Practical Tips for Accounting Firms to Ensure Hassle-free Filing During Tax Season
“In today’s world, nothing is certain but death & taxes.” – Benjamin Franklin
The tax season is not just busy; it’s overwhelming. Especially for accounting firms who have to crunch and report numbers day in and day out.
Luckily, you can take measures to make the upcoming tax season more manageable and hassle-free. Here are some expert-recommended tips that can help you take care of the health of your accounting practice.
1. Embrace Standardization
Standardization is the new policy. The more standardized your processes, the more consistent your work will be. Collate, analyse, and report financial information in the same way across all verticals and make your filing process more consistent.
Standardization not only saves money, but it’ll save clients money as well.
2. Know Your Technology
In today’s technology-driven world, embracing technology is no longer an option. It’s a necessity.
And this applies to accounting practices, too. Today there are a plethora of software and tools that can help your practice stay on top with all the changes in tax rules and regulations as well as other financial matters.
However, first things first: you need to discover what technology is available for use by accountants today so that you know how it works, and which ones you can leverage in the accounting firm.
3. Do Your Due Diligence to Avoid Penalties
South African Revenue Service (SARS), the tax-collecting agency, updates its rules and requirements frequently. And if your accounting experts are not up-to-date with the latest filing requirements, your clients may face penalties, fines, and even possible investigations.
So make sure your finance experts take every necessary step to protect the client’s interest and follow the filing requirements and regulations set forth by the SARS.
4. Don’t Worry About iXBRL, Outsource
Post 2018, the CIPC requires every eligible firm in South Africa to submit their AFS in the iXBRL format. So after filing taxes and preparing financial statements, the reports need to be converted into iXBRL, which can be complicated if you have no prior experience with the reporting standard.
Don’t fret; simply outsource. There are several outsourcing service providers that can take care of iXBRL conversion and ensure a hassle-free filing season.
Keep Your House in Order
Tax and annual financial statement preparation for CPA and tax firms are very complicated. From managing staff to ensuring that all sources are available during rush season is a tedious task. Sometimes accounting firms get too flustered and are unable to reach their target. However, by following these tips mentioned above, you can ensure a hassle-free tax season in 2021.
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