Tax season typically requires businesses to file their income taxes between Jan 1 and April 15. When tax time arrives, it is common for business owners’ stress levels to increase exponentially. Navigating the sea of compliance, filing deadlines, regulations, exemptions, and taxes can be a headache for the uninitiated. Titan Merchant Services aims to assist business owners by sharing useful tips about preparing for and filing taxes at a corporate level.
Understanding the Impact of COVID-19 on CPA Firms and Financial Institutions
In 2020, accounting firms and financial institutions – like the rest of the world – experienced more ups and downs than ever before. As if tax season isn’t already stressful enough, COVID-19 is making things that much harder for businesses. With no clear end in sight, accounting and financial firms will need to find ways to effectively navigate these rough days ahead.
A major game changer for accounting businesses and their tax clients was the amount of tax law changes (i.e., how and when to file). Due to remote working arrangements and re-prioritizing projects, the write-up work that a business does for clients has become even more cumbersome and time-consuming.
What can you do to reduce your team’s burden when handling post COVID-19 tax write-up?
Research Latest Tax Reforms
If you want to create accurate taxable amounts for clients, it is important to keep track of the latest tax reforms. In addition, all team members must be aware of these tax law changes. A couple of ways to know the current year tax slab’s changes is to join accounting forums online and follow tax-related news.
Basic Preparations
Don’t start preparing from January because you need a lot of time. Prepare tax reports and services as soon as possible. This ensures that your clients’ revenue accounts and expenditure are prepared in advance. Other factors you may need to address include:
- Moving data into a cloud database to enable easy and secure access.
- Keep both contractor and employee tax information readily available.
- Manage payroll according to your state’s employee recruitment law.
- Ensure that all bank reconciliation statements are up to date.
- Create depreciation accounts for clients’ assets as per the standard depreciation rate.
- Use digital accounting tools for bookkeeping and recording client accounts.
Update Taxation Software
Using the latest taxation software and technologies allow financial institutions and accounting firms to create error-free tax returns as well as improve the efficiency of their staff and business.
Contact us today to find out how TITAN Merchant Services
can improve your earnings this tax season!
