Tax season is an angst-provoking experience that the majority of small business owners dread. It is, unfortunately, one of those things in life that can’t be ignored and is one of the most important, business impactful tasks you are responsible for completing. The sheer amount of potential data needed to complete your taxes and to ensure alignment with local and state sales tax requirements puts this somewhere near the “Mission: Impossible” category.
The good news is that you do not need to become a CPA to navigate the tac world. In fact, if you are using a capable POS system that has been configured to track what you need for tax season, you may start to look forward to this time of year. Understanding the steps you need to perform to get your taxes out the door in an accurate, non-audit invoking way remains consistent. But how can you leverage your POS solution to make tax season less of a hassle? Easy: with a point of sale tax tutorial.
Leveraging Your POS Solution to Keep Transaction Records Organized
Your tax records all revolve around your intake and expenditures, and it is here that we will start. The unfortunate reality is that many small businesses are still running legacy POS systems that require far too many manual processes to allow your taxes to be accurately completed. A coffee stained ledger page here, a spreadsheet that is missing two weeks of data due to a hard drive crash there, and you have all the makings of a tax season that will leave you gasping for breath.
Your POS system must be an asset in your tax preparation activities. A truly innovative POS solution will have all of your expense and transaction records stored in the cloud for safe keeping. These should be accessible and sortable via easy to read and customizable reporting, including the use of spending categories for ease of reference. An additional benefit of storing this data in the cloud is the flexibility of gained by easily importing your tax information into a variety of cloud-based accounting options.
If you discover that your POS system does not possess this level of transaction insight, expense tracking, or record keeping, you should consider upgrade or replacement of your POS solution. Modern POS systems will remove the need to save piles of paper receipts and the updating of mistake-prone ledgers and spreadsheets and gives you a secure way to use and access all of your tax information. Your deductions are accurately tracked, and you can engage a tax professional as necessary with the confidence that you can supply them with accurate, high-quality tax data.
Reducing Tax Preparation Costs and Fees
It wouldn’t be a point of sale tax tutorial without addressing costs and fees. While many modern POS solutions have the ability to export data with ease into online accounting and tax solutions, it is in your best interest to at minimum consult with a tax accountant. Your tax professional will provide you with details of the tax code in your area, including localized tax credits, federal and state tax code changes, sales tax details, and even if your business structure should change.
Armed with this information, you can further customize your POS system to provide you with the data you need. This gives you a stronger point from which to start your returns, and you can execute reports against this data as the year progresses to enable you and your tax accountant to adjust any withholdings, payments, or charitable contributions as needed.
Plus, your tax professional will advise you on the retention guidelines for each aspect of your business and data, keeping you well prepared for audit scenarios while presenting you with the opportunity to reduce your data footprint by expunging unnecessary data.
Connecting with a tax expert can provide you several key advantages not only at tax time but year-round. They’re able to give you valuable insights not just into what information your POS system and accounting software should but will also provide important advice for your financial planning and forecasting activities.
Having an innovative type of POS solution aligned with your tax goals in mind becomes a business asset with innovative options you can take advantage of to reduce the impact of the time and the costs of tax preparation. Your business can also use the information gathered here to identify methods of improving your internal processes.
Taking the Initiative by Using Tax Data
The tax preparation process, as daunting of a task as it is, can prove to be a valuable experience. As you dive into your records of for the year, you will quickly see where your data collection gaps are, which puts you in a prime position to fix those gaps and to better align your POS solution to meet your business process and tax requirements. This, in turn, provides you with sales and analytics information, providing you with the opportunity to take the initiative to make process changes that drive your long-term success.
Your tax data is important to this point of sale tax tutorial as it contains valuable insights into how you are currently running your business, and these can be leveraged into making concise changes to streamline how things run going forward. When you combine this data with the information provided to you by your tax accountant, your finances will be more accurately aligned with your business goals. Your business goals themselves get a refresh thanks to better data collection. This presents you with highly accurate and realistic views for your forecasting, making pinpoint changes more viable than ever before.
Engage a Small Business Expert for Your Point of Sale Tax Tutorial
Tax season is not something to be taken lightly, but it doesn’t have to be something that you dread. Engaging a tax professional will answer more questions than you knew you had while providing you with glimpses into changes you need to enact within your POS and data infrastructures. You should handle this in a way that leaves the door open to upgrading your POS solution so that it can best align your data with required business data collections and future business goals.
Need expert advice about how your POS system should evolve to meet your dynamic tax needs? That’s what talech is here to help you accomplish. We offer a wide range of hardware and software solutions to choose from, and we take the time to address all of your questions and needs to deliver a concise solution. Contact us today to sign up for a demo and to learn more about how talech can be your expert POS partner.