Tax season can be stressful, especially for tax professionals who manage dozens or even hundreds of client returns. Accuracy, speed, and compliance are critical, and even a small mistake can lead to penalties or unhappy clients. This is where professional tax preparation software like Lacerte Software comes into play.
Lacerte Software is one of the most trusted and powerful tax preparation tools used by CPAs, accounting firms, and professional tax preparers. In this complete guide, we’ll explain what Lacerte Software is, how it works, its features, benefits, system requirements, and why many firms choose Lacerte hosting to improve performance and accessibility. We’ll also briefly compare it with alternatives like Drake hosting to help you make an informed decision.
What Is Lacerte Software?
Lacerte Software is a professional tax preparation software developed by Intuit. It is designed to handle complex tax returns with accuracy and efficiency. Unlike basic tax software meant for individuals, Lacerte is built specifically for tax professionals who deal with individual, business, corporate, partnership, estate, and trust returns.
Lacerte is well known for its calculation accuracy, form coverage, and diagnostic tools that help reduce errors before filing. It is especially popular among firms that handle complicated tax situations, such as multi-state returns, high-net-worth clients, and detailed business filings.
Who Uses Lacerte Software?
Lacerte Software is ideal for:
- Certified Public Accountants (CPAs)
- Accounting and tax firms
- Enrolled Agents (EAs)
- Professional tax preparers
- Firms handling complex or high-volume tax returns
If your practice goes beyond simple W-2 filings and requires advanced tax logic, Lacerte can be a strong solution.
How Does Lacerte Software Work?
Lacerte follows an interview-style workflow, meaning the software asks clear, guided questions and automatically fills the appropriate tax forms based on your answers. You don’t need to memorize tax codes or manually calculate figures—the software does most of the heavy lifting.
Once data is entered, Lacerte:
- Automatically calculates taxes
- Runs diagnostics to detect errors or missing information
- Generates ready-to-file federal and state forms
- Supports electronic filing (e-file)
This process saves time and helps professionals file accurate returns with confidence.
Key Features of Lacerte Software
1. Powerful Tax Calculations
One of Lacerte’s biggest strengths is its calculation engine. It handles complex scenarios like depreciation, AMT, multi-state taxation, and business deductions with precision.
2. Comprehensive Form Coverage
Lacerte supports a wide range of tax forms, including:
- Individual (1040)
- Business (1120, 1120S)
- Partnership (1065)
- Trusts and estates (1041)
- Multi-state filings
This makes it suitable for firms offering multiple tax services.
3. Built-In Diagnostics
Lacerte’s diagnostic system checks returns for errors, inconsistencies, and missing data before filing. This reduces the risk of rejected returns or IRS notices.
4. Time-Saving Automation
Features like automatic data flow, client data rollover, and batch processing help firms save hours during tax season.
5. Integration with Accounting Tools
Lacerte integrates smoothly with other Intuit products like QuickBooks, making data transfer easier and reducing manual entry.
Benefits of Using Lacerte Software
Accuracy You Can Trust
Lacerte is known for its high level of accuracy, which is crucial when dealing with complex tax laws and frequent regulatory changes.
Designed for Complex Returns
If your firm handles detailed or high-value tax returns, Lacerte offers more flexibility and depth than many entry-level tax software options.
Improved Productivity
Automation, diagnostics, and streamlined workflows allow tax professionals to complete returns faster without sacrificing quality.
Professional-Level Support
Lacerte offers technical support, training resources, and updates to keep your software compliant with the latest tax laws.
Lacerte Software System Requirements
Lacerte is a powerful application, which means it requires a strong IT setup when installed locally. Typical requirements include:
- Windows-based operating system
- Adequate RAM and processor speed
- Secure data storage and backups
- Reliable network for multi-user access
For many firms, managing these requirements in-house can be costly and time-consuming. This is why many professionals now choose Lacerte hosting instead of local installation.
What Is Lacerte Hosting?
Lacerte hosting means running Lacerte Software on a secure cloud server instead of installing it on a local computer or office server. Users access the software through the internet using a remote desktop or browser-based connection.
With Lacerte hosting, your software and data are stored in the cloud, while you can work from anywhere.
Benefits of Lacerte Hosting
Anytime, Anywhere Access
With Lacerte hosting, you can access your tax software from home, office, or while traveling. This is especially helpful for remote teams and flexible work environments.
Enhanced Data Security
Reputable hosting providers offer advanced security features such as firewalls, encryption, regular backups, and controlled access.
Better Performance
Cloud servers are optimized for tax software, offering faster processing speeds even during peak tax season.
Easy Collaboration
Multiple users can work on the same files without performance issues, making teamwork easier and more efficient.
Lower IT Burden
You don’t need to worry about server maintenance, updates, or backups—the hosting provider manages everything.
Lacerte Hosting vs Local Installation
| Feature | Local Installation | Lacerte Hosting |
| Accessibility | Office only | Anywhere |
| IT Maintenance | In-house | Managed |
| Security | Depends on setup | Advanced |
| Scalability | Limited | Easy |
| Remote Work | Difficult | Simple |
For modern tax firms, cloud hosting often makes more sense.
Lacerte Software vs Drake Software
Another popular tax preparation tool is Drake Software, which is often considered a more budget-friendly alternative.
Key Differences:
- Lacerte Software: Best for complex returns, large firms, and advanced tax scenarios
- Drake Software: Ideal for small firms and simpler returns at a lower cost
Many firms that use Drake also move to the cloud using Drake hosting, which provides similar benefits to Lacerte hosting, such as remote access and better security.
While Drake hosting is a great option for smaller practices, firms dealing with high-complexity returns often prefer Lacerte for its depth and accuracy.
Who Should Choose Lacerte Software?
Lacerte Software is a great choice if:
- You handle complex individual or business tax returns
- You need multi-state filing capabilities
- Accuracy and compliance are top priorities
- Your firm is growing and needs scalable software
- You plan to use Lacerte hosting for remote access
If your firm handles basic returns only, a simpler solution may be enough. But for advanced tax work, Lacerte stands out.
Final Thoughts
Lacerte Software is a powerful, professional-grade tax preparation solution designed for serious tax professionals. Its advanced features, reliable calculations, and comprehensive form coverage make it a trusted choice for firms handling complex tax scenarios.
When combined with Lacerte hosting, the software becomes even more effective—offering flexibility, security, and improved productivity. While alternatives like Drake hosting work well for smaller practices, Lacerte remains a top choice for firms that demand accuracy and performance.
If you’re looking to modernize your tax practice, reduce IT headaches, and improve client service, Lacerte Software—especially in a hosted environment—can be a smart long-term investment.
