Learn Top 10 Advantages of Using Tax Software

As tax season approaches, many of us are scurrying to gather our tax documents and previous year’s records. If you’ve always done your taxes the old-fashioned way—by hand and on paper—you presumably have filing cabinets full of tax-related documents.

Unfortunately, unless you’re also highly organized, a couple of these files have probably vanished into thin air, and you fear having to sift through hundreds or thousands of pages simply to find what you’re looking for.

If you’re drowning in paper and exhausted from keeping track of tax records by hand, it’s time to upgrade to tax software. Here’s how it’ll relieve your tax-season stress and make your life easier.

1. It is capable of keeping track of everything.

You won’t have to sift through physical paper files if you use tax software. Nearly all tax software brands have digital file storage, automatic record categorization, and file search functionalities as standard features, which means you can simply find what you need in one location. You won’t have to deal with missing documents, misplaced papers, or other problems associated with physical storage.

Furthermore, you won’t have to spend hours organizing everything because tax software will automatically save your files in a repository that you can access at any time. Many programs have built-in file search functions that allow you to find exactly what you’re looking for by simply typing in the name or kind of file you’re looking for—no more rummaging through physical folders.

2. It’s Simple to Change

If you’re anxious about having to digitize earlier years’ tax returns, don’t be. Many platforms provide simple uploading solutions. Uploading paper papers (for example, last year’s W-2) may be as simple as taking a snapshot of them with your smartphone, depending on the software you use. Your gadget would then automatically read the information taken in the image and transfer it to a digital copy. If you ever need to access your W-2 again, simply open your tax program and search for it.

In other words, you are unlikely to have to make manual changes or entries. You won’t have to transcribe things by hand, or even scan your documents page by page with your printer in many circumstances. Tax software is designed for all types of taxpayers, including those considering a paper-to-electronic transition.

3. It is safe

While keeping physical documents on hand is certainly safe, digitizing them with tax software is equally safe. Tax preparation firms understand that you’re giving sensitive information like your social security number and sources of income over the internet, so they work hard to keep your data secure and private.

If your tax software is cloud-based (that is, it is accessible online via a browser), the connection to the site should always be encrypted using the Transportation Layer Security (TLS) cryptographic protocol. This ensures that any data you submit to and from the site, such as your account information or income information, remains encrypted and secret to third parties.