitations in terms of data export, integration capabilities, and some operational glitches. 

Overall, for those looking to enhance their tax practice's efficiency while maintaining a high level of client interaction, TaxDome presents a viable option, provided you are prepared to navigate its shortcomings. With any software, it’s important to have a clear understanding of your process before using the software—many software programs claim to solve an issue, but make sure you actually need to solve a problem.