Preparing for tax time as a business owner can be as stress-provoking as it is inevitable. Although there is nothing you can do to totally avoid the ordeal, using the right point of sale terminal and harnessing the payments software that accompanies it can prove to be a huge time-saver. Once you choose the right POS system, your next visit with Uncle Sam will be a much more relaxing one.
Add precision to your data entry.
All too many tax audits are caused by human error. One simple transposition of numbers can lead to incorrect calculations destined to cost money, time, and stress. That’s why you should do everything you can to minimize your chances of making these types of mistakes.
Harnessing the power of your POS solution enables you to integrate seamlessly with accounting software such as Quickbooks. As a result, you can extract tax data, employee tips and hours, and other information from your sales reports error-free.
Accurately file for deductions.
As a consumer, you may already be aware that you can reduce what you pay to the government in taxes by filing for all of the deductions you are entitled to. The same is true when it comes to your business.
The reporting capabilities of your POS solution should allow you to easily calculate important metrics, including the vital cost of goods sold (CoGS). This term refers to what you pay to acquire each item you sell. Once you have pulled this figure from your POS reporting feature, you can accurately file a Schedule C deduction.
Generate helpful reports.
Gone are the days when you needed to sort through drawer upon drawer of receipts or pore over confusing spreadsheets when preparing to file your IRS forms. In just a few clicks, you can now ask your POS system to generate clear, actionable documents that streamline your financial preparations.
This is because today’s POS systems are designed to keep constant track of all manner of data from each product that is bought and sold. The result is a clear picture of your total income and cash flow. Best of all, you can even get drilled-down details such as how much sales tax and other non-income fees you have paid. In short, your software can take much of that dangerous guesswork out of getting ready for IRS filings.
Bring about optimal business transparency.
In addition to your POS solution’s reporting tools, you should have access to powerful inventory management capabilities that will also come in handy for financial reporting. This is because your system likely specializes in tracking the progress of each item you stock from the moment it arrives in your warehouse until it leaves in the hands or the electronic shopping cart of your customers.
Contrast this seamless tracking with what you may have done in the past. Manual inventory counts and cabinets bursting with sales receipts can bring about inefficiency, errors, and stress—not to mention filing inconsistencies that ultimately provoke unwanted scrutiny from the folks in Washington.
Facilitate omnichannel support.
It is challenging enough to keep your records straight if you only have one physical location. But what if you have several brick-and-mortar sites, as well as a busy ecommerce website? Giving consumers multiple ways and places to buy what they want definitely fulfills a demand, but it can also set the stage for IRS filing mistakes if you’re not careful.
That’s where using a point of sale terminal to its fullest can truly be beneficial. The right suite of payments hardware and software allows for real-time synchronization among all your channels, which helps keep disparities to a minimum.
Make security concerns a top priority.
By definition, tax time requires that you subject your books and sensitive information to greater scrutiny. In many cases, this is done by granting increased access and permissions to your sensitive files to both internal staff and third-party vendors.
A good POS system will put control over access into your hands. When only those people with a direct stake can read or transmit certain details, the likelihood that you will be the next victim of a data breach is significantly reduced.
Organize employee information.
When you send tax information to the IRS, you need to know more than just how much capital you have earned and spent on products and services. Think about it: Your workers are both your greatest asset and one of your most significant expenses. Failure to include them in the equation is not an option.
Once again, your POS solution can be a silent partner who is right there at your beck and call when it comes to recording and reporting about staff details. The software it contains is likely designed to capture each person’s regular and overtime hours, as well as what you pay for each person’s health and other benefits. As you generate reports on your POS system in preparation for filing, be sure to consider your workers.
Get help when you need it.
When you choose the right POS system for your business, stellar customer service should be one of its main hallmarks. Having ready access to assistance from message boards, user forums, and, most importantly, knowledgeable human staff will prove to be invaluable not only if you have training or equipment-related issues but also when tax time rolls around.
The truth is that this time of year is probably one of the most stressful on the calendar. You want to do all you can to ensure that the information you provide to the state and federal government is complete and accurate. How can you possibly do so if you are unsure how to harness the power of your POS solution?
That’s where top-tier support can be invaluable. With help from experts who know every aspect of your payments hardware and software, and are acquainted with your unique business needs, you can rest assured that the details you submit will be complete and on point.
If it were possible, you would probably make IRS tax filing disappear with one wave of a magic wand. Until that day comes, however, it is crucial to leverage every tool at your disposal to enhance the ease and precision of the process. Never underestimate how helpful your POS solution can be in streamlining your finances during tax time!
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