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The Advantages of eSignatures for Tax and Accounting Professionals

The need for secure, safe, and legally binding documentation among entrepreneurs and owners of small businesses is driving the push toward digitalization. Additionally, the desire to increase workplace productivity and the attempt to reduce the amount of paper used in offices are contributing factors.

On the other hand, I’m going to talk about the growing trend of electronic tax signing software explicitly using electronic signature solutions as a topic of discussion in this article.

Here is an Example of Some Use Cases

The days are long gone when clients had to put off signing for several weeks or even months because they were required to print, fax, or come in person to their tax preparer’s office. Now, they only need to do one of these things.

The following is a list of some of the papers that can be sent and signed using free DocuSign competitors, including those that are typically required for tax and accounting purposes:

  • Contracts for the purchase of assets
  • Agreements to maintain confidentiality
  • Employment contracts
  • Engagement letters
  • Independent contractor agreements
  • Formation of an LLC
  • Using IRS Forms 8878 and 8879
  • Agreements on the continuation of practices
  • Contracts granting power of attorney

Using an E-Signature Solution: A Few Guidelines

Forms 8878 and 8879, which permit an Electronic Return Originator (ERO) to e-file tax returns to the IRS, could only be signed with a pen and paper before 2014. After that year, electronic signatures could be used.

New IRS guidelines implemented in March 2014 made it possible for taxpayers to sign documents electronically, which simplified the process of electronically filing tax returns for consumers for tax professionals.

When it comes to using eSignatures for clients, however, accountants and tax professionals must adhere to a few guidelines. First and foremost, they should select a trustworthy and safe electronic signature solution that complies with all of the IRS mandates for eSignatures, which include the following:

– Determining the identity of the individual who signed the paper;

– Protecting the confidentiality of data stored in electronic form;

– Producing a digital paper trail that includes the taxpayer’s computer login identifier and IP address, in addition to an audit trail that reflects the completion of the procedure by the signer; this step is essential.

The Advantages of eSignatures for Tax and Accounting Professionals:

The following is a list of some of the advantages of using online e signatures software to fill out and sign tax forms:

  • Customers get Refunds Faster

Since the Internal Revenue Service (IRS) receives an excessive quantity of tax returns each year, beginning in 2018, they have begun to accept electronic signatures on official tax papers and tax returns, which speeds up the process of issuing refunds.

  • No More Lost Documents!

Your many digitally signed files can safely be stored in one handy area when you use software that allows for electronic signatures. No more worrying about losing hard copies.

  • Save Money and Time

Within a few minutes, you can set up and send off your tax form. You are not required to travel long distances to meet with your customers or to wait for paperwork. You don’t need any print, sign, scan, or email back.

  • Client Data Storage

Free Docusign’s competitors place a high premium on the protection they provide for your customers. They can put all their faith in you to protect the confidentiality of their personal information, electronic record and signature disclosure. In addition, customers do not need to worry about the safety of their documents because they are all stored in the most secure data centers.

Conclusion

It offers tax preparers the ability to digitally sign and transmit tax papers in a safe and protected manner. Through the cloud, use SSL (Secure Sockets Layer) encryption technology.

This paves the way for tax professionals to transition into the digital environment confidently. It brings their practices with them.

Are you ready to use an electronic signature solution to make the upcoming tax season more manageable? Start a risk-free trial of an electronic signature service now with one of DocuSign’s competitors.

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