The world of tax accounting is changing rapidly. The technology available to tax accountants is more sophisticated than ever. From real-time reporting and data management to artificial intelligence and machine learning, there are many new options that will help you keep track of your client’s financials and stay ahead of the game when it comes to taxes. Some of these technologies help small businesses take advantage of all the tax breaks available to them. It saves them money in the long run and ensures that they comply with all the regulations.
Reports in Real-Time
Real-time reporting allows you to get the latest information on your clients’ tax accounts as soon as it’s available. Newer software automatically updates as soon as a new transaction is added so that you don’t have to wait until the next scheduled report. If a client has made a change within their account during the time between reports, they’ll receive an alert letting them know that there’s new information available and where they can find it. This can help small businesses tremendously, even with their tax audit defense, because all the data is in real-time.
Real-Time Monitoring
Different monitoring features allow users to keep up with what’s going on with their accounts throughout any given day by tracking things such as purchases made through credit cards or debit cards, ATM transactions, and even online payment processing. Whether you are managing your accounts or trying to get the big picture of what’s going on in your clients’ companies, monitoring tools are invaluable.
Accounting in the Cloud
Cloud-based accounting software facilitates the ability to access your financial information from anywhere, at any time. Cloud-based accounting solutions also offer more advanced features like automated bookkeeping, which eliminates double entry and helps you to save time. Cloud-based accounting services can be tailored to match your specific needs and usually include a combination of online tools, mobile apps, and desktop software that provide an all-inclusive suite of products for managing finances.
Artificial Intelligence and Machine Learning in Tax Accounting
Using Artificial Intelligence (AI) and Machine Learning (ML) to automate tax calculations is a game changer. In some cases, it is even leaving some tax accountants worried about the quality of their work. AI can be used to analyze data to find potential tax fraud or mistakes. It can also be used to identify areas of tax evasion or avoidance. And point them out before you make the mistake of filing incorrect tax forms.
CRM Software Solutions
CRM software solutions, also known as customer relationship management (CRM) software, are a type of business software designed to help manage business relationships. CRM systems allow businesses to maintain contact with their customers and potential customers. It can help sales staff log when they’ve talked to customers, and it can help improve customer retention as well. Many CRM systems include features that allow you to send customized emails and segment your customer list.
Blockchain for Tax Accounting
While most people are still trying to figure out what the blockchain is, innovative people are creating different ways to use it, including for tax accounting. The IRS has been actively pursuing blockchain applications for tax accounting, but the technology is still in its infancy. Blockchain could help the IRS track and audit payments made to the government, as well as monitor refunds. The benefits of blockchain-based systems include reduced fraud, instant payments, and better auditing capabilities. In addition to these advantages, many believe that blockchain can also make tax filing easier for individuals by removing some of the bureaucracy involved in filing returns.
Tax Smart ContractsÂ
Smart contracts are computer programs that execute an agreement between two parties. In tax accounting, smart contracts can be used to automate the calculation of taxes owed based on user input. Smart contracts are self-executing, which means that they are not dependent on human intervention to execute. They also tend to be transparent and immutable, meaning that they cannot be modified once written down into code or even after being deployed onto a blockchain network.
Conclusion
In general, there are many ways to improve your tax accounting. It’s important to stay on top of these technology innovations so that you don’t get caught off guard by an audit or, worse yet, a criminal investigation. Plus, technology can help you find write-offs that can save you big money in the long run.
