When tax time comes around, the average business owner probably doesn’t immediately think about the value of document management systems – but they should.
Tax time has people heading to government websites for forms and tips. It sees them racing to call or text their CPA to schedule an appointment. These are definitely helpful solutions when it comes to the puzzle that is taxes.
But another way to solve most of the tax problems out there is to change the approach to managing tax documents. The proper document system will support an organization no matter how they choose to do their taxes and no matter how many complications they face.
IMPROVING ACCESS TO IMPORTANT TAX DOCUMENTS
Most people would rather not think about taxes – until they have to.
But once that time of year rolls around, it can be a pain to find all the forms required to file, especially if this task is put off until the last minute.
Where are the W-9s for employees, or the 1099s for contractors? How about the itemized deduction lists, and industry- or organization-specific tax forms? Trying to track down everything at once can be a headache, and is almost guaranteed to lead to mistakes.
Document management systems make it easy to stay organized, which is one of the top tax season tips out there. Benefits of proper organization of tax documents include:
- Easy categorization of documents by type, date, and department
- Eliminating the worries about losing or misplacing documents
- Keeping up on important dates, deadlines, and changes
Once an organization has made its tax documents accessible, they’ve essentially taken half the stress out of tax time. Whether they plan to do their own taxes or hand the information over to pros, smart document organization makes the process easier for everyone.
STREAMLINE TAX PROCESSES AND IMPROVE EFFICIENCY
Companies strive for efficiency in countless areas, including product development, financial planning, and staffing – so why not take the same approach to taxes?
Handling taxes in a disorganized fashion makes it a task that’s hard to tough through, and usually the person responsible for it is ready for it to be over. But once information is easily accessible, it becomes possible to streamline it, which allows owners to work more efficiently and discover ways to gain value from the process.
For example, companies that retain the same information like tax ID numbers, business classification, and other data points year after year can eliminate repetitive data entry simply by importing their information in from the previous year.
But the benefits don’t end there. By speeding up the filing process through rapid access to information, organizations will have more time to consider deductions, credits, and additional savings opportunities they may have otherwise missed.
DON’T FORGET ABOUT SECURITY
There are more risks associated with tax time than falling behind schedule and being forced to pay penalties. There’s also the theft of valuable tax documents to worry about.
These forms contain a plethora of personal information including names, addresses, phone numbers, bank account information, and more. When a person uses a secure document system to store these data points, they can take comfort in knowing the information is protected.
MINIMIZING BUSINESS DISRUPTION
Even if a company never faces any unexpected problems during tax season, one of the main issues with it is that it represents a business disruption. The process typically takes a lot of time, which translates to less time spent on the business.
Document management systems are known for their ability to streamline countless workflows, not just taxes. Speeding up the process without sacrificing efficiency means it’s possible to get back to work quicker – maybe even with some money coming back from Uncle Sam.
DO BETTER WITH TAXES AND DOCUMENT MANAGEMENT
Having a proper document system isn’t just an item on the list of best tax season tips – it’s a move that can benefit organizations all year round throughout nearly countless processes.
The document management system an organization uses can shield them from feeling rushed, fearing audits, trouble finding important documents, and other common issues around this season.
Get a document management provider who understands your industry, and builds solutions around the complex demands of a business environment. This will help you do better with tax season, document management, and business efficiency in general.
For business technology solutions like document management and more, reach out to Doing Better Business today. We’ll be happy to provide you with an optimal document organization setup for tax season and beyond.
Topics: Document Management, digital documents, digital transformation, tax