Staying up to date with the latest technologies in tax preparation helps your business remain competitive and efficient. Unfortunately, a few myths prevent some tax preparers from embracing one of the most helpful innovations in tax preparation: cloud-based tax software. Let’s debunk some of the most prevalent myths that deter preparers from switching to cloud-based software.
What is cloud-based software?
Cloud-based software operates on remote servers, allowing users to securely access their applications and data from virtually anywhere with an internet connection. This differs from desktop-based software, which is downloaded and stored on an individual computer.
Myth: Cloud-based software is more prone to data breaches.
Fact: Cloud-based software uses advanced encryption to protect your client’s data.
At TaxSlayer Pro, we are committed to ensuring the security of your clients’ sensitive information. We invest heavily in cybersecurity to protect your client’s data. The chances of a data breach are often lower with cloud-based software than with traditional methods, where data is typically stored on a single local device with limited security protocols or where sensitive paper documents can easily get lost or fall into the wrong hands. Additionally, the cloud continually backs up your data, ensuring your data won’t be lost if your computers are lost or damaged.
One of the most common misconceptions about cloud-based software is that it is inherently less secure than traditional desktop software. In reality, most cloud-based solutions, such as TaxSlayer Pro Web, are equipped with advanced encryption and security measures that often exceed what many small tax firms can provide. These measures include multi-factor authentication, data encryption in transit and at rest, and regular security updates.
Myth: Electronic signatures obtained through the cloud aren’t legally binding.
Fact: E-signatures are just as legally binding as handwritten signatures and are recognized by the IRS.
For over two decades, the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA) have recognized e-signatures as legally binding. They provide the convenience of digitally signing documents and the same legal weight as their handwritten counterparts.
Moreover, the IRS officially accepts e-signatures for a wide range of tax documents, making it more convenient for clients to sign and submit important tax forms without the hassle of paper documents. This saves time and minimizes the risk of losing records in the mail.
Myth: Clients want to avoid putting their information in the cloud.
Fact: More clients than ever are demanding the convenience and security of cloud-based software.
The assumption that clients are wary of cloud-based tax software is outdated. More and more clients are embracing the convenience and security of the cloud. They appreciate the ability to upload and review their tax documents from anywhere and often expect this flexibility.
Using cloud-based professional tax software allows you to meet your clients’ evolving expectations and streamline the tax preparation process. For example, TaxSlayer Pro Web integrates seamlessly with the TaxesToGo® mobile app, allowing clients to scan pictures of their documents with their phones and send them securely through the app. This leads to quicker turnarounds, enhanced communication, and, ultimately, happier clients.
It’s time for tax preparers to shed the misconceptions and myths surrounding cloud-based professional tax software. The cloud offers numerous benefits, including working from anywhere and attracting a broader client base. Embracing cloud-based solutions can transform your practice, making you more efficient and customer-centric.
Ready to upgrade your tax preparation software?
If you’re ready to switch to cloud-based professional tax software, we’re here to help. Contact us today to learn more about TaxSlayer Pro Web and the TaxesToGo® mobile app and how they can benefit your practice. Don’t let outdated myths keep you from providing superior service to your clients. Embrace the cloud and take your tax preparation business to new heights!
