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Friday, June 14, 2024

5 Ways A Modern Accounting System Helps You With Your Tax Filing

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[dropcap]M[/dropcap]any businesses and individuals are hiring the services of the accountants and tax agents to do the bookkeeping and tax returns for them. These professionals are utilizing the modern financial systems to efficiently reconcile transactions and record the items to their appropriate accounts.

The accounting systems help the tax preparers gather the relevant information properly. If you have this cloud-based application, you can provide the trial balance and general ledger to your tax preparer so that he can able to process your tax return.

Exporting reports and detailed summary of the accounts was also made easy using the cloud-based applications. Moreover, accounting systems are also being used to electronically lodge tax returns and submit them to the ATO for tax assessments purposes. To explain this further, you may consider these reasons that can help you with taxes:

1. Customize Financial Reporting

Financial reporting is an important aspect for the businesses and individuals to provide evidence to the tax preparers regarding their assets, liabilities, equity, income, and expenses. A financial report usually contains a balance sheet, income statement, and notes for material accounts. Some tax preparers require additional information to check the date and nature of a particular transaction such as receivable and payable invoices.

With the aid of the accounting systems, customizing reports is just a piece of cake. You can make your financial statements look impressive and professional in just a snap! You can able to generate audit-ready financial statements with detailed schedules for the material accounts.

Why do taxpayers need a customize report? Well, taxpayers differ depending on their industry and type of business. A profit and loss statement of trust is different from a company or partnership. A customized report is like a template in which anytime you can prepare the financial statements in accordance with the standards and your preference.

2. Electronic Lodgment and Compliance

The ATO accepts electronic lodgment based on the listed accounting systems in their website. Lodging tax returns, BAS, and IAS can now be stress-free because you will just need to click the form and it will directly be being forwarded to the ATO.

You can do it by yourself or otherwise, you can hire the services of the accountants and tax agents to save your time from doing the financials and taxes.

If you are located from the Southern region of Brisbane, you can find an Accountant TW Accounting Gold Coast professional to help you with accounting and taxes.

Moreover, hiring a tax agent will provide you an extended time beyond the 31st October deadline. You don’t need to feel hassle every time the month of October comes because your tax agent will responsibly lodge the tax return for you.

3. Promotes Efficiency and Flexibility

Manually encoding the transactions on your spreadsheet is time-consuming. Preparing the financial statements in the excel and formatting them in the PDF are the procedures for the traditional way of generating the reports.

However, these typical scenarios can change using the cloud-based applications. You don’t need to take time working on your accounts because you can link your bank account directly to the accounting system, import transactions using their template, or record the year-end transactions via manual journals.

The accounting system will generate these transactions and layout them into a beautiful audit-ready financial reporting format. Moreover, you can also lodge tax returns and activity statements right from your accounting systems.

4. Secures the Financial Information

Some people think that using a cloud-based accounting system will be threatening as to the security of their financial information.

Accounting systems are programmed with two-step authentication that grants full and in-depth security of your financial information. In this way, it prevents the information from leaking and exposing it to the public.

These accounting systems contained high-security protocols to authorize access to certain individuals and restrict the individual from using the system. You don’t have to worry about your books and taxes because your information is highly secured in the system.

5. Cloud-based Filing and Storage

Many accounting firms are shifting from their outdated system to cloud-based systems because of the filing and storage issues.

Cloud-based systems can be readily accessible online and anywhere unlike the traditional desktop version software. It is also challenging for the accounting firms to use the remote desktop version just to access the files of the client. Usually, the desktop versions are slow and prone to encoding mistakes due to the fluctuating internet connections.

You don’t need to worry about the storage because cloud-based systems are now programmed with storage filing options. You can upload and drop your attachments, contracts, summaries, supporting schedules, or documents that you can use for your tax returns. In this way, when the tax preparer asks you for some documents, you can just easily export them from the accounting system.

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