No matter who I talk to, it seems that getting your taxes done is usually not a pleasant experience. The process is often long and tedious, and involves gathering repetitive information, year after year. The good news is that with the recent addition of bar codes to several tax forms, the experience can be far shorter and consist of fewer errors during the process…that is, if your accountant utilizes the efficient tax solution I will describe below.
Recent studies have indicated that the manual input of information contained in your W2 form takes, on average, about 20 to 30 minutes to input into an accountant’s tax preparation software. To input data from a K1 form it might be another 20 minutes. Then, after spending all this time, there is still a 5% average data input error rate across the industry.
With the IRS announcement of the addition of bar codes to K1 and W2 forms, and a more efficient tax solution, tax preparers can now use a scanner to instantly input data contained on these forms into their tax preparation software and do so with 100% accuracy. For those clients that don’t have a K1 or W2 form, a scan of the back of a client’s driver’s license can accurately input a client’s name and address instantly in most states, once again reducing the time required to process a tax return. In turn, this practice yields happier clients and fewer mistakes. Who wouldn’t want to take advantage of this win-win solution?
To learn more, check out my video clip below!