How Cloud Accounting Helps Eliminate Tax-Time Worries
For small business owners, few things are as cumbersome as the quest to systematically organize financial records. Almost 40 percent of entrepreneurs have reported this as the most time-consuming part of running a business.
That’s pretty true too as tax preparation & bookkeeping typically consumes more than 80 hours every year. Irrespective of whether an entrepreneur prepares & files taxes individually or works with a professional accountant for the same, getting organized is a must.
By staying better organized, you can expect a less time-consuming and more relieved tax preparation time. Innovative technologies like Cloud accounting make it simple for small accounting business owners to use their accounting software in a more productive manner.
However, a recent survey done on accountants indicates that all such crucial tools may be underutilized: Possibly, that’s the reason why tax preparers report lack of up-to-date financial records at the time of tax filing.
Using Technology Optimally to Prepare for Tax Time
When technology adoption is underestimated by small businesses, organizing financial records systematically remains a dream. It’s in that case only when receipts would remain scattered and records may remain unorganized in the most drastic manner.
Getting all data critical for tax filing into the same place has to be the first & foremost step to effectively processing the data hidden in paperwork. An organizational accounting software system is the best fit for this task.
Technology even makes it easier for team members to add documents to a centralized digital location by scanning papers suitably. Smart identification software extracts relevant information from the scanned & uploaded documents. This further makes tax reports preparation easy.
Critical Worries Small Businesses Have
For small-business owners spending much of their tax preparation time worrying, one of the most important benefits of smartly digitizing important records is the alleviation of a major part of the tax preparation stress. Consequently, such businesses are no longer burdened with worries like –
‘I’m not sure if all my tax data has been correctly entered.’
Normally, accountants & bookkeepers have a fine reputation for excellent attention to detail. However, human work is very prone to errors and so even the most meticulous accountants may make the most unusual typos.
Smart organizational software allows for elimination of manual-data entry by automatic extraction of important data from documents and thus eliminates the chances of human error.
‘I am not sure if I am getting all deductions I am entitled to.’
Making it a habit to scan bills into your organizational software does help to ensure that all of your deductible expenses are systematically tracked and accounted for.
Technology can enable much simpler itemization of costs. This can be made possible by tagging them with the tax categories which are used by IRS.
‘I have no idea about how to handle an audit.’
When you are forced to justify all of your deductible expenses, it may be prove to be a big headache. However, with all information available right in one place, the nightmare of audit can be a little less painful.
Make your Tax Season Stress-free with Cloud
Tax season does give a nightmare to many businesses. Especially, businesses not having everything organized need to wake up as it can lead to more complexity. It’s pretty evident this that small accounting business owners who opt to effectively leverage technology for organizing paperwork will definitely enjoy a more merrier tax season with fewer worries.
Cloud technology does contribute in a more streamlined bookkeeping all the year round. So, if you use one of the available accounting software like QuickBooks, Cloud hosted QuickBooks should suit your interests ideally.
Combined with the incredible power of Cloud, QuickBooks plays a significant role in simplifying & streamlining bookkeeping.
- Angeela is Techarex Networks' Content Marketing Associate for Intuit products. She has worked as an eCommerce and Marketing Strategist for the last five years, helping businesses with software implementation for Customer Service, CRM and Email Marketing. Angeela thrives in helping companies find the right software solution for their projects. Aside from his obvious passion for Marketing, Angella admits to being a foodie and travel enthusiast.