Still trying to survive with old, outdated tax software system? A failure to upgrade could cost you. The business world is changing faster than ever, and their tax burden is shifting, as well. A system that served you well just a few years ago likely isn’t keeping pace with your company’s needs today. In what ways is it crucial to integrate with a new tax software system as soon as possible?
Changing Tax Policies
Image via Flickr by 401(K) 2013
As Bush-era tax cuts expire and aren’t being renewed by the Obama administration, taxes beginning with the 2013 year are going to be more unwieldy than normal tax seasons. Tax policies are changing, and it takes a fully integrated system to keep up with it all.
Tax law does change from year to year even under normal circumstances, but recent changes have affected tax regulations businesses have been following for years. It’s important to have the latest system available in order to remain in compliance as tax policies and procedures change in this new era.
Backup Tax Documentation
Companies used to be able to survive without their online backups, but in today’s digital age, this is impossible. Aside from the paper documents, companies need a solid backup system so that any data that becomes damaged, corrupted, or compromised can be retrieved.
In addition to the latest tax software, companies need to have an updated method for backing up this data, which can include an off site or cloud backup plan in addition to the usual backups kept on the on site servers. These backups should be kept for as long as the IRS requires, at least seven to ten years. A new system backs up regularly and efficiently, so all the crucial information your business needs come tax time are safe and secure.
As companies grow, and we move from large scale data to true big data, numerous departments need to be able to enter their earnings and deductions so that all the tax information for the entire enterprise is accessible to everyone who needs it at any given time.
Though accounting is largely responsible for tax information, each department has their own finances to manage. With an integrated system, you won’t be missing deductions or income from any department, since it is all handled in the same system.
Trends in Productivity
Today’s business world requires companies to be more productive with fewer resources in order to remain competitive. This means companies can no longer afford to use any system that isn’t the most efficient system available. Hence, an integrated system for keeping up with tax information and documentation is critical.
Workers can no longer afford the time it takes to log information into more than one system, or to try to keep up with their tax information manually. It’s too time consuming, and takes away from their productivity elsewhere. An integrated system streamlines the process, so workers can get back to doing the things that makes the company profitable.
Many workers aren’t spending time at the office anymore, they’re mobile. A mobile workforce presents an entirely new range of challenges for the IT department, but they also challenge the accounting department because they’re not in the office to regularly log their receipts for travel, fuel, meals, and other travel expenses.
The right integrated tax software will allow mobile workers to keep their end of the equation up to date, so there aren’t any missing elements when it’s time to calculate taxes. Those familiar with business tax issues, like Mark Weinberger, know that every deduction is useful. An integrated system assures that mobile workers get equal access to the system so their entries don’t go undone.
A new system benefits your company in a multitude of ways. It makes budgeting easier, makes work faster, and eliminates a lot of human error that older systems are susceptible to. A newer system also takes into account today’s more common business practices, such as online productivity, a mobile workforce, and the need for high productivity with fewer resources.
Taxes aren’t the most enjoyable aspect of running a business, but it’s one of the most important to manage properly in order to keep the business afloat. The right system will improve your business processes, not hinder them. Make sure your workers get the right training on any new system you invest in. Training is crucial for making sure the system is used in the most efficient way so that at the end of the fiscal year, the system has already done most of the work for you.