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Automating your business tax system

Doing your own taxes can seem like the optimal solution, but we can become our own stumbling blocks when dealing with important financial information. Join us to see the benefits of implementing an automated tax system through online solutions.

Doing your own taxes can seem like the optimal and most cost-effective solution. If you imagine your business as a machine like your car, doing your taxes can seem like a routine service such as getting your oil changed. Even if you enjoy doing services such as these for your business, it can still be the least effective solution for getting your taxes done properly. We can become our own stumbling blocks when doing our own taxes because of the imminent dangers of human error. By implementing an automated tax system through online tax solutions, you are able to increase your productivity while reducing errors and stress.

Potential problems with doing your own tax prep

As your business grows, the importance of having your taxes done right steadily grows as well. The more employees your business has, the more hands your important information has to pass through before having your taxes completed. Thankfully, there are many online solutions that make it possible for your business to speed up the process and get your taxes done quickly, efficiently, and accurately. Technically, yes, your business can continue to use spreadsheets and utilize manual entry to manage its sales and taxes. But depending on your company’s footprint and the quality (or the lack thereof) of the work being done, this could lead to potential issues.

Choosing and implementing an automated tax system

There are many factors that go into choosing an automated tax solution. Your invoicing system, transaction volume, industry, budget, and the complexity of the taxability of your products and services all come into play in determining the best system for your needs. You know your business best, but you can rest assured that your solution will only serve as an aide to take loads of tax prep off your shoulders.

There are many things to consider when implementing a new tax solution. These can include:

●      A tax system that is properly implemented and maintained will help reduce errors, increase employee productivity, and help businesses avoid audit fines and penalties and the labor costs to fix mistakes found in an audit.

●      An automated tax system will reduce human error due to the nature of its service and the lack of needing someone to look over every line of a spreadsheet manually.

Cloud-based accounting solutions

Aside from increasing efficiency in getting your taxes done, most tax automation systems are based in the cloud and allow for many avenues of customization and optimization. This allows for multiple users to connect at multiple times as well as the ability to run on almost any platform. Beyond calculating taxes accurately, your tax software should also be able to produce and provide effective reports tailored to your business, as well as to file returns in an automated fashion.

A dedicated service for your bookkeeping needs helps make your tax preparation much simpler. With KPMG Spark, you get an incredible online solution as well as a human bookkeeper to help guide you through your tax preparation process. A real-time accounting dashboard, help with payroll, invoicing, and expenses allow you to stay up to date on your finances. We help simplify the tax preparation process so you can focus on what matters: the day-to-day of your business. Schedule a consultation today and see how we can help.

 

 

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG LLP.

This blog article is not intended to address or provide advice concerning the specific circumstances of any particular individual or entity and does not constitute an endorsement of any entity or its products or services.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

Ben AsplundFebruary 23, 2021Posted In: Business Tips

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