Tech

Tax Software vs. an Accountant: Which Is Right for You?

Many business owners and senior executives do not differentiate between these concepts. In fact, they are closely related, but there are still differences. You should understand that any workflow automation and custom software development requires a certain budget. In order for the investment to quickly pay off and bring the maximum benefit to the company, you need to first conduct a small study of the local market and legislation.

Why do companies neglect to automate tax accounting?

In our experience, the most common reasons organizations are slow to invest in tax technology fall into one of four categories:

  1. Indifference;
  2. Fear of investing in unknown technologies;
  3. Poor data quality;
  4. Planned transformation of financial departments in the future.

In fact, specialized software specifically for calculating taxes is needed either directly by the tax authorities or by companies that conduct mixed activities. It is desirable to combine holdings and corporations that conduct separate accounting with a common tax module. This is important because the amount of taxes in the conduct of joint activities may differ significantly from the amount that must be paid to each structure separately. You can find out more on this topic at djangostars.com.

Who needs bookkeeping?

Are you trying to set up accounting in the company? We offer a simpler solution. Entrust the setting of accounting to a special organization. Apply for an accounting organization in an IT company if:

  • You have just created your own company;
  • You automate accounting;
  • You are mastering a new kind of activity;
  • You want to reduce your accounting costs;
  • Your firm is growing rapidly.

What does the organization and setting of accounting consist of?

Professional tax software, just like accounting applications, can work in several directions:

  1. Software implementation includes several steps. You need to start with a thorough business analysis. Based on the audit, the IT team will help you choose the software. Also, specialists immediately set up transactions, accounting policies for personnel and the procedure for maintaining all documents. Be sure to set up the sequence for closing the reporting period. If there is such a need, the development company trains your employees and the chief accountant to work with the program.
  2. Resource loading. We will optimize the cost of organizing accounting for you. Our experts will analyze the volume of documents, software and the number of accounting transactions. After the analysis, you will find out: do you need a staff accountant and how many specialists are best to hire.
  3. Development of workflow schedules. The workflow schedule regulates the movement of all primary documents in accounting. This is the main tool for organizing the accounting of a company and individual entrepreneur. Without a schedule, the accountant runs the risk of posting the document in the wrong period. Hence, errors in the calculation of taxes and penalties from the tax office. Develop a competent scheme for the movement of primary documentation and the company’s workflow will be in order. Our experts are ready to develop a workflow schedule for you.

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