Why is Tax Automation Software Needed?
When thousands of tax forms have to be processed every day or every month, for employees in companies there is a need for tax automation software to get the job done. Manual data entry and manual processing was used for several years before the creation of such software packages but currently tax automation software packages have taken over. One reason for this software's popularity is that less money has to be spent on the whole process of tax filings and tax payment. In fact, the savings received by using tax automation software can run into thousands of dollars per month in large companies. When such software is used the need for manual entry can be sidestepped altogether and instead of a data entry operator reading through a form to get the pertinent tax details, optical character recognition (OCR) technology is used. OCR technology is in fact the backbone of tax automation software and can be used to capture information from a variety of forms. Tax automation software very often also contains advanced OCR technologies such as intelligent character recognition (ICR) which captures handwriting when present on forms and converts it into text searchable output.
Benefits of Using Tax Automation Software
The main benefit of using tax automation software is that use of paper can be kept low or done away with altogether in an office or a company. There is no need for tax forms to be archived and filed away in cabinets, instead, these forms can be converted into scanned images and then processed with the OCR technology present in tax automation software. This ends up in forms being processed faster and taxes being filed faster. The use of tax automation software also reduces the number of human errors made during the processing stage and this ultimately results in money being saved too.
Types of Tax Automation Software
There are several types of tax automation software. Most of these can be bought and downloaded from websites on the Internet, and these can become operational within a few hours.