Tax time is hard enough. Don’t make it harder by keeping your expense data out of reach. Instead, keep data where it should be: at your fingertips. Automated expense tracking makes historical expense report forms searchable and findable at a moment’s notice, unlike stacks of paper or enormous Excel files that take an eternity to access.
A stack of paper does not equal expense data – it equals a stack of paper that shelters specific expense data somewhere between the top and bottom page. Searching for information every time there’s a request isn’t just an internal time waster. Outside tax advisors and auditors aren’t going to stop the meter while they’re waiting, or searching themselves.
So save time and reduce anxiety come tax season by making expense data manageable with expense tracking software. You'll thank yourself for staying on track because you will:
Take advantage of all the credits and tax breaks available to you
Businesses of all sizes often miss out on available tax credits. Companies should be aware of special tax breaks and credits that might apply, however, the finance department has a finite amount of bandwidth, and seeking out tax advantages often takes a backseat to day-to-day operations.
These credits can be significant. Missing out on the potential savings can be detrimental to the bottom line. By automating expense tracking, you’re freeing up bandwidth to discover and implement the strategic tax initiatives that can not only pay big this year, but for many years to come.
Suppose you’re in the enviable situation of needing to reduce your tax bite for next year. Automated expense tracking also makes it easy to prioritize and capitalize on end-of-year expense acceleration.
Avoid trouble with auditors
Auditors seek out red flags. When you scramble to compile expense data, along with the corresponding paperwork and proof, you are far more likely to raise red flags. Conversely, automated expense tracking allows you to easily document expenses based on pre-determined tax rules throughout the year and then pull data in a clear, easy-to-read report come tax time.
Maintain a good relationship with your accountant
It’s normal for small and mid-sized businesses to use outside accountants. And like most of us, accountants are more apt to succeed when the necessary project information is on time and organized. When accountants receive organized, timely records, they can devote more time to deductions. When they don’t, they need to spend more time on tedious compliance-oriented tasks. Outside accountants and consultants can be expensive. Automated expense tracking can ensure they’re billing you less time while focusing on high-value activities.
Experience way less stress
With automated expense tracking, all your data – whether it’s last week, last month or last year – is available online 24/7 in a secure environment. When everything you could possibly need is just a few clicks away, you can breathe easy knowing there’s no question or data request you can’t handle.
Expense reporting doesn’t just affect your finance department at tax time. It affects every part of your business year-round. Learn why you shouldn’t wait to be asked to fix it.