OCR Technology is Good for the Firm and Client

Recently, when I was scanning my e-mail, a press release from Thomson Reuters jumped out at me calling attention to its Source Document Processing Service:   The Tax & Accounting business of Thomson Reuters announced today that its Source Document Processing service is off to a strong start this tax season, having already processed thousands of source documents such as W-2s, 1099s, and K-1s in early January – a nod to an upward trend in user adaptation of this technology solution. Now entering its third year of availability, the Source Document Processing service uses OCR technology to offer automatic labeling and organizing of 1040 client source documents and automatic data transfer to returns.   Sure, in part, this is a little PR Spin, but it’s also notable information because it signals the fact that more accountants are relying on advanced technologies to navigate their way through tax season.   I like that. Everyone wins when technology is used to create efficiencies. It not only takes less time to process a return—OCR and related technologies ensure information is accurate by eliminating human error through rekeying of data. You’ll also have a happier client if you relay this more efficient process and talk about how you’re incorporating paperless technologies to speed up the process and stay green.