Last updated on July 15th, 2022
Firms of the 20th century believed in traditional tax filing systems. They used notebooks and paper ledgers to store their data and later moved to digital software for the same. However, both these methods had one common problem – they maintained data locally.
With time, some drastic technological advancements took place, and the world around us started becoming digital. Firms were introduced to cloud accounting and cloud-based tax filing.
Cloud-based tax software is one such noteworthy adaptation by organizations in recent times to meet the competitive market requirements. The main reason organizations switch from traditional accounting systems to cloud-based accounting systems is to have centralized financial data for tax filing, lower cost of maintenance of servers, authorized access to the system, and on-demand financial summary of the organization.
With features including but not limited to flexibility, agility, scalability, and technical integrations with big data tools and IoT, cloud-based taxation has helped tax firms to meet client demands with the utmost ease.
Here are the ways cloud-based tax software help accountants achieve enhanced growth.
1. No Installation and Maintenance
Managing the tax process with all the apps is crucial for every accounting firm. This means that your IT team will have to maintain and install the updates manually. All such processes consume a lot of time and decrease the productivity of your organization.
This is exactly where cloud-based tax software provides the advantage of no installation and maintenance. Also, other processes such as installing the updates are taken care of by the service provider. It helps in saving money, resources, time, and improve productivity during the tax season. Also, cloud-based tax software offers automatic backups that are helpful in case data recovery is required.
2. Enhanced Productivity
A tax firm is generally judged by the accuracy of its tax reports and customer service. Hence, to maintain a firm grip in the market, firms need to ensure that the quality of their services never goes down.
A cloud-hosted tax system helps report and maintain the tax data at one location and is available only to the authorized personnel. This reduces manual errors and saves time for the tax preparers.
3. High-Performance Computing
If you use a locally installed tax software with multiple app integrations and loads of data, there are chances that your system will slow down. This means that it will take more time for processing, decreasing the productivity of your employees.
However, cloud-based tax software usually run on High Performance Computing (HPC) servers. This means that there will be no performance lag even if you process loads of data and integrate multiple applications.
4. Remote Access
Access to the clients’ tax data at all times is crucial for any preparer. However, things may not go as per your plans if you use locally installed tax software. For instance, if you’re on vacation and your client needs your advice for filing the taxes, there is no way you can offer your services.
The adoption of cloud-based tax software and applications by firms facilitates access to financial data any time, anywhere via the Internet. Using such software, an up-to-date view of an organization’s tax information is always available, enabling tax firms to streamline the filing process.
5. Real-Time Data Updates
With growing competition and staying in touch with reality, real-time changes in tax data is necessary for any organization.
With cloud-based tax software, not only the generation of the financial and tax reports in real-time is an achievement, but any change in the accounting data is reflected in real-time. Thus, organizations and their employees always have an up-to-date view of the current financial and tax situation.
6. Customizable Solutions
With the changes coming in the accounting world with new compliances and new tax rules, it has become mandatory for the accounting firms to adopt solutions that fulfill their needs.
With cloud-based tax applications, accountants get highly customizable accounting solutions to fit the business needs, creating a customized solution and an ecosystem of its own.
7. Authorized Access
Accounting data is the backbone of any organization. As everything around is going digital, the risk of cyberthreats also increases. Hence, the security of the data becomes even more critical. Any data breach can hurt your business and further spoil your reputation in the market.
With cloud-based tax software, only authorized persons can log in to the system and access the data as per the rights assigned to them. Reputed cloud service providers also monitor your data regularly for any unusual activity and deploy multiple CCTV cameras at their data centers to ensure your tax data’s physical security.
8. Reduced Paperwork
A traditional tax process is based on tedious paperwork and requires maintenance of the papers in the form of receipts, invoices, tax forms, etc. It also increases the risk of tax data theft or any damage to the data (as the paper is highly likely to get damaged even at a slight contact with your coffee mug).
With cloud-based tax software, since the data is maintained on cloud-based servers, the need for paperwork goes significantly down in the digital world. This helps minimize the errors and leads to an effective way of staying updated on the tax data.
The demand to quickly respond to the financial state of the organization across the globe has prompted businesses to adopt cloud-based tax software. This adoption has helped firms to up their tax game and stay relevant in this highly competitive market.
Wish to know cloud-based tax software can help your organization? Get in touch with our Solutions Consultant at 855-223-4887.
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