Ease business tax uncertainty with accounting technology
February 01, 2013
The fiscal cliff situation that took hold of the nation at the end of 2012 had consumers and business alike concerned about the coming year and how the potential outcome would impact their finances. Once negotiations were finished and a deal was finally reached, there was some clarification as to what breaks, increases and other elements would be affecting companies and individuals. However, there still remains some uncertainty, as President Obama and Congress will be debating the debt ceiling and spending cuts over the next few months. For American businesses, this has resulted in more concerns over how these new negotiations will play a role in terms of economic recovery, as many owners believe their companies' finances will be impacted. To help ease worries and deal with any upcoming changes to tax codes and capital, firms can use accounting software to handle their financial processes. In addition, this technology ensure that businesses are following all accounting compliance regulations.
Continued economic recovery big concern for businesses
Although the nation's economy has been steadily improving over the past year, there are still several components that have yet to be worked out between lawmakers which could affect businesses in 2013. A recent study by KPMG revealed 33 percent of company owners believe that if there were more tax certainty provided, this would help to further spur economic growth.
Business tax reform is a concern for leaders, as 42 percent of respondents stated they think more comprehensive tax reform will not be put into place until after 2015. Twenty percent expect additional tax reform to happen next year.
"The business community is telling us that a stronger economic recovery is clearly linked to having a better picture of how companies and individuals will be taxed," said Hank Gutman, principal and director of KPMG's Tax Governance Institute. "They also acknowledge that prospects for a quick resolution of tax reform - and the business tax issue in particular - is far from clear over the short term."
Preparing for this year's tax season
Despite this uncertainty, companies still must prepare for tax season. Business 2 Community writes that businesses need to focus on keeping all of their data organized and in order so it is easier to find and access if needed. In addition, this can help if firms are audited by the IRS, and can result in more streamlined processes.
Accounting software gives companies the ability to keep track of all finances, store information for compliance purposes and make changes that occur from new tax legislation.