How technology can simplify complex tax scenarios
The growth of small businesses boomed during the pandemic. Business applications grew substantially in 2021 when compared to previous years, and that trend continued into 2022.
Many new businesses are selling services or products online and as they grow and scale, managing orders and purchases domestically and internationally they must be in compliance. This can create some complex tax scenarios.
Enter technology. Technology is changing every sector, including professional tax preparation and tax professionals have the job of updating their practices to meet the ever-changing technologies.
As a business owner, what benefits could you see from using technology to manage business taxes? Digitization has already resulted in drastic changes in business as well as accounting, leading to better solutions to issues involving compliance and process management as well as ease of use.
What are some of the ways in which technology is currently impacting the tax industry and what impacts could it have on the industry in the future?
Go paperless
Globally, offices are committing to a paperless workplace and paperless processes. A majority of documents are being stored, created and transferred online. Tax professionals have jumped on the paperless bandwagon, as well.
What does this mean for taxpayers:
- Access to documents from anywhere with connection to the internet
- Ease of document sharing
- All documents securely stored in one place
- Jobs can be done more quickly and easily
As current technologies are updated and with the introduction of new technologies, tax professionals will need to adapt. This includes providing clients with options for communication such as video conferences, communication online, or via text messaging. Other features such as chatbots, virtual assistants, and online dashboards are becoming more and more popular with clients.
Artificial intelligence gives tax professionals the ability to sort through big data in order to provide detailed reports and data analytics. Why is this so important? Because it can ensure that all necessary compliance requirements, rules and regulations are being met. Additionally, AI can ensure that security measures are in place; errors and misstatements can be detected quickly.
Putting a brain behind it all
Using technology for tax purposes has led to an improvement in tax-preparation techniques, from secure and simple document sharing and data collection to modern communication methods and enhanced security against cyber criminals.
A business owner’s best bet is to work with tax professionals who are knowledgeable about new technologies as they pertain to and impact the tax industry.
At GYL, CPAs for businesses, our team of professionals stay up to date not just with the laws but with technology. They are trained to respond to the challenges you face today, as well as anticipate opportunities for the future.