Preparing for a Paperless Tax Season
By Kenneth McCall
December 2006
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Your Files: In the old days a printed copy of your complete accountant’s copy of the tax return, along with all workpapers, copies of the client’s source documents, notes and other information went into the paper file in your file room. Today, for many firms, that paper file repository has been replaced by its digital equivalent. Some firms are simply using shared network drives and filing digital images of the documents into a folder structure, which largely mirrors the layout of the paper files. Others have adopted a true document management system which allows for faster search, easier retrieval, and more flexible storage. All major tax preparation software applications allow the direct printing of returns to PDF file format, and several vendors provide means of scanning source documents into bookmarked and indexed PDFs. These two files then constitute the primary document storage for your tax return.
Your Client: The third output of the system, the copy you provide for your client, is often the most paper intensive component. The traditional client delivery model consists of a full printed paper copy of the tax return usually assembled in a fancy binder. These materials, coupled with the time required for assembly, can add up to thousands of dollars over the course of a tax season. Is there a better way? A growing number of firms would answer “Yes, there is!” Some of these firms burn PDF copies of the tax return and supporting documents to a CD. We know at least one firm that uses a small “autorun” HTML file on a CD that presents a marketing message to the client who receives it. Upon insertion into the computer, the CD presents a picture of the firm’s office and an audio message from the managing partner. It then presents two links with instructions to “click here” for the client’s copy of the tax return or the supporting documents. The other option for paperless delivery makes use of a client portal, a secure page on the firm’s website or a third party site, which allows the client to log in and find his or her tax return. These can be downloaded, printed, emailed, or otherwise handled as the client desires.
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