Selecting professional tax preparation software is an essential activity for tax preparers and accounting firms dealing with federal and state tax forms. Drake Tax software offers various tools for professional tax preparation services, including electronic filing options, return management, and many other resources aimed at tax professionals. Nevertheless, the first-time user must perform some initial setup procedures to get started with the preparation and filing of returns.
In this blog, we will look into a step-by-step setup procedure for Drake Tax setup. This procedure involves verification of system requirements, software installation, configuration of your firm and ERO, registration of EFIN, addition of preparers, customization of the settings, importation of previous year's data, and taking advantage of Drake Tax training opportunities.
Step-by-Step Drake Tax Setup for New Users
Prior to completing any tax returns, there are several settings for Drake Tax that need to be completed. This will help to avoid disruptions as you begin working with your clients.
Check System Requirements and Prepare Your Information
Begin by ensuring that the system that you plan on using satisfies the current requirements for Drake Tax. As far as the desktop version is concerned, the 2026 requirements for Drake Tax are Windows 11, 2.0GHz CPU or equivalent, 8GB RAM, about 4GB of hard drive space, 1920 × 1080 display, and high-speed Internet access. Drake mentions that its systems do not support ARM-based processors.
The following items are also needed – your Drake Software log-in, account number, serial number, and e-filing information. For establishing a tax preparation firm, ensure that EFIN of the business among other details are prepared in advance before e-filing configuration.
Download Drake Tax
Current program versions can be obtained from the Download Center of Drake Software. Login to the Drake Software Support site and select the appropriate Drake Tax download for the particular tax year.
Use of the current download available on Drake’s support site ensures that the correct version is installed along with the necessary updates. It is also recommended by Drake that your account number and serial number be handy before installation.
Install and Activate the Software
Open the downloaded installation package and proceed with the installation steps as prompted on screen. You will have to agree to the Drake Software license terms and also specify the correct installation folder.
In case you have the licensed version, provide the account number and serial number as required. The installation might also provide for state programs and supporting components as needed based on the release date and time. Once the software is installed, start Drake Tax and let the program set itself up.
Configure Drake Tax for E-Filing and Your Firm
Program installation is just the start of the process. Before you can submit your tax return via e-filing, it is necessary to set up information regarding the electronic return originator, firm, EFIN number, and preparers. Drake’s Setup Assistant is intended to help you set up this information.
Complete the ERO and Account Setup
Under Drake Tax, select Setup, then Electronic Filing & Account Information (ERO). The above section is where one can enter account information needed for the e-filing process, which includes the Drake account number, EFIN, and e-file password.
According to Drake, ERO setup needs to be done before being able to e-file tax forms, download program updates, and access the e-file database. Once one enters all the information, one can test the e-file setup using the Test Account feature.
Register and Confirm Your EFIN
The EFIN is one of the key elements in establishing the e-file system in a professional tax practice. According to Drake’s onboarding guidelines, a valid and active EFIN is needed for the purposes of e-filing taxes using Drake Tax.
For registering your EFIN with Drake, you should provide the IRS e-File Application Summary as per Drake’s registration procedure. After completing the registration of the EFIN, the next step would be confirming the e-file in the firm setup. According to Drake’s recent guidelines, it is possible to confirm the EFIN under the firm setup screen.
Set Up Your Firm Information
After setting up ERO, set up your firm data by going to Setup > Firms. Enter all the necessary details about your firm, such as the firm's name and address.
According to Drake, there are certain fields that have to be entered during the setting up of your firm. In addition, certain states may require more contact information. It is important that the active firm is configured for e-filing prior to submitting returns.
Add Users, Customize Settings, and Prepare for Tax Season
After the initial setup for firm and e-filing setup is done, it is time to set up accounts for preparers and customize Drake Tax for your firm’s process.
Add Preparers and Users
If there are multiple people who will be using Drake Tax, you must navigate to Setup > Preparers and Users, and choose the option “Add.” Enter all the necessary information of the user or the paid preparer, which should include the correct name, username, PTIN where necessary, and security permissions.
The existing documentation from Drake says that it is mandatory to have a username and the password is set up by the user on logging into the system for the first time. In case of paid preparers, it is mandatory to have a valid PTIN in case of individuals who prepare or help prepare federal tax returns in exchange for payment. Assign security permissions based on the roles of the individual.
Customize Your Drake Tax Settings
Drake Tax’s Setup Assistant contains a feature called Quick Setup which is available to first-time users and also allows the setting up of various categories including electronic filing, accounts, firm, user, and other settings.
After you have finished setting up all the necessary features, you should look into the following options for customizing your tax season workflow: data entry, printing, preferences, pricing, letters, and others.
Convert Prior-Year Data and Test Your Workflow
If you are converting from another tax preparation program, Drake offers conversion utilities for supported programs. There are different methods of converting as well as requirements for conversion, depending upon the program being converted from. Drake says that some of the tax preparation programs require that their own software be installed in order to complete the conversion, whereas others do not have such requirement.
After you have converted your files, examine a few of your clients' files instead of believing that everything has been transferred accurately. This should be done by reviewing the taxpayer information, forms, prior year information, state information, and other necessary items.
Drake Tax can become much simpler to set up when doing so is done methodically. This means first ensuring that the system requirements have been met and the correct version has been installed, followed by configuring your ERO, firm, EFIN, preparers, security, and any other preferences.
If you are switching from another tax software solution, data conversion and training should be among your preparations. These are things that should be done before tax season hits its peak.
The Fino Partners provides accounting and tax-related support for businesses and accounting professionals that need assistance with recurring financial responsibilities. Professional support can be particularly useful when bookkeeping records need to be organized before tax preparation or when firms need additional assistance managing accounting workflows.
