Struggling with tax solutions?
Are you confused about which tax software solution to adopt?
Do more with less!
Well, this is the right spot for you to rest your eyes while sipping your Starbucks coffee! We will be discussing right from basics what exactly is tax software, the trends of 2024 and what are the top 15 tax solutions you can seek.
Tax Software- A Brief
Tax software solutions help businesses manage and file their taxes, stay compliant with tax laws and regulations, and reduce the risk of errors and penalties. The primary functions of tax software include calculating tax liability, generating tax forms and reports, and electronically filing taxes with domestic and cross-border tax authorities. It includes collaboration tools to allow tax teams to work together on tax preparation and filing and can be integrated with other applications to streamline the tax compliance process. Additionally, the software can be an integrated compliance suite or specific to individual processes such as provision, indirect tax, and transfer pricing.
Tax Software – Statistics
- 80% of tax administrations use data analytics tools.
- 75% of tax administration have machine learning capabilities.
- 50% of tax administrations have digital assistant tools, most notably chatbots.
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Tax Software Trends For 2024
- Enhanced Cybersecurity. As digital acceleration continues, hackers and cybercrime groups will take every opportunity to scour for highly valuable data. Personal information stolen from tax returns is a gold mine for hackers as they can use this data for financial and medical theft, and also for various forms of cyber attack. To prevent this, the Internal Revenue Service (IRS) issues the six- digit identity protection pin. In addition, software users are provided guidelines on best practices to avoid these types of attacks and become aware of vulnerabilities.
- Increased Tax Relief. Efficient tax collection leads to increased revenues. Technology aids governments in tax collections and initiatives like e-filing and electronic property enumeration reduce corruption and expand the tax base. Tax relief is important for taxpayers, but the system needs to be efficient and robust to be able to implement this. Using the best tax software, the enacted income tax rate cuts are efficiently affected by all concerned businesses and citizens.
- Adjusting Rules for Remote Work. Transitioning to remote work during the pandemic has a significant impact on the filing of taxes. As such it is driving some of the most critical tax software trends today. Some rules govern the taxation of people working remotely for in-state and a separate set of rules for those working for out-of-state employers. Employees face a potential double taxation scenario as most states assert the right to tax based on physical presence. Tax software will play a crucial role as hybrid work becomes a permanent employee option. Convenience rules, reciprocal agreements, and reverse credit are just some of the guidelines that will be integrated into tax software systems to effectively manage taxation in remote work.
- Tax software to Support Strategy. Tax administration is accelerating its shift to digital platforms. Top executives are realizing that to become more proactive at delivering strategic insights to the business, there should be an increased emphasis on tax technology strategy. The average time spent on tax compliance ranged from 162 to 274 hours per year. Using tax software can significantly reduce the time spent on tax preparation. The use of electronic invoicing, to cite an example, boosts not just productivity but also the timely collection of accounts receivables.
That’s the power of tax automation!
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Top 15 Tax Software Solutions For 2024
1. TaxDome
TaxDome is an all-in-one platform for the management of tax, bookkeeping, and accounting. It manages clients, documents, jobs, and teams. TaxDome reduces operating costs by replacing your accounting tech stack with a single platform that takes care of workflow automation, document management, and integrated tax CRM.
2. Mango Practice Management
Mango Practice Management offers a suite of tools that make it easy to run your business. It tracks time spent on client services, streamlines workflows, and task management, and helps you secure file sharing and e-signature collection.
Fyn, formerly Bear Tax, is a tax software solution specifically designed to calculate the performance of crypto investments for tax reporting purposes. It is used by CPAs and accounting firms to compute crypto tax by using APIs. The Fyn platform performs digital asset accounting and is built for global enterprises.
Digita Professional Suite is a fully integrated software for accountants that offers tax and accounting solutions. It links software modules around a central database and manages personal tax, corporation tax, accounts production, practice management, and company secretarial solutions.
Avii is a software solution that provides a unified workspace for accounting teams. The automated accounting software offers powerful tools for automation that connect workflows between clients and practitioners and improve relationships and deliverables.
Taxaroo is an online accounting and tax practice management software that offers tools for boosting operational efficiency. The client organizers of Taxaroo make it easy to collect, manage, prepare, and share documents. It also offers a secure document portal.
Automated Tax Office Manager (ATOM) is a practice management software solution for tax and accounting offices that incorporates systems developed by leading tax professionals. As such, ATOM’s suite of tools can guarantee flexibility, scalability, and adaptability.
Once Accounting, formerly BaCo Tech, is a software solution that unifies all accounting data to optimize tax preparation and planning. It has an intuitive year-round tax planning feature and automates tax preparation.
Corvee Tax Planning is an accounting software solution that includes tools for multi- entity planning and calculates estimated task savings at the federal and state levels. This platform uses a questionnaire to develop strategies for clients. It also comes with detailed information and requirements from the Internal Revenue Service (IRS) as well as generates transparent calculations.
Taxfiler is an accountancy and tax software that offers tools for accounts preparation, corporation tax, personal tax, partnership tax, VAT filing, and for filing tax for trusts and estates. It also has a deadline diary that organizes all tax filing activities.
11. OIC Tax Planner
OIC Tax Planner is a tax resolution software that provides the required tax representation forms and current IRS Offer in Compromise regulations in one platform. It is the ideal software for handling Offers in Compromise, Currently Non-Collectible, Installment Agreements, Spousal Defense, CDP, and other IRS collection cases.
12. SeQwens
SeQwens is a practice management solution that simplifies tax and accounting processes through automation. It offers a wide range of tools, including a secure document portal, online client organizers, and other tools that enable tax and accounting teams to grow.
13. Taxjoy
Taxjoy is a messaging platform built for tax professionals to secure and streamline communication with clients. This tax software facilitates easy and secure document sharing for seamless tax preparation.
Aeco Tax Technology is a tax software that provides digital transformation services by analyzing your current IT strategy and providing a digital roadmap for your strategy. It automates repetitive tasks, facilitates change management, and provides integrated solutions.
15. TaxWorkFlow
TaxWorkFlow is a premium tax software and practice management solution that simplifies the tax preparation process by creating streamlined workflows. It allows users to customize tasks at the universal or individual client level and ensures that a full tax return is completed on time.
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The Benefits of Tax Automation
- Efficiency: Automating the collation of tax data allows qualified tax specialists to shift their focus on high-value tasks, such as discovering tax-saving opportunities.
- Accuracy: Incorporating a tax automation solution can eliminate the element of human error from data extraction and compilation processes.
- Cost reduction: Aside from the speed and accuracy benefits of technology- enabled processes, employing a modern software solution for tax automation is more economical than assigning specialized teams for audit preparation.
- Flexibility and scalability: Large corporations must keep up with legislation across various jurisdictions to prevent compliance issues. Modern tax compliance automation solutions ensure that changes in local tax laws aren’t overlooked when taxes are filed, avoiding issues with tax authorities such as penalties and fines.
- Better overview: Tax automation solutions gather and compile all relevant tax information in a centralized location.
- Data security: Contemporary tax automation solutions use high-level encryption for all sensitive data. Data encryption keeps your organization’s financial information secure, reducing the chances of fraud or other malicious activities.
Challenges For Tax Automation
- Tight Staffing Structures
- Getting Buy-In
- Proving ROI
Conclusion
The transition into digital tax collection has delivered unprecedented benefits but also challenges most notably in the area of security. The following tax software trends are set to influence how software products will be designed and used by tax preparers.
If your company wants to increase productivity and accuracy while remaining competitive in the accounting and tax industries, tax automation is a must-have. Streamline your workflows, improve quality, decrease errors, and increase revenue by utilizing automation, APIs, and AI. You can also establish your company as an industry leader in technology and a trusted advisor to clients, which will increase client satisfaction and staff retention.
Machines that can learn and adapt on their own will power the automation industry of the future. Recent developments in robotics, machine learning, and artificial intelligence are paving the way for the automation of once human-only jobs.
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