Benefits of QuickBooks Online in the Tax Season

QuickBooks Online is a cloud-based accounting tool designed to reduce the time spent on managing business finances. You can create estimates and invoices quickly to track sales and cash flow. QuickBooks has several techniques to make tax season simpler. The article will focus on a few tips to make tax season easier so that you are in better shape in a year.

QuickBooks Online can help in the Tax season in the following ways.

There are several ways by which QuickBooks Online can be used to make tax filing simpler and easier for the business owners:

• Set up Accountant Firms or Users: QuickBooks Online Access to the bookkeeper or accountant provides him with extra tools to ensure books are accurate and up-to-date. Ready reports are easier to access when your tax team needs them.
• Utilize ‘requests’: Once you have set-up your tax preparer/bookkeeper as a user in the QuickBooks Online, now you can use a feature in QuickBooks Online Accountant called ‘Work.’ This feature is a tool that will allow your tax team to track tasks & projects. The user can create a ‘request’ utilizing the work tab by utilizing any documents or info related to it. Anything you will upload will exist in QuickBooks Online.
• Utilizing the Workers tab: Workers tab in QuickBooks Online is a new feature. The feature replaces ‘Employees Tab’ & allows small business track payments to the employees and the contract workers. You can now ‘invite’ a contractor to add their W9/1099 information directly from QuickBooks and prepare the ‘1099s’ next year with less effort.
• Helps in Report scheduling: QuickBooks Online provides another useful report that is called as ‘Ask my Bookkeeper report’ in which you can post transactions about which you are not 100% sure and put it in an expense account called ‘Ask my Bookkeeper or Miscellaneous Expense account.’ You can then create a report that reflects transactions posted to that account. This report can be shipped to your bookkeeper. The bookkeeper can reclassify the transactions so that there are no hassles in sorting data at the end of the year.
• The W-2’s: QuickBooks Online Payroll customers can view and print the W-2 forms for your employees. It is a helpful tool, as it will track your payroll taxes throughout the year to make the filing the taxes
• Create E-File: QuickBooks Online Payroll users can e-file their federal & state income taxes. Additionally, the user can also sign-up for e-pay that makes completing taxes easier and simpler.
• Sales Tax: There is a report available in QuickBooks called as ‘Sales Tax Liability’ that reflects all collected sales taxes throughout the year & it also shows the amount that you owe to the tax agencies. The things you need to worry about is filling and paying the ‘Sales tax return,’ as the rest is taken care off.
• Several Useful Reports Available: Reports are essential and required whether you do your taxes or you have an accountant. In any scenario, you will need certain accounting reports. QuickBooks Online provides some useful reports such as the Profit & Loss report, the Balance sheet, etc. that are needed for various analysis. You can also easily email, print or download these reports as ‘.xls.’ files.
• Advanced Inventory: For a small business owner it is essential to file taxes and value your inventory at the beginning & end of every tax QuickBooks Online offers an inventory feature (in QB Plus), and an Inventory Valuation Detail Report. The Inventory Valuation detail report reflects the company’s assets and helps in calculating your ‘COGs’ for the particular year.
• Helps in Bank Reconciliation: It is imminent to keep your books up-to-date even before you file taxes. This is made easy with QuickBooks Online with automatic transaction matching & duplicate transaction detection feature. It becomes easier to do Bank reconciliation too.
• The Audit Log feature: The Audit log feature in QuickBooks Online keeps you ready in case of ‘Audits.’ The Audit Log efficiently records and recounts what has happened in the company file. Hence no one can question the validity of the company’s
• The Accountant access: Another great feature of QuickBooks Online is that you can invite upto two accountants to see your data for free. In the reports feature there is an ‘Accountant Reports’ feature as well.

It is essential for every business to file the taxes on time. QuickBooks Online is a great help during the tax season, and the above-provided points are proof of that. It is a multi-tasking software that ensures to make tax filing easier and simplify the overall accounting and bookkeeping needs. Utilize the exceptional features of this software to live stress-free. For information on any of the above-given features talk to an expert at QuickBooks Support Phone Number 1-877-221-952O.