Whether you are a small business, freelance tax professional, or a well-known corporation, tax filing is like finding a needle in the haystack if you don’t have the right software.
Earlier, it was easier to handle the professional taxes of multiple organizations; due to the simplicity of the tax structure. However, now, the tax structure is developing as we speak. As a result, it is complicated for professionals to accurately achieve tax processes without the accounting software.
Hence, QuickBooks is used to organize financial activities throughout the year. It can help you streamline your tax workflows.
In this article, we will discuss how QuickBooks abridges the gap between efficient taxes and risk-free execution. So, without further ado, let’s move on and understand how QuickBooks empowers tax professionals.
How QuickBooks Helps Tax Professionals?
Tax structure is complicated, rather problematic for an array of organizations. The changing rules and regulations further add to the complexity of this landscape.
Don’t you think?
If you are struggling with similar issues, check how QuickBooks can aid your functioning.
1. Stay Tax Ready
QuickBooks accounting software allows tax professionals, independent contractors, and freelancers to stay tax ready. Of course, there are other dedicated benefits of the software but staying tax ready tops our list, and here’s why:
- You can categorize your transactions in QuickBooks automatically. This saves time spent on tax categorizations and improves tax savings in deductions.
- In fact, you have an option to take a snapshot of tax-related receipts. QuickBooks will categorize these according to your categories automatically.
- It is possible for tax professionals to understand and evaluate their finances on the go. Check your income and tax details with a swipe, hence, stay tax ready.
- Instead of piling up tax liabilities throughout the year, QuickBooks helps you plan every quarter. This improves your structure and reduces risks.
Tax readiness is the first step towards improved tax structure and better tax-related savings. QuickBooks helps you achieve just that with its innate features and qualities.
2. Hassle-Free Tax Management
There are multiple annual and quarterly taxes, which are difficult for the tax professional or a business owner. However, QuickBooks can make your work easier.
Although you still need to pay your taxes and clear your dues, QuickBooks can improve tax-related workflows and streamline your data during tax filing.
- The software will automatically estimate the annual and quarterly taxes that you may have to clear. This is extracted from your expense and income data and statements.
- You can fill some of the tax-related forms from your software online. For example, 1040-ES can be filled through QuickBooks easily. For advanced versions, it is even possible to send the voucher online along with its payment.
- For annual taxes, you generally need to file a Schedule C. QuickBooks offer that feature through the software only. However, the advanced versions are more well-versed in this feature. You can even fill complex taxes in the tool.
Tax management is extremely simplified in QuickBooks software, so much so that an individual tax professional can fill taxes only using this tool. No additional guidance or technology is required.
3. Sales Tax Management
Sales tax that is applied to final services or products is composite and challenging to manage. It is not applied like VAT or GST, as used in some countries. The sales tax differs based on service/product to service/product and state to state.
QuickBooks can help you keep track of your sales taxes for easier execution and management.
- Whenever you are making an invoice in your software, QuickBooks will automatically compile sales tax. This tax is calculated as per location, date, service type, product type, and customer.
- We already know that categorization is possible in QuickBooks. Using this, it applies the right rate of sales tax to the right category for a particular location.
- At any given time, the user can check tax liability related to sales taxes. All this, categorized according to the agency, taxable, non-taxable, gross amount, and other similar factors.
You can’t avoid collecting the sales tax. But, you can avoid making mistakes in the calculation with the help of QuickBooks software.
4. Tax Reports
Knowing the financial health business means being able to analyze reports. Fortunately, QuickBooks empowers you to evaluate multiple reports, which directly or indirectly impacts your tax filing.
- Clear and concise reports for business decisions. From income statements to balance sheets, the software offers reports in real-time for timely analysis. You can even customize these reports according to the unique requirements of your business.
- Through QuickBooks’ reports, you can literally prepare for the future. This means that you have the power to create a roadmap of spends, that can help you track future situations and modify your plan accordingly.
- You can practically keep a check on your taxes and money. Whether it is the pending invoices or customer balance summary, you have every detail on your fingertips. This helps in assessing taxes.
- You can prepare the following reports using QuickBooks:
- Expense and income statement
- Profit and loss statement
- Sales report
- Sales tax revenue report
- Sales tax liability report
- Payroll tax payment report
- Payroll tax liability report
- Workers compensation
QuickBooks also allows professionals to generate forecast to shed some light on future possibilities. Having this data is beneficial for gradual improvements in the tax structure of the company.
5. Data Security
When we are talking about taxes, data security holds incomparable importance, and data breaches are inevitable without a proper structure. For this reason, we require software or tool with proper security structure. This structure should have the capability of securing your transactions and valuable financial data.
In simple words, you need QuickBooks for secured password-protected access, anti-virus support, regular backups, etc. With the highest encryption standards, you can easily mitigate your data security risks.
QuickBooks simplifies the working of every tax professional, whether working alone or with an organization. Owing to the in-built features and integrations, the software is able to streamline the tax structure end-to-end. If you are also facing troubles with your tax structure, it may the right time to buy QuickBooks acecloudhosting.com.