The world is changing every day, and things are moving towards more digital methods.
Everyone wants a quicker and more convenient way to do their jobs, and CPAs and accountants are not left out. E-filing has gained a lot of popularity over the years, and this is not surprising given its many advantages. Now, e-filing isn’t a foolproof method, and it has its drawbacks, but a large number of professionals are turning to it these days and for a good reason too.
What is E-filing?
E-filing is a method of transferring files like tax returns and other tax documents to the Internal Revenue Service and the Social Security a=Administration online, without having to fill the paper form and mailing them. The e-filing method started in 1986, and since then, it has spread widely and is now the most preferred method of filing by most accountants and CPAs.
Pros of E-filing
Ease of use
Paper filing can be a time-consuming, wasteful venture, especially when you have to go through several forms. You have to get the paper forms filled and then attach any other forms or documents that are required before mailing it.
With e-filing, every form gets filled, organized, and sent within minutes online. There is no need to move piles of paper around, and the CPA doesn’t have to waste frantic minutes searching for any papers in case they get mixed up in a pile.
Using software to file tax returns, leaves less room for error, and even if there is one, it will be easier to correct. Good e-filing software identifies any inaccuracies immediately so they can be corrected before they are submitted.
Perhaps the biggest reason why people switch to e-filing is the speed of processing. When you file online, your documents get processed within half of the time it takes to process a paper record, and the payments are received faster too.
Online storage allows people to store large amounts of data and information on hard drives and disks instead of heaps of paper and physical files.
Cons of E-filing
As convenient as e-filing makes storage, there is still a high risk of losing all your information all at once or having people’s private information entering the wrong hands. The best way to avoid a situation like this is to back up the files as much as possible, and use software that protects the data.
Some e-filing systems don’t allow attachment of additional forms or documents, so paper will have to be used alongside the e-filing software.
Not everybody is technologically aware enough to use computers or software properly, so there may be some issues with moving to e-filing.
E-filing is the fastest and most convenient method of filing tax forms and documents just like using e-invoicing software for creating e-invoices, so it is no surprise that more accountants and CPAs are moving to it. Even though it has some drawbacks, e-filing has proven to be a better alternative to the older method, and it isn’t going anywhere soon.