Most of our life happens digitally today, and not just communication and entertainment. We receive almost all of our important documents from bank statements to bills via the Internet. So why haven’t we shifted our taxes into the digital age with us? It’s been slow going but thankfully with the CRA NETFILE system taxes can now be done online. Chartered Accountants back this digital filing system and here are all the advantages of using it.
What is NETFILE?
NETFILE is the online tax filing system that is used by the CRA. It’s a free system of Canadian taxpayers. As long as you have an Internet connection, a completed tax return, and a four-digital NETFILE access code (that can be found on your T1 personal income form) you are good to go.
Security
People always worry about doing anything important over the Internet because of security. In this instance, don’t worry about privacy or security. The CRA and NETFILE use the most advanced encryption available in North America. Your financial data will be safe and secure, only to be seen by yourself and the CRA.
Errors
Accountants say another advantage to filing online is that there are fewer mistakes and errors made. NETFILE will actually tell you if there is an error in your taxes when you try to upload it. This gives you a chance to double check and fix the error before submitting. This isn’t a luxury that one gets with pen and paper taxes. It saves you from having to made amendments later on. Flagging these errors before submitting also lowers to chances of an audit.
Speed
Filing your taxes online is way faster than doing it with paper even if you have an accountant helping you. In addition to filing being quicker, you also get your returns earlier. Refunds can be set up with a direct deposit and received in as little as eight business days. By comparison, it usually takes anywhere from four to six weeks to get refunds when filing with paper.
Tracking and Organizing
Filing your taxes online means you have a permanent electronic record of them. This will keep them nice and organized. If you ever need to access them later on or have proof of them they can be conveniently located. It saves you time and stress that comes with digging through piles of old papers looking for the right ones.
More Refunds
Accountants’ say that people who file online tend to bet more refunds back. When you file online you get a chance to see what tax credits and deductions are available to you. If someone files on paper without an accountant they often miss out of these opportunities.
Conclusion
There are so many benefits to filing your taxes online. There’s ease, speed, along with greater refunds and less stress. Contact a Toronto chartered accountant today to get help with your taxes or if you have any more questions about filing taxes online.
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