Tax season is just a few months ago, and now, you can use an electronic signature for signing the forms 8878 and 8879. However, even after six years, many tax accountants and consultants do not prefer electronic signature apps. Realistically, if you are one of them and relying on manual and paper-bound documentation, you are wasting a huge time, and with that, increasing the chances of errors and omissions in the documents. Moreover, you are investing more money while comparing this manual documentation with the electronic signature online form, offered by the IRS. Overall, it means that you are creating frustration for you, your employees, and your customers simultaneously. Now, we will discuss which types of challenges, you can face while using paper-based tax processes here:
Clients are expecting more!Mostly, the clients are tech-savvy and love mobile applications. According to research, more than 83% of the tax accountants think that their clients are more advanced now than five years ago. They want their tax returns should be filed within no time. However, using paper copies for submitting tax returns does not help them save time. Value-based billing is the need of the time that encourages them to go for flat fees for services. Therefore, accountants need an electronic signature app to fulfill the expectations of their clients.
Security and privacyThe client's information should be confidential and protected from all types of forgery and fraud. Sending tax forms through email, fax, or courier can be risky. Therefore, to meet the challenge of fraud, scam, or forgery, the accounting experts recommend a digital signature that can protect you more efficiently through numerous identification and authentication techniques.
TimelinessThe turnaround time is the most important concern for the clients. Therefore, to be very precise in giving a realistic timeframe to them, it is important to minimize the turnaround time. However, a realistic turnaround time is key in the whole process. For administering contracts more authentically and within the defined time, electronic signature apps are excellent. Moreover, you can omit errors, improve the security of the documents, and make complicated forms easier with the electronic signature app.
Contract ManagementWhen a business agrees on specific terms and conditions to provide services to its clients, electronic signatures can drive the whole process efficiently. Through electronic signature, you can also observe the whole procedure of sending and receiving the agreement with the digitally signing option. This process is speedier than the paper-bound documentation process. We must understand that engagement letters are the most important section through which you can change the workflow of the accountants. Through this procedure, you can also make the contract legally binding and enforceable.
Benefits of electronic signatureThe regulatory authorities like IRS and SEC have already accepted digital signature and allowed all the businesses to adopt them. The most prominent accounting firms have incorporated this technology as well to improve the submission and reporting procedure while submitting the tax returns. While talking about the key benefits, some of them have been mentioned here:
- You can improve the productivity of your business.
- Streamlining if all legally binding client agreements and engagements become easier.
- To eliminate manual processing and paper-bound documentation, digital signature has a key role.
- The turnaround time for filing a tax return can also be minimized.
- You can mitigate the risks that are involved in all business operations.
- Through automation and tracking compliance, you can gain the visibility of client engagement. Moreover, the clients can keep an eye on the whole process of filing tax returns.
- With the help of an e-signature app, you can also improve the efficiency and effectiveness of the administration staff.