5 Ways Tax Software Can Boost Your Business
Tax software is an absolute must for any accountant or tax-preparing business. Using this software allows employees to do their jobs more efficiently, which means that a company can either take on more clients or spend less time completing the same amount of work.
However, there are many different types of tax preparation software out there, and choosing the right one can be challenging. While you may start with a tax software reseller, here are reasons why software is essential and how it can help your business succeed in the long run:
- Streamlined Data Entry
Tax prep software is a way to use automation to boost your business. It allows you to import W-2s, bank account info, data from other tax software, and other sources like emails or spreadsheets.
It also allows you to import data from other people such as clients or employees and then send it to yourself in an email attachment. You can even import data directly into your app via a QR code link. If your clients have all their information stored on an app, they may be able to transfer everything over with one click quickly.
This method is beneficial if they’ve used another app for years and don’t want to switch programs even though yours offers better features and benefits.
- W-2 Import
The best way to start is by importing W-2s. You can import W-2s from your clients and vendors, or you can import them from other tax preparers. The software will automatically populate your return with the data it gets from the IRS, so if one of them has made a mistake or omitted something, it’ll be easy to find out and fix. People are wondering about the amount to pay tax preparers now, and automating a part of your work can make it easy to conserve resources.
If you do have employees who work for you at home or in an office elsewhere, this feature is available for them as well. This makes data entry easier when preparing payroll taxes later on. Instead of entering all their personal information manually into every form, just hit ‘import,’ and the software will do all the work for you.
- Collaboration With Partners And Staff Anytime, Anywhere
Collaboration is a crucial part of the tax preparation process. You and your staff will need to collaborate with clients, business partners, and other third parties throughout the year. If you’re not leveraging this technology already, then you risk losing out on time-saving opportunities while also increasing the chances that errors will be made along the way.
Collaboration can boost productivity in many ways as it helps eliminate errors by reducing manual workflows and speeding up data entry.
- Tax Extenders And Tax Reform With No Extra Cost
Tax reform is a change in the tax code. While some changes are long-term, they often last only one year. This makes it difficult for businesses and individuals to plan their finances because they can’t be sure what the new rules will be.
Tax extenders are another complication that tax software helps you with. These are provisions Congress extends year after year but never makes permanent.
Tax software helps you deal with these issues by keeping track of current legislation and letting you know when something changes from year to year so your clients can stay informed about their taxes and those of their clients and employees.
- Auto-Updated Forms And Calculators
Tax software is an excellent addition to your tax preparation business because it allows you to offer auto-updated forms and calculators. When you download the latest version of your favorite tax software, you’ll have access to all of the most current IRS documents. The forms are updated daily, so you can ensure that your customers are using the most recent versions of their W-2s, 1099s, and other tax forms.
The same goes for the included calculators. They’re automatically updated weekly with any new laws related to deductions or credits that might affect how much money their clients should receive. Plus, if there are changes made during tax season (like a new law), those changes will be reflected in these tools as well—so they’re always on top of things.
The tax preparing industry isn’t going anywhere, but the landscape is changing. It’s essential to adopt tax software programs to stay relevant and competitive in your local market. If you don’t plan on adopting any of these tools soon, consider how a competitor who does will be able to run a more streamlined and efficient operation than you. You don’t want to miss out on the future, indeed.