Tax season is a stressful time for most business owners. You must find the best way to handle your tax filing, which involves researching various platforms and software options.
In this article, we will explore some of the trends for 2023 that will help you make an informed decision.
Self-service options allow you to do your taxes. You can file your taxes online, and a lot of this has to do with self-service options. Self-service tax software is becoming increasingly popular because it saves time and money. You don’t have to pay someone else to do your taxes, which means you save money in the long run.
This option is for individuals and businesses, so if you need help figuring out where to start, this may be the way. Self-service software is available at any time, and anyone who is not an expert in the field of accounting or taxation can use it.
Your employees will also benefit from self-service options. For instance, they can use TIN Verification when filing individual taxes. Using self-service software will save money on professional fees and give you more control over your taxes—it’s a win-win!
AI and automation
AI is increasingly being used to help automate repetitive tasks. Businesses can deploy AI to help with tax planning, compliance, and audits.
One of the most common uses of AI in tax software is automated data entry and retrieval. It’s an excellent way for users who avoid entering their information into the system (or who find it difficult) to do so quickly and accurately without needing typing skills.
This method saves time on both sides. Users don’t have to type everything manually. Instead, they select their answers from drop-down menus or checkboxes based on their previous answers in past years’ returns.
Along with this convenience comes added security. All information stored within these systems are encrypted using industry-standard protocols such as SSL/TLS or PGP encryption technologies. The IRS Login Portal for e-Services uses the same security level, which requires users to undergo Secure Access Authentication. To access this IRS portal, you must enter a code sent to your mobile phone.
An IRS e-Services login page.
Mobile access is vital for tax software. If you’re like most business owners, there’s a good chance that you spend a lot of time on the road. Or your schedule is unpredictable, making it hard to find the time for an in-office appointment with an accountant.
A mobile app can help ensure that all of your tax information is available at all times—whether or not it’s convenient for someone else to help prepare it!
In addition, mobile access can make it easier for you to keep up with your business finances. Say you’re operating several restaurants or retail shops. The app will automatically sync with your desktop or web-based system as you enter transactions into your POS software. Whether you’re using Touch Bistro, Vend, or Square alternatives, you’re sure your account information is always up to date.
The rise of online platforms
The rise of online platforms is a trend that will only continue to grow in the coming years. For many small business owners, this is a great way to get started with tax software because they can handle their books and taxes without buying an expensive desktop or laptop computer.
Online platforms also make it easier for you as a small business owner because you no longer need to worry about managing your software separately from other programs. Online accounting and tax platforms will continue to become more advanced and sophisticated as time goes on. Many of the best accounting software for small businesses already have features that make them great for small companies, including:
- The ability to integrate with other tools you use (like email marketing software) so that you can easily manage your entire business from one place
- Integration with accounting software like QuickBooks allows you to access your accounts and logs anywhere, anytime. This feature is especially important for those who travel frequently or have to work on the go.
The rise of online platforms will also help small business owners save money because they no longer need to buy desktop computers or laptops to manage their finances and taxes.
Digital supply chain financing
The term “digital supply chain financing” is a bit of a mouthful, but it’s important to understand if you’re a small business owner. Your company can use its digital data and analytics as collateral for loans or lines of credit.
The idea behind this is that banks are more confident in lending money to businesses with strong financial records because they know their data will be accurate and transparent. It is integral to taxes because it allows you to deduct all of your business expenses, which can help you lower your tax bill.
The most important thing to remember is that digital supply chain financing is not just good for small businesses but also for the economy as a whole. The more money banks lend out, the more money there is in circulation—which means everyone has more purchasing power and can afford to buy things like homes and cars.
In addition, digital supply chain financing also opens up new opportunities for alternative lending options. These include peer-to-peer platforms like Zopa (which lets individuals lend directly) or Lending Club (where investors can buy into pools).
RegTech firms like FundRecs supervise the data management and processing of the fund industry.
Regulatory technology (regtech) uses software to improve compliance with government regulations. It can help you automate tasks like tax payments, reduce costs, and improve customer service.
Regtech also helps you stay compliant with government regulations to get paid faster. The technology can also help you ensure that your customers get the best possible service. For example, in lending and insurance, regulatory technology allows companies to track whether their agents follow procedures correctly. This setup can help prevent fraud and ensure customer satisfaction.
In the past decade, we’ve seen a shift in how businesses approach their tax reporting responsibilities. Today’s tax professionals are increasingly turning toward automated solutions like Xero and QuickBooks Online. These tools allow them to focus on providing high-quality service rather than spending hours on manual tasks such as data entry or preparing reports for clients each year.
Takeaway: Your tax software needs to grow as your business grows.
As your business grows, so too should your tax software. Your tax software should grow with you, adapt to new circumstances, and be flexible enough to handle any changes.
The laws surrounding taxes can be tricky and ever-changing—especially if you run a small business or have other side hustles on top of your day job. The software used by accountants must keep up with these changes to stay accurate and provide accurate advice at all times.
To keep your tax software up-to-date, you should look for trends and tech tools that offer the features outlined above. Even if they don’t all apply to your business right now, it’s good to know what’s coming down the line to decide which features are most important to your organization.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.