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What are some tax document organizers?

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Quick Answer

Tax document organizers range from simple manila envelopes and pocket folders to online and standalone software products, according to Cash Money Life. Going "paperless" by using online organizers or workflow and document management software reduces labor and improves efficiency, notes CPA Practice Advisor.

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Full Answer

Individuals can use three-ring binders, envelopes, expanding file folders or even desktop trays to store and organize their tax-related documents. However, tax situations involving both business and personal may warrant segregating the records for each return, advises Cash Money Life.

For a professional tax preparer, automated document management software, either online or as part of tax preparation software, offer the benefits of reduced paperwork, improved workflow and higher productivity, says CPA Practice Advisor. Tax preparers can reduce paper handling by having clients scan key documents and offering clients an online organizer integrated with tax preparation software. Preparers can combine these tools with web-based client portals and document management systems to further streamline the tax preparation process.

Individuals or tax professionals must also evaluate their requirements and consider their needs to organize documents securely, fill in tax data accurately and create documents efficiently to support review in the event of an audit, suggests the American Institute of Certified Public Accountants. Licensed software typically requires a larger capital investment and ongoing information technology support than do web-based solutions.

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