The tax season filing deadline of April 18, 2023 is right around the corner. If you’re a small business owner, that means it’s time to call your accountant. However, tax season can be stressful for accountants as they’re required to work long hours, meet tight deadlines, and maintain client confidentiality.
Handling small business taxes requires reviewing paper receipts, examining financial statements, computing taxes owed, and evaluating internal accounting practices. Tax accountants must also be able to communicate with and manage multiple clients simultaneously.
During peak season, it’s not uncommon for accountants to work 80+ hours per week. In fact, Gartner discovered that avoidable rework in accounting departments takes up to 30% of an employee’s time – for a 40 person staff this equates to annual costs of $878,000. Leveraging accounting automation software can save tax accountants valuable time and resources.
How Does Tax Season Work?
Business owners should work with their tax accountants all year long, especially if they have quarterly tax filings. Claiming all income to the IRS, maintaining adequate records, and properly classifying expenses makes tax preparation easier for business owners. They should retain all invoices, bank statements, receipts, and sales slips. Using accounting software is essential for managing the business’ financial data.
The business’ internal bookkeeper should do the following:
- Record all business transactions
- Reconcile receipts to credit card statements
- Separate personal and business expenses
- Organize internal documents for tax accountants
- Set aside funds for taxes (at least 30%)
Business owners and bookkeepers must work closely with tax accountants to ensure taxes are filed properly. All parties should be aware of changing tax laws and codes. Small businesses and franchise owners should establish consistent bookkeeping practices, maintain proper records, and file tax returns prior to deadlines.
Tax accountants must work with business owners closely to limit company audit risk. They must file taxes both quarterly and annually to avoid fines and penalties. Tax accountants should provide monthly financial statements and oversee payroll estimates throughout the year. Using Docyt’s accounting automation software can make the tax filing process easier.
How Docyt Can Make Life Easier for Accountants
Many elements of your business have advanced well into the twenty-first century, so why are you still filing taxes like it’s the 1950’s? Docyt centralizes your client’s data by continuously collecting and digitizing receipts, invoices, and bank statements throughout the year – making tax season less stressful for business owners and tax accountants.
Docyt’s accounting automation software and AI technology automatically codes transactions, creates journal entries, reconciles bank and credit card transactions, and continuously syncs all data and supporting documents into Quickbooks®. As such, tax accountants can save valuable time during tax season, allowing them to focus on filing taxes instead of year-end bookkeeping.
Docyt’s cloud-based software allows teams to collaborate and share real-time financial insights internally and with their tax accounting teams. Communicate with clients directly within Docyt’s shared workspace and request documents, ask questions, and improve workflows. Docyt’s accounting automation software makes the tax filing process easier.
Make Tax Season Easier for Accountants
Advancements in automation are helping tech-forward accountants and bookkeepers automate bookkeeping tasks during tax season. Docyt helps them shift the focus away from manual, repetitive tasks so they can focus on completing tax filing accurately and efficiently.
Leveraging the power of automation will help save time and resources for business owners. If you’re looking to automate your bookkeeping, you’ll need the right tool to help each step of the way.
To learn how Docyt can automate your accounting, set up a free consultation with us today.
