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Ask the Expert • TAX PRACTICE MANAGEMENT

The rise of contactless tax services

Q What do you expect the future of contactless tax prep to look like?

A While many businesses embraced contactless services out of necessity
at the height of the pandemic, I expect this shift will become permanent for
the tax industry. Both taxpayers and tax preparers enjoy the convenience of
remote delivery and working from anywhere. A recent Drake Software survey
of more than 2,300 tax professionals found that 31% serve clients who prefer
completely virtual tax-preparation services, and 37% plan to strongly encourage
contactless engagements.

Q Do you think this trend is good for the tax industry?

A Contactless services are more than a trend: They are the new standard for
doing business. Eighty-six percent of those we surveyed believe they can offer
the same level of service for contactless clients as for the traditional client. One
John Sapp of the greatest challenges of the future for tax preparers is to establish and
CPA and Chief maintain client trust that they have traditionally built through in-person meetings.
Revenue Officer They must instead find and embrace new methods of service delivery through
Drake Software LLC technology that establish a personal relationship with their customers, despite
John Sapp is the chief revenue there being no physical handshake or in-person contact. The tax preparers
officer at Drake Software, one who can effectively build personal relationships using current and upcoming
of the largest professional tax technology will find increased opportunity for growth.
software companies in the
nation. As a certified public Q Is contactless a secure way to do business?
accountant since 1987, he has
considerable experience in public A In a word, yes. Platforms that support contactless tax preparation — like
and private accounting for the client-facing portals for exchanging documents — generally include safeguards
technology industry. such as multifactor authentication, data encryption, and regular data backups.
When you also consider the security requirements for tax professionals under
the FTC Safeguards Rule, our industry is well equipped to keep business
and customer data secure while tackling the challenges of contactless tax
preparation.

Q Are there advantages to offering contactless services?

A Offering contactless services means you can take your tax practice
nationwide. As long as your preparation software provides accurate support
for the necessary state and local tax forms, you can grow your practice far
beyond the boundaries of driving distance. Even local clients who are sensitive
to challenges such as the cost of gas, difficult work schedules, or compromised
Drake Software, founded in 1977, immune systems will be glad to work with your company from the comfort and
provides software solutions to over convenience of their own home or place of business. You may even find you no
70,000 tax and accounting firms that longer need a large storefront to serve clients, instead housing your data in the
file more than 36 million tax returns cloud and your employees in remote locations. This could save you a great deal
every year. Known for award-winning of business overhead, allowing you to invest in new technology, additional staff
customer service, Drake is also members, or that vacation you’ve been dreaming about!
consistently recognized for excellence
in quality, value, reliability, and product
innovation.