For businesses, tax season is an unavoidable and inescapable reality. As Benjamin Franklin famously wrote, “In this world, nothing is certain except death and taxes.” However, doing your taxes doesn’t necessarily have to be a negative experience—even if traditionally it has always been a stressful, onerous task.
Here are a few common sense tips we at Cin7 believe will make this and every future tax season a breeze. Or at least bearable.
Before we get too far into the tax-season-tip weeds, there’s one thing you must do no matter what: Always. Seek. Professional. Advice. In fact, that’s tip #1.
You’re busy running your business, and as a business leader, you know that strong leadership requires delegation. You don’t have the time, energy, or even the expertise to do all the things, which is why you need to turn to the pros. In this case, a tax professional.
Tax professionals can provide personalized guidance, help you avoid costly mistakes, and identify potential tax-saving opportunities. Instead of wading through tax minutia, you can pass this tiresome yet vital task on to someone who is properly trained, and by doing so, ensure that you have error-free taxes, save yourself valuable time, and keep yourself out of the IRS cross hairs.
If you’ve ever walked into an office filled to the brim with papers, files, and other assorted items and felt instantly overwhelmed, then you’ve experienced disorganization. Not being organized leads to brain fog, lack of productivity, and frustration. Conversely, being organized clears the mind, helps you set and achieve goals, and creates a serene workplace.
What does this have to do with your taxes?
Keeping your records organized—as well as making sure they’re clear and accurate—makes for a smoother tax filing experience. If your records are accessible as well as handled properly, you’ll be way ahead of the game.
One of the best ways to stay on top of your annual taxes is to know key tax deadlines and to give yourself plenty of time to collect your tax documents (e.g., financial statements, income/expense records, payroll information, inventory information, etc.).
Instead of waiting until the last minute to frantically hunt and gather your documents and reports (which, as we already discussed, should be organized and easy to locate), you’ll already have everything assembled and filed so that you can calmly hand everything over to your accountant. Procrastination is your nemesis, and it’s up to you to defeat it.
Knowing and understanding your tax responsibilities is critical. Do you sell over state lines? If so, are you paying the right sales tax? When are you required to pay taxes? Annually? Quarterly?
These and other pertinent tax questions can be answered by your tax professional, but it’s on you to make sure your responsibilities are understood as well as met.
Just as you need to understand your tax responsibilities so must you keep on top of tax code changes. These changes happen every year, but how many of them and what they are vary greatly. To keep on top of evolving tax regulations, check out the IRS website, ask local tax agencies, and (you guessed it) turn to your trusted tax professional.
If steps one through five resonate with you, then we think step six will be a home run: find and utilize the right technology.
Technology is designed to help you replace your manual tasks with automation, thereby reducing errors, saving time, and enhancing efficiency and productivity. However, you want and need a business solution that not only assists you in facilitating your unique product business needs, but also one that delivers superlative financial reporting. For many product businesses, that technology is Cin7
Cin7 is inventory management software (IMS) that unifies your inventory, warehouse, and sales needs into one real-time system and assists you in getting your products to your customers quickly and efficiently. Additionally, Cin7’s comprehensive financial reporting tools ensure that you’re able to monitor your financial health across all channels while working hand in hand with integrated accounting software solutions QuickBooks Online (QBO) or Xero.
Inventory, orders, and financial data automatically sync for up-to-the-minute information that you can then use to compile and complete your tax filings accurately, on time, and with minimal stress.
So, what are the main takeaways regarding surviving—and maybe even enjoying—the tax season?
First and foremost, seek professional advice. When it comes to managing your tax burden, these tax professionals are well-trained individuals or companies that do the heavy lifting for you. And, truthfully, you can’t afford to not take advantage of their expertise.
You should also educate yourself on the basics of your tax responsibilities (with the help of your tax professional), keep your records organized, eradicate procrastination, and pay attention to tax code changes.
Finally, you’ll want to invest in technology which can help you accomplish your inventory goals and make tax season something to look forward to (at least not dread)—technology like Cin7.
“After looking at our many options, we picked Cin7,” says customer and former accountant Lisa Shelley, founder of High Street Shoppe. “It was a robust platform that allowed us to manage our inventory in multiple locations, transfer information easily, simplify adjustments, and seamlessly work with QBO, Amazon, and ShipStation via Cin7’s APIs.”
Take the anxiety out of tax season. Implement Cin7 as your comprehensive IMS with the financial integrations and reports you need to run your business and pay your taxes successfully. Don’t delay—request a free demo today.