How Electronic Signature Solutions Streamline and Simplify the Tax Filing Process

During tax season, taxpayers and their accounting experts must track all financial transaction details and prepare final financial statements to submit each tax filing process return for the previous year. Typically between January 1 and April 15 of each year, tax season is a busy period for tax preparers and accounting experts.

Usually, individuals and a few start-ups file their tax documents themselves. However, most SMEs and big firms rely on accounting professionals to prepare and file their financial reports for the needed year to enhance any possible financial deductions and highest possible return.

With advancements in digital technologies, filing and submitting tax returns has become much easier over the years. Unlike with traditional ways of signing paper documents with wet-ink, taxpayers can now affix their digital signatures onto the necessary forms electronically from anywhere.

The electronic software helps automate the tedious, manual tasks and allows accountants to save time and money while also successfully surpassing each client’s expectations. This type of software offers more convenience for accountants and finance experts, as well as their teams. Adopting eSignature software like SutiSign, accountants, and taxpayers can remove the hassle and costs involved in manually printing, collecting signatures, and faxing legal documents.

An electronic signature solution automatically verifies the identity and ensures the recipient has authenticated themselves before accessing the documents, per the Information Technology Act, 2000.

In this article, we discuss the perks of now signing tax return documents electronically.

Speed-up the Tax Filing Process

Collating paper documents, filing reports, and submitting tax returns using traditional paper-based methods typically takes a few months to complete. Plus, searching and recreating lost documents or inaccurate data delays this process even further. If you collect signatures on tax documents electronically, you are no longer required to print, sign, or send each copy via the mail or fax.

Meaning electronic signature solutions are the best way to fix the cumbersome tax-filing process. Rather than manually distributing paper documents, you can quickly and securely send the necessary legal, tax filing documents to the clients within only a few minutes. The software allows you to manage all this tedious work in a few simple clicks, reducing paper’s overuse throughout the entire organization.

Also Read: Goods and Service Tax – How Does The Framework and the Law Work?

Increase Convenience

Every taxpayer should have a glitch-free and convenient tax filing process. But with paper-based processes which involve wet-ink signatures are tedious and consumes too much time. However, with the digital signing process, the client can electronically view, sign, and submit their tax returns, thereby allowing you to bypass the process of printing and signing every document. As a result, taxpayers can quickly offer their returns, and accountants can efficiently serve more customers during a narrow time slot. It saves their money and time and prevents any hassle in manual processes.

Boost Data Security

With cybersecurity threats increasing, the IRS has gone the extra mile to ensure the full security of electronically signed tax returns and other financial documents. To sign documents digitally and submit tax returns via online, taxpayers must adhere to specific requirements. According to the IRS, certain types of electronic signatures are more secure than others. For example, some advanced digital signature solutions offer a higher-security level compared to basic eSignatures.

Digital signature solutions allow taxpayers and accountants to send and receive tax return documents online confidentially. It also ensures all sensitive details like financial records and social security numbers protect from cyber threats. While choosing an electronic signature solution, be aware of the different types of eSignature solutions available to use on tax return documents, and purchase a solution which best suits those requirements.

Also Read: Payment Processor vs. Payment Gateway: Which one do you need for your Business, and How much does it Cost?

The Bottom Line

Gathering paper documents, scanning, and searching for or needing to recreate lost documents plus chasing down wet-ink signatures for those paper copies is a tedious and hectic process. Fortunately, eSignature software solutions allow authorized parties to sign documents electronically from anywhere, at any time. Removing the essential to print, sign, scan, and send paper documents through couriers. It ensures any sensitive information is safe and helps taxpayers instantly sign their tax documents with confidence.

The software lowers the potential for errors, thereby driving up client engagement, saving significant time, and increasing productivity during tax season. Suppose you are still relying on those traditional processes. In that case, it’s the right time to adopt a new advanced eSignature solution to switch to the digital transactions to make the process of signing tax returns hassle-free. Research various eSignature software solutions available in the market and purchase a solution that offers the structures and functionalities you need to streamline the entire tax filing process.