Get Shift Done: Management
Is Your Company Ready for an Audit?
Big or small, simple or complicated, no business or business owner gets excited at the thought of being audited. One way to lower the pain of a company audit is to prepare ahead of time and the key to doing so is to have the right accounting and tax software in place.
How does having the right software help?
If your accounting solution does not integrate with your other systems, you’re going to have a lot of trouble providing transparency, accurate reporting, and audit trails, all of which are things you want to have in place if you’re every audited.
Yes, integration with core software is the key. From point-of-sale systems to customer relationship management, payroll processing, reporting, and more, integration creates a seamless and direct transaction line from start to finish, with minimal manual interference and provides the transparent, easy-to-gather reports that will save you tons of time if you’re ever audited.
One of the most important integrations should be with tax calculation and reporting software. This enables companies to reduce manual intervention so they have more confidence in what and how they conduct tax record-keeping and reporting with the IRS and other governing bodies.
Some accounting software solutions automatically calculate rates to ensure business records are accurate, reflect changes to tax rates and tax limits, and also enable businesses to set tax defaults on sales and purchases. Not all do this however, so ask about this functionality when selecting a solution.
Whether state or federal tax, the ability to access up-to-date tax rates, calculations and changes is critical for businesses to keep clean and clear records and maintain reporting accuracy.
Having the right accounting software in place may not keep your company from being audited, but it will make a big difference in how much an audit will impact your business, especially in terms of time compiling the information the IRS requires.
Get stories like this one delivered to your in-box weekly: Subscribe to the GSD newsletter.
The GSD Management channel is brought to you by Work Market, the leading labor automation platform. Work Market empowers businesses and skilled professionals to unlock new levels of productivity, engagement and growth across the entire lifecycle of work. Learn more at www.workmarket.com.