Many tax firms know their tax preparation process is not as efficient as it should be—and it’s costing them money and opportunities.
Highlights
- There are enormous opportunities for efficiency in the automation of data entry.
- Reviewers bill time at a higher rate, therefore tax workflows should prioritize review efficiency
- Your revamped tax process should consider the convenience of both staff and clients.
Many tax firms know their tax preparation process isn’t as efficient as it could be, but many hesitate to take action. That’s why we’ve created this simple guide outlining how firms can successfully approach planning a digital 1040 tax transformation.
Taking a strategic approach to planning a digital 1040 tax transformation is crucial because it prepares staff and clients well before the official rollout and allows firms to sidestep preventable errors. It also lets firms enjoy the promised ROI that accompanies such upgrades.
Tax season is hard enough. You don’t need to make it harder on your team and clients with outdated technology and inefficient processes. Let’s examine what a successful 1040 tax process should really look like.
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Planning a 1040 digital tax transformation for your firm
Automating data entry
One of the foundational steps in a successful 1040 digital tax transformation is automating data entry to eliminate manual work and reduce risk. Tax preparers are too talented, and frankly too expensive, to spend half of every workday inputting data.
Advanced scan and populate software is among the most powerful preparation tools a firm can employ — and SurePrep1040SCAN is a cut above the competition. It recognizes more tax forms and form fields than alternative solutions and auto-verifies OCR data on 65% of scanned documents.1040SCAN even has three distinct versions that allow firms to combine software and services according to their needs.
1040SCAN also bookmarks and organizes source documents into a standardized work paper index that follows the flow of the tax return. It integrates with UltraTax CS, GoSystem Tax RS, CCH Axcess Tax, and Lacerte, streamlining data entry, simplifying filing of advanced returns, and providing seamless integration from preparation to review.
Revamp the review process
Reviewer time is highly valuable, and reviewing poorly documented work papers is inefficient. That’s why it’s critical for your 1040 digital tax transformation to emphasize reducing review time — and thereby boosting profitability.
SPbinder streamlines the review process by tracking what and when changes were made, and by whom. This solution helps you to minimize review time, standardize work paper preparation, and increase staff leverage.
SPbinder makes it easy to manage digital workpapers — and, in conjunction with 1040SCAN, automatically organizes them into a standardized index that follows the flow of the tax return.
Rethink client service
If your firm regularly deals with unresponsive clients who love to procrastinate, their reluctance might stem from the tools your firm gives them. When implementing a client portal into your digital 1040 tax transformation, it’s important to look for a solution that both integrates with your tax software and caters to your clients’ technology habits.
That’s why SafeSend makes the client experience easy, condensing all collaboration and communication into one streamlined interface. Document gathering, e-signing, questionnaires, K-1 distribution, invoicing, and delivery are all included in a step-by-step process that makes sense to clients. The end result: a more engaged, responsive client base.
A talent management advantage
Clearly, the stresses of tax season do not help in your efforts to keep your most valued employees happy and productive… and to continue to grow your team. Firms that invest in planning a digital 1040 tax transformation not only improve efficiency but also gain a competitive advantage in attracting and retaining top tax talent.
Leveraging tools that help ease the heavy workload of busy tax season means that staff are less stressed and have the time to focus on more fulfilling work. The right tools can also help any firm address these areas by creating better efficiencies so you can put your money to better use elsewhere in the practice. This can include making investments that improve the long-term financial health of your firm, compensation for employees, or providing your employees with the opportunity for growth at your firm.
Planning a 1040 digital tax transformation for your firm
Client expectations are evolving. Tax professionals no longer want manual data entry to be part of their job description, and top talent is migrating to firms that have automated those processes. Firms that went paperless without planning and implementing a fully streamlined, digital 1040 tax process continue to face grueling workload compression. The technologies exist to solve these challenges, and they’re quickly becoming the industry standard.
If you want to go even further in-depth on 1040 digital tax transformation, check out our exclusive white paper and learn about the impact of AI and automation on each stage of the tax process.
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See how your practice can automate preparation, reduce review time, enhance analysis, and simplify collaboration.
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