In today’s increasingly mobile world, financial management software and apps have changed the way we interact with each other. Businesses are not exempt from this rule and tapping into these benefits makes operational tasks easier than ever before. A prime example is how the use of financial management software turns tax season into a breeze for businesses of all sizes. Here are 7 reasons tax season is an easier process to navigate with the help of sophisticated financial management software.
Automation Helps Take Human Error Out of the Equation
In 2013 alone, U.S. businesses accumulated almost $7 billion in IRS civil penalties from incorrect business income reporting. Rest assured that incorrectly calculating tax information and similar human errors make tax time a burdensome endeavor. Even if a business knows what it’s doing and inputs all the data correctly, it’s a hassle to go through.
Automation via financial management software ensures that, if the data is input correctly, errors are easily avoided. Of course, when the process is made this easy, it is important to stress that businesses should not get lazy about inputting the data. It is still critically important to check and double check the data. Software is only as accurate as the information it receives. But, so long as the information is good, businesses will love the time-saving benefits of easy automation when tax season rolls around.
Financial Management Software Helps Businesses Stay Compliant
Compliance is, to put it politely, a bear to tackle without the help of financial management software. Part of falling out of compliance is often traced back to poor records and being generally unprepared for tax season. This is particularly true for small businesses, where business owners are required to juggle different tasks and wear many different hats.
Financial management software gives businesses the tools needed to have quality and accurate records for important items like:
- Pay Stubs
- Bank Statements
- And More
When important information like this is easily accessible, it is easier than ever to work with accountants and similar compliance professionals.
It’s Easier to Save Money During Tax Season
Too many small business owners spend valuable work hours and/or late nights thinking about what their deductible expenses were in the previous year. With financial management tools, it is easy to quickly scan and review all business expenses in the last year. As a result, it is unlikely that any deductible expenses will go unnoticed and unused, which adds up to valuable savings come tax time.
Tax Planning Is Wherever You Are
Tax season should revolve around your schedule, not the other way around. The best financial management software makes that happen by providing businesses with an anywhere, anytime financial management app that makes it easy to prep for tax season both in and outside of the office.
Financial Management Software Stays Current
Small business owners should be aware of the fact that the IRS has made nearly 5,000 changes to tax codes since 2001. Simply put, it is a chore to keep up with all those changes. Financial management software is best used when integrated into tax software. These tools should easily integrate, helping business owners rest easy that the software is up to date on the latest tax codes that have an impact on the business.
Financial Management Software Is Secure
The tax information of a business should be secure and well-protected. Top financial management software provides these critical protections by providing fraud protection, indexed digital filing and an audit trail. These safeguards and security features help business owners sleep better at night, especially at tax time.
Making Payments Easier to Manage Throughout the Year
Finally, tax season isn’t just a last-minute approach for many businesses. Preparing for tax season is an ongoing issue throughout the year. Managing invoices, receipts, bills and payment schedules are all performed with the big picture of tax season in mind. In this way, financial management is benefiting you in tax season on a daily basis, preparing you for a better tax season experience each and every day of the calendar year.