Tax season is upon us. Are you ready?
According to an article by CPA Practice Advisor, 47% of Americans feel anxious when they receive any correspondence from the IRS, and 29% fear they will be audited despite the majority of taxpayers (65%) stating they are confident their returns are free of errors. While many people dread this time of year, it doesn’t have to be a stressful process if you’re prepared.
Running a property management business comes with lots of complexities, which can make filing even more cumbersome. Outdated processes or paper records can lead to human errors and cost your business in the long run. When all of your data and documentation is quickly accessible, organized, and accurate, tax season becomes much easier.
Using the right technology can help reduce the amount of work your team has to do to prepare, and potentially reduce your liability in the event of an audit. Here are some ways you can leverage technology to make this year’s tax season easier than ever:
- Consolidate All of Your Data in One Place: Having everything in one system allows you to access accurate data fast and efficiently, so you don’t have to spend time hunting down paperwork and manually re-checking information. From important tax documents to vendor information, robust software can automatically store and update all of your files year-round, so when tax season arrives you have everything at your fingertips.
- Use Analytics to Spot Anomalies in Advance: In addition to storing all of your data in one place, the right property management software can make it easier for you to detect inconsistencies — like an incorrect zip code or an extra digit in a social security number — which could result in an unexpected audit or penalty fee. With customized reporting and analytics, you can stay ahead of the curve and ensure your data is clean and complete.
- Keep Your 1099s in Line: Most property managers must issue 1099s to their owners, vendors, and the IRS by January 31st every year. This process can easily fall through the cracks if you’re not careful. Luckily, innovative software can be a huge time-saver in that it can enable you to send 1099s to vendors and owners electronically instead of by mail.
- Free Up Your Team to Focus on Higher-Level Initiatives: Tax season can be a disruptive task and take time away from other important business duties. Tracking down lost W2’s and manually entering data can be tedious and lead to mistakes. With a great software system in place, your team will have more time to focus on important tasks, like staying up-to-date on the latest tax laws and researching potential deductions that could save your business money.
Set yourself up for success this tax season by making the most of technology solutions. With a purpose-built property management software you can ensure all of your data and documents are easy to find, accurate, and ready for filing. Here’s to getting a great return!