Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
As an accountant or small business owner, staying on top of your taxes is crucial to your business's success. However, taxes are not always a good topic to talk about or do. But did you know that many great software options are available to help make the process a little easier?
In this post, we’ll discuss the five ways why financial planning tax software is the way to go. We’ll also look into Taxomate, Taxjar, and Taxify—the three top choices for tax, financial, and accounting software you can use. Let’s start!
1. Quick data import
You need to integrate the tax software into your accounting software, so it can have access to your business financial data and compute tax accordingly. With the integration, you can cut the time for manual data input and calculation and focus on more essential tasks in your business. Automatic transferring of data from one software to another also ensures accuracy compared to inputting each detail manually. You can also integrate your tax software to different eCommerce sites for sales tax computation and tracking.
2. Income tax and sales rate accuracy
The income tax rate is calculated by getting your net income and checking the tax rate provided by the government. You do not need to do the math anymore or check the rates as the tax software already got you covered. Your payroll, payroll tax, and other tax deductions will be computed, filed, and remitted.
As an online seller, you must have experienced sales tax’s vulnerability to change. It can change anytime as determined by locality, and it isn't easy to keep up. With tax software, these changes are updated automatically. Hence, tax computations are always accurate.
3. Tax exemptions inclusion
Another area you need to be wary about as a business owner is tax exemptions. You can exempt the buyer from sales tax if they are not the product's end-user when you have a sale. There are also special cases when taxes should not be applied, and they are made official through a tax exemption certificate. Ask your clients for these, and then these certificates are stored in your tax software, which automatically applies for the tax exemption.
4. Complete data
With real-time and complete data from your tax and accounting software, you can generate reports anytime. You have the visibility of the taxes you have collected—money that is not included in your income and you cannot spend. Instead, you can spend your after-tax income, which you can easily compute for on the software. All computations are done automatically to help you decide how to spend your profit to scale your business.
5. Automatic tax filing and remittance
Last but not least, skip the hassle of visiting the tax bureau in person and do everything online also through the help of your tax software. After computing your taxes, you can also use the tax software to remit what you collected. If you use a small business accounting software and have your business bank account, income accounts, or credit card integrated, the payment will be smooth, quick, and paperless. You won’t fear paying late and getting penalties after.
Taxify, Taxjar, and Taxomate Financial Tax and Accounting Software
It may add you a little cost signing up for tax software plans, but you are making the right investment because of the benefits you’ll get above. See all these features at work when you use a tax and financial analysis accounting software like Taxify, Taxjar, or Taxomate.
Taxify
Taxify offers different solutions from value-added tax, sales and use taxes, shipping and distribution compliance, and tax and regulatory reporting. It assists you from the data tracking and storage, computation of your taxes to filing taxes on time. All calculations are accurate as the system has stored different local and national tax regulations in different jurisdictions. As a result, you know that you are charging and paying the correct taxes every time.
Taxjar
Link Taxjar to your eCommerce stores on Amazon, eBay, Etsy, Shopify, Stripe, and more to enjoy sales tax compliance and reports according to specific rules and economic nexus determined per place. It pays to know the ever-changing rules of taxes, but Taxjar can also handle this for you. After-tax computation, you can also file and remit taxes through this software.
Taxomate
If you are particularly interested in tax software integrating Amazon, Shopify, and eBay, you can use taxomate. It can track the number of orders depending on your sign-up plan. If you have just begun your small business, you can sign up for the starter plan for immediate tax preparation, computation, and filing right away. As your business continues to grow, you can upgrade to plans with more offers and features.
Tax Assistance From Unloop!
Financial and accounting software are essential for businesses that regularly file taxes. The most popular tax software are Taxomate, Taxjar, and Taxify. These programs let you import data quickly from your accounting software into the system so that all of your information is accurate. Specific tax exemptions are also tracked using this software. Even in tax filing and remittance, this software can assist you. If you need assistance managing your taxes, bookkeeping, and accounting, we can be your partner here at Unloop. We offer bookkeeping, income tax, and sales tax services for eCommerce sellers like you! You can give it a call at 877-421-7270 if you want to know more about our offers. We’d love to talk to you!