![]() ![]() Regardless of the quantity or sheer height of filing cabinets, there’s no escaping their inherent limitations. You can even take a trip to Burlington, Vermont to see the “World’s Tallest File Cabinet” - if you are an authentic filing cabinet historian or enthusiast. In fact, some companies use dozens (even hundreds) of filing cabinets both on- and off-site to manage their information. More ResourcesĬFI is the official provider of the Commercial Banking & Credit Analyst (CBCA)™ certification program, designed to transform anyone into a world-class financial analyst.Fast forward to the 21st century and you’ll find that many companies still use filing cabinets to organize their documents. Security is one of the biggest concerns that come with e-filing. A hard disk crash could lose all data an unethical hack could potentially make one incur massive losses, and so on. The process involves the storage of highly sensitive financial data electronically. Still, electronic systems are not short of security breaches. ![]() SecurityĮ-filing involves a tax filer to put their faith in the security of their internet connection, the software, the hard disk with data, etc. Not many individual tax-paying units are aware of the knows-and-hows of the e-filing process. However, the use of e-filing software is not taught everywhere and hence can be complicated to use for tax-paying units that file their own taxes without using the services of a tax agent or a trained professional.Īdditionally, since it is a relatively new process, the knowledge of e-filing is not widespread. Complicated softwareĮ-filing is an easy task for trained professionals or tax agents. While there are innumerable benefits to electronic filing, it also comes with certain limitations, such as: 1. It makes it less ambiguous than it usually is via the paper filing method. With e-filing, notification throughout the tax filing process and/or confirmation of receipt or rejections are delivered within 24 hours, thereby increasing the level of certainty of the entire process. Paper filing is slightly more ambiguous because there is high ambiguity on the receipt of tax papers and tax records. Increased authenticity and accountabilityĮ-filing has also led to increased authenticity to the process of tax filing and increased accountability on both the tax agency and the taxpayer. With e-filing, online data availability and interconnectivity are much more profound, and linking or tracing data back to a tax-paying unit is made much easier and faster with e-filing. Less room for manipulation of records and window dressingĮ-filing leaves less room for manipulation of data records and window dressing. Since transmission errors and the like can be avoided through e-filing, it leads to increased data records accuracy and the overall tax filing process. The process saves a lot of time and money from transferring data from paper to online input and saves the agency from making transmission errors.Į-filing also reduces time and effort for both the tax agency and the taxpayer because it is generally much easier and faster to process e-file tax returns than paper returns, thereby saving a lot of time on both ends. When taxes are e-filed, whether it be for businesses, professions, or individuals, the data is directly transmitted online from the e-filer’s servers to the tax agency’s servers. Saves time and moneyĮ-filing saves a huge amount of time and money. They can do it whenever they wish to, as it no longer serves to be a 9 to 5 task. Convenient and flexibleĮ-filing has brought about increased flexibility in the filing of taxes and is a lot more convenient since one’s taxes can now be filed from the comfort of their home or workspace at their own time. E-filing is becoming increasingly popular because of the wide array of benefits it offers.Įlectronic filing is becoming increasingly popular because of the wide array of benefits it brings to the table: 1.Whether individuals, small businesses, and other professionals are allowed to e-file depends from country to country, and sometimes even within a country, province by province, depending on the tax regulations and government rules.Electronic filing, or e-filing, refers to the process of filing one’s taxes electronically, using online software approved by the relevant tax authority of the respective country. ![]()
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