Tax document automation allows you to take a stack of client source documents and scan them as-is into a PDF file to be automatically organized for you. No organizing the documents pre-scan, no leafing through the pages to make sure they’re all facing the same direction, and no pulling out documents that are irrelevant to the tax return. All you have to do is pull out any staples and/or paper clips before scanning and you’re good to go.
There are two basic categories of tax document automation solutions: scan-and-organize and scan-and-populate. Scan-and-organize software automatically organizes, bookmarks, and labels the tax documents into a PDF file. Scan-and-populate software eliminates manual data entry by extracting the tax data from the scanned tax documents and automatically importing the data into your tax preparation software package.