5 Ways to Prepare for a Tax Season; What Hosted QuickBooks Can Do For You

Tax seasons are critical time frames where businesses and individuals prepare their income taxes. 

It refers to the documentation and reports of transactions of the previous year to aid the preparation of taxes, timely filing of tax, and proper decision making. The accurate preparation of tax reports assists businesses to increase savings, improve business operations and understand records better. Tax preparation during tax seasons poses certain challenges for tax preparers in areas of decision making and documentation. Professionals also encounter limitations that hinder the timely completion and accuracy of the tax reports.

As a result, there are certain laid-out guidelines that tax preparers should follow to streamline the processes in the tax season.

This results in several ways to prepare for income tax seasons. Tax preparers could consider modern accounting software like QuickBooks. QuickBooks helps businesses gauge their financial status and handle bill payment issues such as payroll functions, tax preparation, report generation, expense management, sales, and invoice tracking. This accounting tool is most suitable for small and medium businesses and aids the proper location of business information for easy retrieval.

Although the traditional QuickBooks system poses some challenges/limitations in exercising the maximum potential in tax preparation, the Hosted QuickBooks offers a better option while documenting taxes. Hosted QuickBooks is an internet-hosted desktop version of QuickBooks that grants access to users from any location through a web browser.

Hosted QuickBooks possesses features of the QB  desktop and the cloud platform;

​Its features are;

• Data loss backup mode

• Data security

• Multiple user access

• Ease in file sharing among multiple users

• Easy Integration with multiple add-ons

• Improved online data collaboration

• Support remote working mode

How hosted QuickBooks helps in tax preparation during tax season

Data Security

Tax preparation requires the collation of data (transaction history)  and uninterrupted access to data by certified personnel. Hosted QuickBooks features a robust security system that prevents regular security breaches like fraud, theft, and data breaches. The providers cross-check the network using security authentication systems such as end-to-end encryption and a multifactor system. These measures ensure that data is readily available for tax preparation.

Error-free Preparation

​Tax preparation requires data sharing. Shared files may contain errors that cause inefficiency in the preparation of income taxes. Also, collaboration from clients may be challenging especially when retrieving relevant data during the tax season. To resolve this, multiple users are provided with a collaborative cloud platform that grants access to tax files. When changes are made, users can view them as well as exchange files to streamline data flow in preparing the tax documentation.

Prevention against disruptive events

Hosted QuickBooks helps tax preparers prevent occurrences that lead to the losses or corruption of files. If any accident occurs, the software is programmed to recover data and duplicates the tax data into several locations. The remote servers of the provider also help to prevent data loss by storing data in its servers.

Timely response

Hosted QuickBooks provides flexibility and unlimited access to data records from any location. This flexibility feature helps to service business clients better and retrieve information faster from any location. Preparers can use hosted QuickBooks to improve availability to clients and improves access to tax operations at any time and location.

Operational Downtime

QuickBooks cloud hosting helps to save time spent on operations during the tax season. Time-saving also helps to maximize billable hours

Complete tax solution

This cloud-based accounting software offers additional functions such as task organization, time tracking, and customer management that can be managed from one platform. The accounting software also supports integration with multiple apps and has multiple features needed for documentation on income taxes during the tax season.

​Conclusion

Preparing income taxes can be challenging and full of limitations especially regarding data accuracy, retrieval, data efficiency and corruption, timeliness, and security. Hosted QuickBooks helps individuals and businesses determine the best practices to gather tax documentation. It helps to improve data accuracy, protection, and flexible access from any location and time. With this improved efficiency, users can improve decision-making, save money, and operate more comfortably. This is as opposed to the traditional accounting software that limits user access and limits the exchange of files.