Full TaxDome vs Canopy Tax Review

Jan 2, 2024 | TaxDome

The landscape of tax software is constantly evolving, and tax professionals are always seeking the best solutions to streamline their processes. Two of the most well-known tax platforms available today are TaxDome and Canopy Tax.

When deciding which tax platform to use, the most common question most accounting professionals and enrolled agents ask is, “Which is better?” This article will share a comprehensive review of both to illustrate which aligns better with your and your client’s tax needs and help you answer that question yourself.

Jessica is an Enrolled Agent who used Canopy Tax for two years before switching to TaxDome in 2020. This was not an easy decision for her, and she wished this type of article had been around when she was trying to choose one over the other. Luckily, reader, you do!

Let’s begin looking at TaxDome versus Canopy Tax to determine which fits your needs best.

TaxDome vs. Canopy Tax

Pricing

In any business, cost is always a major factor when choosing one product or service over another. So, let’s take a look at the price difference between TaxDome and Canopy Tax.

TaxDome: $600 per firm user per year

TaxDome offers a plan that costs $600 per firm user per year, or $50 per month per user. This pricing is based on a three-year subscription plan, paid upfront. If you opt for a two-year subscription, the cost is slightly higher at $700 per year. For a one-year subscription, the price goes up to $800 a month. All plans are flat rates that include the complete features of TaxDome and unlimited contacts. TaxDome offers a free 14-day trial.

Canopy Tax: Depends on the number of contacts and features

On the other hand, Canopy Tax’s pricing varies depending on the number of contacts a firm has and the features the firm chooses to subscribe to. All Canopy plans require Client Engagement, its base platform. This is free for up to 250 active contacts. Additional contacts are sold in increments of 50. For example, if you require a plan accommodating 300 active contacts, you’ll pay $14 monthly for the base plan.

Every feature you add, such as Document Management or Workflow, entails additional payment. If you have 400 active contacts and have one user each for Document Management, Workflow, and Time and Billing, you’ll spend $134 a month, billed annually.

Simply put, TaxDome offers a flat monthly rate that gives users complete access to all their features and functionalities. In contrast, a Canopy Tax user starts with a base plan they can customize with additional features (and costs), depending on their needs.

Automations comparison

Automations are mechanisms that make a system operate and move forward in a pipeline or process automatically. Automations are triggered by specific actions taken by you or your clients. Both TaxDome and Canopy offer automation to their users.

TaxDome: Various automation capabilities available

TaxDome allows you to create a standard pipeline with automations. It offers the option to copy a pipeline from their library or create your own pipeline from scratch. You can automate different pipelines such as creating a Corporate Tax Return pipeline.

While a user can create their own pipeline with automations, it can take a lot of work to get started on your own. This is why Workflows for Tax Pros exists! We help you optimize your TaxDome workflows without spending countless hours studying and setting up the pipeline. We’re experts at this, so we guarantee we’ll be able to help you automate your workflows in no time.

Canopy: WorkFlow Pro automations

Canopy offers an optional subscription to WorkFlow Pro, a tool that helps “manage processes, projects, and productivity.” WorkFlow Pro offers templates and automations that help users streamline their processes. These include custom reports and formulas, task assignments, and work lists.

Again, Canopy offers optional automations that you can modify to fit your needs. These types of automations are not available in their basic Client Engagement plan, so you’ll have to add them on top of your base plan.

Usability comparison

For new users, useability is a key factor. Let’s look at which platform is easier to use.

Both TaxDome and Canopy are described as generally easy to use. They even get the same score of 4.5 out of 5 regarding ease of use on softwareadvice.com. Users on other review sites mentioned finding Canopy easier to set up and use. TaxDome has a steeper learning curve, and users need more guidance to set up and use. However, TaxDome has more features, which makes becoming familiar with the platform worth it. Both platforms are easy to use, and users can become comfortable with both programs with practice.

Customer support comparison

When you need help, how quickly and easily you can contact customer service is critical. No one wants to be left hanging when looking for someone to help and guide them through a problem or issue.

Here’s a side-by-side comparison of the customer support each platform offers:

TaxDome                 Canopy
24/7 Knowledge Base Yes Yes
Blog Yes Yes
Webinars Yes Yes
24-Hour Chat Support              Yes No. Chat support is available, but it is not available 24/7.
Chat with Live Rep No Yes
Phone Support Yes Yes
Online Support Yes Yes
Certified Advisor Program Yes No
Live Daily Demo Session Yes No
In-Person Training No Yes

 

In summary, both platforms offer comprehensive customer support. However, some clients have called Canopy’s customer service “great,” while TaxDome’s was described as “hit or miss.” It seems while TaxDome offers more avenues to get in touch with them, customer service representatives of Canopy are more knowledgeable and helpful. This is another reason you should work with Workflows for Tax Pros – they lessen the need to contact customer support.

Client portal comparison

Again, for you and your clients, ease of use is critical. TaxDome and Canopy offer client portals that allow users to create customized, white-label portals that clients can interface with.

Canopy users report that it is easy for their clients to upload their documents to the client portals. TaxDome users also report the same feedback. In terms of client portals, there’s not one program noticeably better than the other.

Electronic signatures

Do both platforms support KBA signatures? The short answer is yes, they do.

TaxDome offers unlimited e-signatures integrated on a user’s customized client portal. Clients can review, approve, and e-sign documents from any device. As a TaxDome user, you can enable KBA signatures to ensure your client’s e-signature adheres to IRS standards for an additional $1 per client.

Canopy also offers eSign, an IRS-compliant e-signature that uses KBA. Using eSign, users can sign IRS forms 8878 and 8879 electronically. Canopy also offers customized client portals, similar to TaxDome.

Integrations comparison

TaxDome connects with several popular software programs. It integrates with other tax programs, payment providers, schedulers, and more. These integrations make the whole TaxDome process more seamless. You can also sync it with your email. Some programs it integrates with are TaxWise, QuickBooks, Acuity Scheduling, Outlook, and more.

Canopy also integrates with several software programs and apps, such as Zapier, QuickBooks, and Gmail. They aim to improve accuracy, eliminate double entries, and decrease switching between programs.

TaxDome and Canopy offer integrations with some of the most popular tax tools. However, it seems that TaxDome offers more integrations. Whatever your current software is, integrating it with either TaxDome or Canopy shouldn’t be an issue.

Billing and Invoicing

When and how you get paid are critical parts of any type of job. Canopy accepts client payments through Canopy Payments, which allows clients to pay via credit card on the client portal. Canopy can make one-time payments or automate recurring payments. It can also handle refund payments, partial payments, and scheduled payments. Canopy Payments charge 2.95% plus $0.20 per transaction.
TaxDome allows building invoicing clients and collecting payments into workflows. Users must connect their Stripe or CPACharge account to TaxDome, and then users can accept credit cards, Debut Carb, and eCheck (ACH) for payments. The platform can also track billable hours.

Client Communications

Both TaxDome and Canopy integrate with various email platforms that allow you to email clients from inside the platform and keep client communications in one place.
You can create a new email or task from an email on Canopy’s Global Inbox, allowing you to view, send, and manage emails directly on Canopy. You can also consolidate emails directly on a client’s record, create contacts, and calendar events from an email.

TaxDome offers integration with any email provider, which helps boost productivity. Teams can collaborate using a single mailbox with a shared overview of all email threads. Communication from a client stays in one place, so everyone has visibility on that client. TaxDome also offers automated email communication, which can send emails automatically when triggered by an action.

Reviews for both platforms don’t mention any problems in the client communications aspect.

Website Builder

TaxDome users can customize their client app and portal, including their domain URL. If a user doesn’t have their own website yet, TaxDome offers an easy-to-use website builder with more than 200 templates specifically for tax, accounting, and bookkeeping business needs. The best part is that it’s free of charge.

TaxDome clearly wins in this aspect, as Canopy doesn’t offer this feature at all.

Tax Forms and Tax Filing

Remember that TaxDome and Canopy are both practice management software tools for CPAs, bookkeepers, and accounting forms. They aren’t tax programs, so users don’t file client taxes through the platform. Both programs help their users manage their bookkeeping and accounting clients and, in doing so, help them prepare for filing taxes, but they aren’t used to actually file the taxes.

TaxDome is compatible with tax programs like Drake, TaxWise, and Lacerte, among others. On the TaxDome website, it says, “TaxDome becomes a printer on your computer, so you can print from any software and transfer it to TaxDome.”

Canopy doesn’t specifically mention being compatible with other tax programs. However, Canopy talks about offering a tax resolution compliance solution. It helps simplify the tax resolution process through pre-filled forms and automatic plan calculations and can automatically update associated collection calculations.

When it comes to actual tax forms and filing, it seems Canopy has an edge when it comes to tax resolution, but TaxDome offers more integrations to popular tax programs.

Security Comparison

All of TaxDome’s customer interactions are encrypted with Secure Socket Layer (SSL). It has an SSL certificate that uses 256-bit encryption to protect client data, and the platform has also received an A-grade from Qualys SSL Labs regarding security.

Canopy uses similar security measures to keep client data safe. So far, both TaxDome and Canopy are secure and have not been in the news for any hacking incidents, privacy, or security issues. When it comes to security, either platform will work for you.

So, which is better?

So, we’ve covered almost all aspects of TaxDome and Canopy, including its features, ease of use, and security, to help you make the right decision. Overall, TaxDome is the more popular platform between the two. It offers more features and at a lower price. However, when it comes to ease of use and customer support, Canopy seems to be the winner.

So, which is better?

In our opinion, TaxDome still has an edge over Canopy.

First, pricing is a major deciding factor for most small and medium business owners, and TaxDome is significantly more affordable than Canopy. The best thing about TaxDome is that it offers all its features at a fixed price. There’s no need to mix and match or think about what kind of feature or add-on you need to include in your basic plan. While Canopy is easier to use, TaxDome offers comprehensive customer support that can help clients become familiar with the program.

Overall, TaxDome wins.

This is where we come in. We can help you make the most out of TaxDome with our program that enables you to automate your workflows and increase your clients and, ultimately, your profits.

Contact Workflows for Tax Pros and get started today with our program today. Learn more and streamline your business today!

Features, pricing and details in this blog are as of December 2023.

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Hey Tax Pro!

Hi! We’re Jamie and Jessica, the dynamic duo behind Workflows for Tax Pros.

With a combined 20 years in business, we’ve learned a thing or two about building successful, streamlined businesses that enable professionals like you to build lives they love.

Our goal with this blog is to provide Tax Pros like yourself resources to build a profitable, peaceful tax practice that you can scale without creating more stress!

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