Drake price increase

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#1
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I was notified yesterday on October 18th, 2021 that the pay per return pricing increased 50%! This is outrageous as had I renewed prior to October 01, 2021 the old prices would have prevailed. I called and spoke to a plethora of people who all in effect told me too bad!

I am planning on shopping other alternatives as I am a semi retired CPA preparing less that 20 returns.

So much for Phil Drake being price conscious and competitive.
 

#2
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44% increase, but $645 base price for 20 returns is still only $32.25 per return. Hopefully you'll make up that difference of $200 with price increases relating to the stimulus packages! UltraTax with 100 returns was quoted to me at 2,500.
 

#3
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Not surprising. Given the price increase I guess it means that the private equity investment went through (viewtopic.php?f=10&t=20621)

I'm a former user of Drake but would say that even at the increased price you're still getting good value.
 

#4
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You're not going to find a cheaper and reliable tax prep program, overall. If I prepared as few and simple returns, I would gladly pay Drake's increased fees even though I think their software is archaic.
 

#5
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Interesting. I paid $1,225 back in May for the 2021 tax year Drake Tax software unlimited package to take advantage of the $400 discount (normal price is $1,625).

Be interesting to see if the unlimited package gets a hike as well. I assume it will.

What exactly is the new base fee for PPR? Website is currently stating $345 which includes 10 returns. Each additional return is $29.99
 

#6
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Wouldn't be surprised if we see a 50% hike on the unlimited package next year (~800 give or take).

That's going to hurt but I understand given the private equity investment.

I'm sure that will give some users incentive to re-evaluate their compliance software options. Good winter project...
 

#7
CathysTaxes  
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Glad I already subscribed for next year.
Cathy
CathysTaxes
 

#8
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So... a little off topic. I am cutting my CPA practice by 60 percent and will only be working on clients for whom I manage money.

I use Proseries, pay about 8K for the total package as I have clients in many states, multi state K1's, multi state corps etc.

For those of you using Drake, you give it a thumbs up? I will only be doing about 80 personals, a few of them multi state. About 15 1120S and 10 1065, some multi state.

I am gonna suck it up ans stay with Pro series for 2021 BUT after that.... I may consider Drake. Probably on the cloud.

Thoughts?
 

#9
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If there is one issue with Drake it's that some entries do not flow automatically to other forms, even where you'd think it would be obvious. I'm getting used to it, though, after one full season and half a season using it last year for returns that TaxAct couldn't handle properly.

It's been five years since I used Proseries and, even then, we just used it for entity returns. As I recall, doing a trust return required entries to be made in a certain order for the tax liability and K-1 to come out correctly. Is it still like that?
 

#10
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southparkcpa wrote:Thoughts?


It's worth it IMO for your number of returns each season.

As long as you carefully read the return notes in the software and read the instructions for any form that is new or less familiar to you, you'll be fine.

Drake has less "bumper guards" than higher priced software, and might cause headaches for more complex returns. BUT, for the majority of situations it's more than adequate.

As long as you know how your clients' returns "should look", the entire battle is just going to be driving down the learning curve of Drake software and getting familiar.
 

#11
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CornerstoneCPA wrote:You're not going to find a cheaper and reliable tax prep program, overall. If I prepared as few and simple returns, I would gladly pay Drake's increased fees even though I think their software is archaic.


+1

It's old technology with no bells and whistles and it doesn't handle complex situations so well - but it gets the job done and it's still cheap...

Plus you don't want to go through the hassle of converting, especially with the Covid breaks, etc. This is always a much larger time cost than one would think.

Still worth it, IMO.

I was caught up in the "Tax Works" nightmare with a new practice. It helped me to make mistakes when I wasn't very experienced to begin with. Very stressful.
 

#12
ATSMAN  
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Most folks who use Drake already renewed by the May deadline so any price increase will impact the 2022 version. I seriously doubt there will be a 50% increase but I am sure it will go up next year. If the new price is still in the ballpark with ATX etc. I don't see too many people jumping ship IMHO.
 

#13
MikeH  
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southparkcpa wrote:For those of you using Drake, you give it a thumbs up? I will only be doing about 80 personals, a few of them multi state. About 15 1120S and 10 1065, some multi state.

Thoughts?


SouthParkCPA:

I have a small business practice, semi-retired but planning on working with the clients that I have, prepare about 30 returns a year. All California only, nothing complex. I had a client, I was the part-time CFO, very-skilled Tax CPA did the S corp return, with me in his office, using Lacerte. Took about a day. So I've "seen" Lacerte.

For simple returns, Drake wins hands down. For the S Corp - several wealthy shareholders, one "sort-of" eccentric :-) , family was involved, multiple states, etc... I could see where that return could be difficult to do in Drake.

I spent one month, each of 2 years, on "loan" from the Ernst & Young Audit group, to their tax department. Learned to track basis, calculate AGI separate from the input forms back then, etc. So I have a check on Drake. In Drake, (probably all software) if you are doing both the S Corp and individuals, Drake automatically pulls the K1s over...but it doesn't bring everything over. Without your own basis worksheets, you might miss this.

Drake has one day update classes at major hotels around the US. They've been superb. This year, they've cut back, but there's one in Charlotte on 11/19. $200, 8 hours CPE. First half is a good tax update - not Drake specific - and the afternoon they go over changes in the software - often with at least 1 loud applause that tells me Drake's "finally" added something the users have been asking for, for years. Sit-down lunch is included. There are vendors that set up tables in the break room. The afternoon class would give you some idea of how Drake works.

I don't know if they allow non-customers at these things, but you might want to contact Education@DrakeSoftware.com to find out. You can tell Christine Reynolds that Mike Hartfield referred you.

BYW, I'll be at their Las Vegas class on Dec. 18 if anyone from this forum will be there.
Mike Hartfield
Bullhead City, Arizona
Cell: 818/433-5359
 

#14
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MikeH wrote:
southparkcpa wrote:For those of you using Drake, you give it a thumbs up? I will only be doing about 80 personals, a few of them multi state. About 15 1120S and 10 1065, some multi state.

Thoughts?


SouthParkCPA:

I have a small business practice, semi-retired but planning on working with the clients that I have, prepare about 30 returns a year. All California only, nothing complex. I had a client, I was the part-time CFO, very-skilled Tax CPA did the S corp return, with me in his office, using Lacerte. Took about a day. So I've "seen" Lacerte.

For simple returns, Drake wins hands down. For the S Corp - several wealthy shareholders, one "sort-of" eccentric :-) , family was involved, multiple states, etc... I could see where that return could be difficult to do in Drake.

I spent one month, each of 2 years, on "loan" from the Ernst & Young Audit group, to their tax department. Learned to track basis, calculate AGI separate from the input forms back then, etc. So I have a check on Drake. In Drake, (probably all software) if you are doing both the S Corp and individuals, Drake automatically pulls the K1s over...but it doesn't bring everything over. Without your own basis worksheets, you might miss this.

Drake has one day update classes at major hotels around the US. They've been superb. This year, they've cut back, but there's one in Charlotte on 11/19. $200, 8 hours CPE. First half is a good tax update - not Drake specific - and the afternoon they go over changes in the software - often with at least 1 loud applause that tells me Drake's "finally" added something the users have been asking for, for years. Sit-down lunch is included. There are vendors that set up tables in the break room. The afternoon class would give you some idea of how Drake works.

I don't know if they allow non-customers at these things, but you might want to contact Education@DrakeSoftware.com to find out. You can tell Christine Reynolds that Mike Hartfield referred you.

BYW, I'll be at their Las Vegas class on Dec. 18 if anyone from this forum will be there.


Thank you MIke. I really appreciate that!!!
 

#15
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Depending on where in NC you are, it could be worth the trip to Franklin. Drake is headquartered there and you might meet some of the developers.
Because on T.A. ten was the most you were allowed
 

#16
MikeH  
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Tenletters:

If you are referring to taking the Update School in Franklin, they are either full, or Drake cancelled them. They don't show on the Update School webpage. Neither does Sacramento, which was a choice when I first looked. One other location might also have disappeared.

It would be nice, when Drake does this, to mark "cancelled" or "Full," rather than simply have them disappear. Strange things are happening @ Drake ... maybe it's mostly Covid-related.
Mike Hartfield
Bullhead City, Arizona
Cell: 818/433-5359
 

#17
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SumwunLost wrote:If there is one issue with Drake it's that some entries do not flow automatically to other forms, even where you'd think it would be obvious. I'm getting used to it, though, after one full season and half a season using it last year for returns that TaxAct couldn't handle properly.


Does Drake provide a list of entries that do not flow automatically?
 

#18
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Taxalmancer wrote:
Does Drake provide a list of entries that do not flow automatically?


Not that I'm aware of. That is why I keep two spreadsheets for all clients to check against the tax return. Mind you, that is something I picked up from my first employer in this country, who used Prosystem Fx so it doesn't just apply to the lower-priced software.
 

#19
MikeH  
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Taxalmancer wrote:Does Drake provide a list of entries that do not flow automatically?


One advantage to reading this Forum is that most, if not all. of these situations are discussed here from time-to-time... Maybe we should try to start a thread to gather them all. For California, it might be lengthy.
Mike Hartfield
Bullhead City, Arizona
Cell: 818/433-5359
 

#20
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I think starting a thread just for Drake's idiosyncrasies is an excellent idea.
 

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