As we approach the end of another year, lots of businesses are thinking about, have started or are well into their year-end tax planning so they can estimate their 2016 tax burden and file in full compliance with the IRS, State and local governments. Business tax planning during the last couple months of the year helps you avoid big, bad surprises! It gets you squared up with what you will owe the IRS in April so that you can budget your tax payments realistically and without regret. Your accounts payable (AP) reports contain vital records of expenses that lower your taxable income and therefore your actual taxes paid.
Business tax planning can look like anything from organizing stacks of paper receipts and manually crunching numbers on a calculator to simply entering a computer command to run a comprehensive AP history report. By the same token, revenue reports and profit & loss statements could either be cobbled together from a bunch of check stubs, photocopies, receipts and bank statements or accurately reported with a couple of mouse clicks.
Going paperless and utilizing AP Automation services is perhaps the single best thing you can do to make all of your accounting functions run more smoothly and get reported more accurately. Tax planning and compliance are perhaps the most crucial among these functions because you cannot thwart tax law (intentionally or not) and remain in business very long.
Less worry equals more productivity!
Digitizing all of your financial documentation will provide relief to you and your accounting team by making your revenue and expense data easily manageable and totally fluid. Tax planning, estimating tax payments and filing accurate returns will change from being a nagging, deadline-driven burden to a routine task when all the data is at your fingertips. Rather than focusing exclusively on taxes during the height of tax season, your accounting department will have more time to focus on improving your firm’s profitability.
AP Automation services and software from NEDocs enable you to fully automate your accounts payable record keeping by digitally capturing all front end data whether emails or paper invoices. Document routing and workflow automation programs automatically categorize and file AP data accurately for any kind of tracking and auditing that may be required.
Year-end tax planning gives you foresight into realistic tax liabilities and helps you accurately calculate your business tax payments. Automated reports dramatically improve the productivity of your accounting staff in preparing and completing federal & state tax forms for compliant filing.
Not just the tax but all of the facts…
Automating your Accounts Payable processes solves numerous other accounting issues beyond tax planning and compliance. Your general administrative functions will improve as AP automation helps you avoid such common administrative issues as:
- Paper invoice handling
- Tedious and costly manual procedures
- Slow and inefficient invoice and payment processing
- Errors and duplicate payments
- Higher labor costs for invoice handling and payment processing
Take back control, not only of your tax planning but of all your critical records management! Managing all of your documents electronically boosts productivity by giving your team the best available tools to carry out their crucial roles of bookkeeping and financial management. Eliminate all that time wasted hunting down documents. Keep track of purchase orders, receipts, packing slips, expense reports and much more with relative ease.
AP Automation and paperless accounting can also enable you more flexibility in staffing your accounting department. Having immediate access to digitized invoices and other AP files from anywhere on any device will help you reclaim valuable office space and focus more on serving your growing clientele.