How Tax Software Can Help Your Business Stay Compliant

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The days of businesses shoving overflowing boxes of papers at their accountants at the beginning of the calendar year have all but been eliminated. The advent of business tax software applications has provided entrepreneurs and small businesses owners with a centralized system that keeps their finances in check throughout the year. 

Check out The Tax Loft’s small business services to start!

How Your Business Can Benefit From Embracing Digital Payments

The ease in paying taxes begins with businesses embracing digital payment systems. When an entrepreneur has to pay suppliers and deal with customer transactions, going digital reduces cumbersome paper transactions and the cost of their use to fractions of pennies on the dollar, which puts more money in the business owner’s pockets.

Additionally, going digital eliminates the hidden costs of paper money, which includes businesses paying to guard against losing money through theft.

3 Ways Business Tax Software Makes Life Easier 

When it comes to paying taxes, the benefits to businesses are numerous and include:

• Improved financial accuracy. Anyone who's ever kept the books of a business knows that the smallest error can create the biggest headaches when it comes to balancing the books. Tax software has eliminated this headache by having built-in checks that alert users about anomalous data. Improved financial accuracy helps companies make better decisions.
• Built-in audit history. Having to find the necessary paper receipts to account for every transaction is tedious and prone to real-life hazards, such as fire. Technology has virtually eliminated that risk by providing the necessary audit trails, along with backups that can be kept, copied, and shared for years to come. 
• Reduced compliance times. Between the different tax requirements for local, state, federal, and international tax compliance, manually tracking these deadlines is tedious at best. Once you enter the necessary information in the software, it helps you gather the necessary data and electronically submit everything to the correct portal on time.

For businesses that have simple tax needs, free tax software will suffice. Additionally, the IRS has a Free File program for certain types of business owners, specifically sole proprietors and business member partners, who meet specific requirements. Both options are worth investigating.

Always Consult a Tax Professional

As autonomous as this tax software makes entrepreneurs feel, you may still need the guidance of trained tax professionals. With the numerous tax codes that vary depending on business location and classification, it can be hard to tell exempt vs. non-exempt taxes.

The Tax Loft  can help you avoid the hefty penalties and fines that come from incorrect filings. For example, business owners who incorrectly classify employees as independent contractors face penalties up to $10,000 per misclassified worker and one year in prison.

Choose the Best Software

Because business taxation can be a complex process, tax software relieves many of the inherent burdens and frustrations. When choosing the best software for your business, make sure it can handle returns for all jurisdictions and helps you find and calculate tax deductions, which can be particularly important for any business owner.

The Tax Loft, run by Rebecca (Becky) L. Record, EA, P.C., besides specializing in Accounting/Bookkeeping, Payroll and Tax Services, is a QuickBooks Pro-Advisor. She offers a variety of QuickBook services, including QuickBooks set-up, training, tune-up, and answers. She can even help you determine which QuickBooks version you need and save you money on your QuickBooks purchase. Contact The Tax Loft and Becky Record here or by calling (207) 824-7096. 

Article Submission by: Michael Longsdon