As governments around the world attempt to make their tax rules water-tight, there is a growing complexity that businesses have to manage while filing their taxes. Making mistakes while filing taxes could attract avoidable penal costs. Handling the increasing compliance requirements can be especially challenging for small and medium businesses (SMBs), who have limitations in terms of financial capital. They cannot recruit a large accounts team, and neither can they outsource all their tax filing requirements to chartered accountants. However, the use of hosted tax software, which combines the benefits of both, desktop and cloud-based software, for filing taxes could be very helpful for SMBs due to the following reasons:
- A hosted software offers the advantage of integrability with other enterprise software to increase productivity. Moreover, through appropriate integration, an SMB can significantly automate the data entry process when it comes to filling out various fields in the forms for tax filing. This will reduce manual effort and time required to file taxes, and also make the process considerably error-free.
- While large businesses can afford dedicated software to store their enterprise data, SMBs may not have that luxury. Maintaining physical records of tax filing records can later be detrimental, because referring to such physical files at a later date could be a time-consuming affair. However, the use of a hosted software will eliminate the need to maintain physical records, and the tax records could be made available to anyone working in any branch depending on the requirement. Also, the reduced space requirement in office could mean that SMBs can make do with smaller office spaces, leading to lower lease rentals.
- Following from the above point, a hosted tax software being cloud-based can enable employees operating out of different geographical locations to collaboratively work on tax filing round-the-clock. This is especially beneficial when it comes to handling complex work such as creating multiple invoices and tax reports or handling long-winded tax filing processes.
- SMBs can decide on various customized plans for their taxation software depending on their specific business needs. This can help them minimize their IT costs while maximizing utility of the software solution.
- A hosted tax software has impregnable security since it is the software providers who take care of all security-related issues for the SMBs. In contrast, a desktop version might require you to pay for additional security software – costs which are avoidable by using a hosted software.
- Updates to hosted software are provided automatically, so you do not have to worry about them.
Given the above points, it is easy to see why hosted tax software is a must-have for SMBs. At KDK Software, we provide a wide range of packages which can be customized to suit individual business requirements. If you are operating a SMB and are looking for a solution that can make life easy for your Taxation department, we would love to help you with our solutions. Not only have our products been preferred by over ___ SMBs until now.