PayPal Stories Archive

Without the right technology, tools, and advice, tax season can become quite the headache for small business owners. Between scrambling to pull together all the right paperwork, meeting filing deadlines and navigating new codes and regulations - you’re likely counting down the days to April 18.

 

By leveraging help from the right advisors, as well as cloud technology, you can make this busy time of year more manageable. Here are some top tips to make tax season a breeze:

 

Using the right combination of cloud accounting software and integrated tools will save you time and money during tax season, and prevent reliance on spreadsheets or outdated software with old data.

 

With all of your data in one place in the cloud, tax calculation is much more simple. Cloud-based software will do most of the work for you, and best of all, you can access it online from anywhere at any time – using a laptop or mobile device.

 

In addition, considering choosing e-filing and e-payment so you don’t have to print and fill out any forms by hand. Today, most states provide an e-filing option or require filers do so. These are just some of the technologies you can use to ease the burden of tax time.

 

Small business owners should be thinking about their taxes year-round, rather than an early-year rush. Bruce Phillips, CPA, and CEO of accounting firm, HPC agrees that December is typically too late for small business owners to start thinking about their taxes. He recommends leveraging partnerships, like the one between Xero and PayPal, to stay on top of things. 

“Taxes are one of the most significant expenses that a small business can have and yet they typically spend the least amount of time dealing with it,” Bruce says.

 

“Using Xero and PayPal and getting accurate, timely financial information will actually give you up-to-date information all year long, so you can stay on top of and talk about your taxes before it’s too late.”

 

When your payments feed directly into your accounting software, you can keep your accounts in order by reconciling them on a regular basis, and ensure that your accounting information is always up-to-date. Best of all, when your financial data is flowing into your accounting software, on one single ledger in the cloud, collaboration with your accountant is only a click away.

 

When it comes to tax planning, you need accurate information to do so. Leverage real-time data from your cloud accounting software, combined with advice from your accountant, so you can fix any problems that may arise before the tax bill arrives.

 

“We try to push our clients to do forecasts, budgeting, be proactive and be forward thinking,” Bruce says. “So, when you get advice in the summertime and in the fall, you can actually plan and do something about it before you get the tax bill.”