Swamped by mountains of invoices, expense forms, earning records and bank statements? It can only mean one thing: Tax season!
Tax preparers, bookkeepers, accounting staff and self-employed workers are busy collating and combing through all the necessary paperwork to compile their annual tax return. For many, this time of year is a real headache, especially when the process of filing taxes is slow, manual and labor-intensive.
On top of this, the world of tax is currently embarking on a digital revolution. When tax systems become fully digitized, many businesses will find that the old way of doing things have become obsolete.
Workflow automation software can transform tax preparation for your business, relieve your staff from the pain points associated with tax season, and help you prepare for the digital future. In this post, we’ll discuss:
- The pain points of tax returns
- How the digitization of tax is presenting new challenges
- How workflow automation software can help
The Process of Filing Taxes: The Pain Points
During tax season, there is often a growing sense of stress and frustration. Complex tax returns invariably involve lots of moving parts that need to be accounted for. There is a lot that can go wrong – if one record is omitted or one transaction misrepresented, then tax returns can quickly fail to add up. The consequences of failing to pay the correct corporate tax can be severe.
The main pain points of tax preparation are:
- Locating all the records required
- Locating client information
- Collating, managing and reporting increasingly complex data
- Checking (and double-checking) that everything adds up
- Staying in line with regulations
The complications of tax preparation differ country by country, but the list above provides a good summary of the problems all businesses have in common, regardless of geography.
The Digital Future of Tax
As the world becomes more digital, it’s not surprising that authorities around the world are moving to digital tax systems. The idea is to make the process of filing taxes easier and quicker for all parties involved.
However, the move has proved controversial, and many believe these new systems are making tax preparation more demanding and time-consuming. For instance, in the UK, the Making Tax Digital program was postponed by a year to give businesses more time to adapt, after the original proposal was met with fierce opposition. This was because the proposals would involve some people, in particular, the self-employed, needing to increase the number of tax returns they file from one-a-year to five-a-year.
The current arguments being posed against the digitization of tax, in general, are that it complicates the process and that businesses are simply not prepared for the changes. Because of the capabilities of emerging technology associated with digitization, such as Big Data and Artificial Intelligence (AI), many authorities around the world are using it as an opportunity to request more detailed reports on tax data.
Some countries are asking organizations to document real-time, transaction-level data. But it is only a matter of time before these practices will be taken up by other countries around the world.
Digitization is inevitable. All organizations need to embrace the change.
The more complex tax becomes, the harder it is to collate, manage and report. In many cases, current manual processes lack the sophistication to collect tax data at this level of detail. Old-fashioned, largely manual reporting systems will be unable to cope. This is a big concern because making mistakes can cost money and time, as well as adding to your employees’ frustration during an already stressful tax season.
Digitally Transform Your Business Processes
With the move to digital tax systems and ever-increasingly complex tax data requirements, automated tax reporting will soon become a must-have for all organizations.
The Nintex Workflow Platform provides the tools to create simple, point-and-click workflows that connect every person, department and system in your business. Its state-of-the-art, cloud-based capabilities can help you digitally transform your business by letting you connect the right content to the right people at the appropriate time. This includes all your forms, applications, content and systems of record.
By automating processes associated with tax reports, the Nintex Workflow Platform can significantly reduce the headache for staff. As well as this, it can help your business prepare for the digitization of tax. It helps:
- Reduce risk and human error
- Create forms that capture and validate all required data
- Improve data accuracy and visibility
- Prompt employee action at the right time
- Discover bottlenecks in your processes
- Create mobile apps that capture and validate all required data on the go
- Ensure regulatory compliance
- Keep a full audit trail of invoices and expenses
- Provide valuable insights into your finances, not only for tax purposes
One of the key benefits of this functionality is that it means there’s less of a need to chase people for information when compiling your business taxes. Instead, an automated workflow will do this for you, by automatically collecting data from your different systems with the need to ask individuals to look for it.
What’s more, Nintex can send reminders for people to provide the necessary data at the appropriate times at different stages of the process of filing taxes. Or if, for whatever reason, there’s a gap in the data required, a notification will be sent to the relevant person to take the necessary action well in time for tax deadlines. If salary information is out-of-date for instance, an email will automatically be sent to the finance team with a form to fill out.
There are so many manual and repetitive tasks in the tax filing process, which mean mistakes could be made and delays happen. Wouldn’t it be better to automate those processes?
Learn more about how Nintex Workflow helps streamline and automate your business processes to revolutionize the process of filing taxes. Ready to try automating proesses today? Get a free, 30-day trial here!