Adding an automated tax management software solution to your arsenal of accounting software can free up resources that can be put to better use elsewhere. Instead of spending that time worrying about taxes, you can put it toward more in-depth analytical accounting processes that can help your business grow and generate more revenue. A tax management system simply saves you from stress. In this article, we listed and explained what sales and property tax management software are. Why not dive in now?
What Is Tax Management Software?
The common taxpayer can rely on the assistance of tax management software to file their federal and state income tax returns with confidence. You can save time and money by preparing your taxes at home with the help of online software, and you don’t need any special knowledge or training to use it. Almost all tax preparation applications have tools to help you answer typical queries about your taxes if you need more support. Also, common tax terms can be defined, a step-by-step guide can be provided, and a live chat or consultation with a tax expert are all options.
How Does Tax Management Software Work?
You can either fill out a series of questions in an interview format or follow a series of prompts on a series of forms while using tax management software. You can also easily import previous tax returns, W-2s, and other proof of investment and salary income with the help of the intuitive navigation features included in most tax management software. Also, with the program doing the heavy lifting for you, you can save a ton of time on your taxes.
It is common practice for tax management software to do a diagnostic check once you have entered all of your data. Before you file, they’ll make sure everything is correct and up-to-date, and see if you qualify for any income adjustments, deductions, or credits (like the one for having a child or driving an electric vehicle). If you’re not sure where you fall this year, check out the 2023 tax brackets to see if you qualify for any of the available tax credits.
The best tax management software will also be up to date on all the new regulations. Your tax refund can be followed up on through either the company’s portal or the IRS website once you have filed.
What To Look For in Tax Management Software
Make a list of the features and functionalities you need in an accounting or tax administration platform, taking into account the unique requirements of your business and industry. Here are a few options to think about:
- Automated Data Entry: Using tax management software can save your staff the time and effort of keying in data by hand. You won’t have to worry about human error when it comes to adding financial data to the required paperwork because that process is automated.
- Global Tax Support: Global businesses may rest assured that their tax information is being calculated and reported accurately via tax management software. Accounting software can do calculations and currency exchanges automatically, saving you time and staff.
- Consistency Across Forms: Accounting software suites often include tax management software as a standalone module. This structure guarantees that all of your fiscal information is uniform across all modules.
- Accessible Files: With the help of tax management software, you and your accountants will be able to keep tabs on all taxable financial transactions and spot any unforeseen shifts.
Best Tax Management Software
The following are the best tax management software you can opt for:
#1. Manager
Manager is a free comprehensive accounting suite suitable for businesses of any size and represents one of the most cost-effective options. There are no annoying commercials or time constraints, and the entire feature set belies zero cost. Smaller establishments in the retail, food service, nonprofit, and academic sectors benefit the most from it.
#2. TurboTax
One of the most well-known pieces of online tax prep software is Intuit’s TurboTax. It’s also a great option for investors because it can import investment earnings and losses from many accounts. Traditional stocks, cryptocurrency, bonds, ESPPs, robo-investments, and rental income are just some of the investment types that can be imported into TurboTax. Also, for those who like to keep their investments varied, this is a fantastic option.
#3. Xero
Xero is a cloud-based software designed with small businesses in mind that can manage a wide range of tasks, including the preparation of tax returns. It centralizes all of your accounting information and streamlines all of your procedures by automating data entry at every stage. Furthermore, its affordability and ease of use are praised by many who have tried it.
#4. H&R Block
H&R Block is competitive with TurboTax since it provides similar services at a lesser cost. It’s one of the most popular options for tax preparation software because of its user-friendly layout, thorough guidance through each tax form, and reputation for reliability. The free online filing option from H&R Block is straightforward to use, and it even allows you to import your tax return from another service provider from the previous year. In addition to being one of the free tax management software, there are four paid tiers available for those with more complex returns: “Basic,” “Deluxe + State,” “Premium,” and “Premium & Business.”
#5. Dynamics 365 Finance
Small and medium-sized enterprises (SMEs) can benefit greatly from using Dynamics 365. Since it’s hosted remotely, your business can begin with the bare minimum of functionality and upgrade as it evolves. Also, the tool is easy to use despite its robust automation and fundamental accounting features, so you never have to worry about purchasing a system with more features than you actually need.
#6. Mango Practice Management
Mango Practice Management provides a set of resources that simplify daily operations. It also keeps tabs on how much time is spent on various customer services, makes job management easier, and makes file sharing and e-signature gathering more secure.
Furthermore, Mango Practice Management is an all-in-one solution for managing files, tracking time, analyzing data, and communicating with clients. It also includes certain features found in leading project management programs. In addition, Mango Practice Management works well with other business applications.
#7. Avii
Avii is an all-in-one accounting team workspace that is provided by a software solution. In order to facilitate better client-practitioner relationships and outputs, automated accounting software provides potent instruments for automating workflow connections.
Avii’s integrated suite of products improves the management of accounting practices across the board, including tax, advisory, audit, compliance, and management consulting firms. However, the Avii platform integrates your workplace, accounting, and client interactions in one central hub, just like the best real estate property management software.
#8. SAP S/4HANA Finance
SAP automates a number of procedures, which optimizes and expedites your tax processes. It also gives you a consolidated view of your accounting data in one place, giving you greater command over your finances.
In addition to expediting your capacity to watch all compliance activities and make adjustments, as needed, the platform also makes it easy to deliver all the essential paperwork to the relevant legal bodies to ensure your taxes are done on time.
#9. TaxAct
If you’re self-employed, have multiple sources of income, or run your own business, you should look into TaxAct. Freelance earnings (including 1099-NEC), business earnings, and agricultural depreciation all fall under the “Self-employed” tax bracket. In addition to stocks, the sale of a home, and rental property income, this policy also covers circumstances contained in the company’s Premier tier.
Under the Tax Tools menu in TaxAct, you’ll find a quite powerful calculator. However, if you’re familiar enough with the lingo, you can experiment with the tool to acquire a rough estimate of your projected taxes without making any firm plans.
#10. Sage Intacct
Many people like Intacct because of how flexible and adaptable it is. In addition to its standard accounting features, this platform also provides robust tax administration capabilities and can be adjusted to meet the unique requirements of any enterprise. It also has role-based functionality and security to guarantee that your data is kept secure and only accessible by the employees and partners you designate.
Sales Tax Management Software
Sales tax management software is a specific kind of cloud-based software that can assist firms in managing sales tax compliance. The program interacts with e-commerce platforms, marketplaces, and accounting systems to facilitate tax reporting and filing, and it provides real-time sales tax rates and laws for various countries. Sales tax management software also aids businesses in remaining compliant with sales tax legislation, minimizing the possibility of errors and fines, conserving resources, and refocusing attention on expanding the company.
#1. Webgility
Webgility is a sales tax management software designed to streamline the process of calculating, collecting, and remitting sales tax for online retailers. To help businesses keep tabs on sales, taxes, and fees in real time, the program interacts with a wide variety of e-commerce platforms, marketplaces, and shopping carts. Webgility also provides a sales tax compliance service, which uses data on products and shipments to determine sales tax rates, completes sales tax returns, and remits tax payments to the appropriate state and local governments.
#2. Canopy
Businesses can streamline their sales tax compliance with the help of Canopy, a cloud-based sales tax management software. The program streamlines the process of collecting, calculating, and remitting sales tax, and it includes up-to-date sales tax rates and regulations for every jurisdiction in the United States. Canopy also interacts with a variety of e-commerce platforms, shopping carts, and point-of-sale (POS) systems, allowing businesses to control sales tax across all channels from a single dashboard. Exemption management, sales tax reporting, and audit defense assistance are just some of the functions included in the software.
#3. Lovat
LOVAT simplifies tax compliance for businesses by facilitating the electronic filing of tax returns and declarations, making bookkeeping available online, and collecting and aggregating sales data from a wide variety of sources. It covers 57 different nations and provides tax education, live expert support, and a wide variety of monitoring tools. LOVAT also claims to be able to fix the issue of tax reporting in a matter of minutes. Though compact in size, LOVAT has enough punch to handle all of your international VAT needs.
#4. Vertex Cloud
Sales and use tax calculation, returns, and exemption certificate management are just some of the services that Vertex excels at providing for large businesses. The sales tax management software is meant to streamline the process of calculating sales tax, and it includes up-to-date sales tax rates and regulations for every state and province in the United States and Canada.
Businesses can manage their tax compliance in numerous countries from a single platform with the help of Vertex, as it interacts with multiple ERP systems. It also helps with tax research, international tax solutions, and audit defense.
#5. Taxify
Taxify is a web-based sales tax application that can streamline the sales tax compliance process for companies of any size. The sales tax management software is compatible with a broad variety of e-commerce platforms, shopping carts, and accounting programs, and it displays accurate sales tax rates and rules for all 50 states and DC. Taxify is a cloud-based software solution that helps businesses automatically calculate sales tax, account for tax exemptions, and file sales tax reports. Support for sales tax audits is also included in the program, giving firms the documents they need to comply with audit requirements.
Property Tax Management Software
Property tax management software is a must for any company engaged in the real estate or property business, as it automates and streamlines the various tasks involved in this line of work. It has many important uses, including automating return filling, streamlining tax payment methods, assisting with assessment validation, document management, sending automated push notifications, sharing data with connected departments and entities with a single click, facilitating financial decisions and accrual forecasting, and shortening the process overall.
Here are some more benefits of using property tax management software:
#1. Individualized Profile
A property tax management system typically allows users to sign up for their own accounts by entering their own credentials. Your sensitive financial, personal, and property data will also be protected in this way. In addition, there is a wealth of information and possibilities to investigate.
#2. Properties of a Track
You can create and modify your property list and then track them whenever you need to with the track property function, which is standard in all property tax management software.
#3. Enter Unlimited Data
The greatest property tax management software on the market, whether it’s the base or the platinum edition, will always let you input as much information as you need. Details about properties, client profiles, and other relevant data are often input and saved here.
#4. Modification/updating of Data
There is no ironclad rule stating that after data has been input, it cannot be changed or amended. As the user, you have complete control over your account and can make any necessary changes at any time.
#5. Online Payment
With the needs of the modern user in mind, practically every property tax administration software includes the option to make a safe payment directly from the program. The account information may need to be entered for this purpose. Many programs now provide multiple safe and convenient online payment alternatives.
#6. Verification
The payment status of property taxes can be checked and monitored with the help of specialized software. The specifics of the feature’s user interface can change based on the application.
Tax Management System Pros and Cons
The following are the pros and cons of the tax management system:
Pros
- Most tax software has a user-friendly interface and provides users with detailed instructions.
- You can complete your tax returns whenever it is convenient for you by using the Internet.
- Automatic data storage and retrieval for tax returns and related information is becoming increasingly common.
- Much cheaper than getting an accountant. It may be possible to file without incurring any fees.
Cons
- Return complexity and additional services result in higher-priced tier packages.
- One-on-one assistance from a tax expert is typically an additional cost.
- Maybe doesn’t provide access to the right resources or help when you need it.
- It does not support all possible tax returns. If your tax position is particularly complicated, you may need to hire a tax specialist at your own expense.
What Is Digital Tax Software?
All the way from collecting client information to delivering the completed tax return and billing the customer, a digital tax workflow streamlines the procedure.
What Is a Tax CRM?
Software designed specifically for accountants, tax preparers, and bookkeepers can be called an accounting Customer Relationship Management (CRM) platform. Although 62% of accounting organizations have some sort of customer relationship management system, just about 5% actually use it consistently.
Why Does It Help to Use a Tax Management System?
It’s easy and convenient to use a tax service online. Your home should be your office, so file your taxes there. You can avoid making an appearance at your neighborhood tax office with a stack of paperwork. The full tax return process could also take as little as an hour of your time.
Can I Trust Tax Management Software?
A tax return filed electronically is safer than one sent through the mail since the information contained inside it is encrypted. Data transmission between your tax software and the IRS or state tax office is also encrypted to prevent unauthorized access.
Final Thoughts
As you can see, there is no shortage of robust and helpful tax management systems from which to select; the next step is to determine which one is the best fit for your specific requirements. Choose a solution that is appropriate for the size of your company and the desired method of deployment. Payroll, billing, and budgeting are just a few of the other essential accounting tasks you’ll need to think about. Feel free to get in touch with us at any moment if you need any more guidance choosing tax management software.
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