What are the reasons why you should automate your tax processes?
- It increases the efficiency of your team
- It simplifies record keeping
- It enhances the security of important records
- You get quick access to the data anytime, anywhere
Tax season is a stressful time for a great number of companies. It’s one of the many business processes that require a lot of attention to detail so that it remains accurate and compliant with tax laws. Thanks to IT solutions, it is now possible to automate this process. Keep reading to learn more about the different reasons you should automate your tax processes.
How Can You Automate the Tax Process?
There are different avenues that companies can use to automate this very detailed process. This includes tax and accounting software. Here, accountants are provided with tools that can compute taxes, fill out forms, and submit tax returns. Some software can also generate financial reports and export data to a tax professional to make tax filing faster.
Here at DynamIQ, we developed our DynamIQ Tax Module on SAP Business One. It is specifically designed to make tax processes easy and accessible at a click of a button.
Here are the reasons why you should start automating your tax processes.
It Increases The Efficiency Of Your Team
Your team suffers from manual, repetitive day-to-day activities, such as data entry, verification, and report generation. They usually spend 80% of their time and effort preparing the data aside from finding, extracting, and manipulating relevant data.
After that, they will transfer all that data in and out of spreadsheets to complete the necessary calculations. They are taking hours of manual labor. This is not the best use of their knowledge and expertise as this is not entirely their role as tax analysts.
To further maximize their roles, they should use enterprise resource planning (ERP) software like SAP Business One to help innovate this process. They can use this digital solution to focus on their other skills such as determining tax opportunities, challenging auditors, or working with business partners to optimize transactions.
By using automated tax processes, these professionals can focus on doing what they were trained to do from strategizing assessment reduction to finding and addressing assessment errors and implementing solutions, in which all these tasks cannot be automated.
It Simplifies Record Keeping
Gone are the days when accountants and staff need to store spreadsheets and tax documents inside file cabinets. Thanks to digital solutions, you can simplify record-keeping by storing all data in a centralized location.
ERP solutions and accounting software make it possible for companies to have just one data center for all company documents, including their taxes.
It Enhances the Security of Important Records
Tax data in the Philippines is confidential according to the National Internal Revenue Code. Any information obtained from taxpayers can’t be disclosed to anyone else. This includes tax returns, financial statements, and any other documents submitted to the Bureau of Internal Revenue.
That is why it’s important to find a place where you can secure these files safely. Doing it on hardware and even paper can be dangerous. Papers can easily be lost, destroyed, and even vandalized. On the other computer hardware can easily be corrupted.
That’s why automated tax processes offer enhanced security features. For example, SAP Business One is stored on a cloud. This has increased safety features that put a stop to cyberattacks. As you create files, they are also immediately back-up into the system, lessening the chances of files getting lost in the wind.
You Get Quick Access To The Data Anytime, Anywhere
Our tax automation process tool lets you have easy access to the information you need instead of spending hours searching for data.
It reduces human error since everything in these tools is programmed and can be customized according to your needs. This will result in accurate and complete tax records.
With the right access, the right personnel can also be provided authorization to view and edit these documents on the software from either their phone, laptop, or table.
According to this study, companies that are using automated tax processes completely pass audits without penalty more than those that don’t. This shows that software can efficiently do it, reducing the fatigue caused by this mundane task.
This article just showed you the reasons why you should automate your tax processes. Currently, plenty of businesses are still following the manual method: collecting many receipts and invoices, providing them to the accountant, and then hoping for accurate data.
If you’re ready to embrace technology by automating your tax processes, whether in part or end-to-end, you can always reach out to DynamIQes today. We are an authorized distributor of SAP Business One, and we have the best solution for your tax processes — our DynamIQ Tax Module!