Modern tax automation systems are replacing the manual, administrative drudgery that has plagued firms for decades. These advances will not only transform the quality of life for tax preparers but also allow firms to deliver even higher levels of quality and service to their clients.

The Need for Tax Automation

Tax firms have traditionally worked too many hours, leading to burnout and high turnover. As a result, the labor market has been tight. Firms have been competing with one another to attract and retain staff. Many have scrambled to hire seasonal workers or arrange for offshore and near-shore staff. Compounding the problem, fewer people are joining the accounting ranks because of its reputation of long hours and tedious administrative work.

Digital Tax Organizers and Digital Tax Delivery of Returns Save Hours per Return

Digitizing organizers and tax delivery dramatically reduce the administrative overhead burden for firms. These important advances stand to immediately reduce wasted time and money. 

Benefits of Digital Tax Organizers

• Easy to Prepare: Modern solutions read PDF tax organizers from existing tax return software, creating personalized digital returns for clients.
• Faster for Clients to Complete: Clients can use any device, and unneeded questions are skipped.
• Automatic Reminders: The system keeps clients on deadline, eliminating the need for the firm to chase clients.
• Progress Tracking: Firms can monitor each client’s progress in real-time, , allowing them to start returns before all documents are submitted.
• Organized Documents: The system ensures documents are neatly organized and ready for processing.

Benefits of Digital Tax Return Delivery

• Personalization: The software reads the tax return and prepares personalized walkthroughs for each client.
• Automatic Signature Placement: Digital signature boxes are auto-placed on Forms 8879 and State electronic authorization forms.
• Automatic Reminders: The software reminds clients to sign.
• Compliance: Clients verify each step, including reviewing their returns and understanding payments to be made, helping firms ensure compliance.

Integration with Existing Tax Software

Tax automation packages are designed to be compatible with most major tax software, ensuring minimal disruption when added to existing workflows.

Key Benefits of Tax Automation for Tax Preparers

Implementing tax automation brings several key benefits to tax preparers and their firms: 

• Reduces overtime: Automation saves critical hours to every tax professional.
• Reduces Need for Seasonal Staff: Efficiency gains reduce the need for temporary workers.
• Direct Cost Savings: Digital organizers are cheaper than paper organizers. Delivery and return postage alone cost over $7 per document. With labor, paper, envelopes, and toner, the average paper return costs over $10 each. Digital organizers can cost as little as $5.

• Faster Turnaround Times and Increased Client Satisfaction: Clients appreciate the speed and convenience of personalized experiences they can handle from any device. Firms are rewarded with faster response times. 
• Better for Taxpayers of All Ages: Most clients prefer digital experiences over thick paper organizers, especially younger clients. 

Implementing Tax Automation in Your Practice:

Choosing the right software is critical. Consider these criteria: 

• Works with Your Existing Tax Software: Ensure the software is compatible with your existing software for minimal disruption.
• Easy to Use for Clients: The software should be accessible on phones, tablets, and PCs, and include features like a mobile document scanner.
• Single System for Organizers and Returns: Ensure clients can login and easily find their documents later without confusion.

Tax automation is set to revolutionize the tax profession. It’s already enhancing employee and client satisfaction, boosting profits, and allowing firms to deliver even more value-added services. The best part is that adopting these innovations is easy and accessible to firms of every size.

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