Few acronyms elicit more fear in the hearts of business owners than โIRS.โ Although you may never go into tax season with the calmness of a mystic yogi, you can drastically lower the tension by taking advantage of the tools that reside in your point of sale system. Take some time to learn how your POS solution can help you to make friends with Uncle Sam.
1. Increase accuracy.
Most audits are caused by accidents or carelessness, much of which stems from the imprecise entry of data. And itโs no wonder: Itโs a challenge to perfectly input long strings of numbers without a mistake.
These days, your POS can integrate seamlessly with all major accounting software packages, making it possible to extract and export sales and employee data with no chance of transposition or other errors.
2. File for the deductions you deserve.
Did you know that businesses can file for deductions, too? Your POS can generate reports that enable you to accurately calculate what you pay for each of the items you sell (CoGS). Once you have that number in hand, you can file for a Schedule C deduction that can save you money.
3. Create actionable reports.
In the past, a large part of the angst associated with tax time had to do with the gathering of thousands of scattered receipts and other records. This had to be done before any IRS forms could be completed, and the potential for oversights and other errors was massive.
Now that you have your POS at your side, it keeps track of every product purchase and integrates with your financial software package. Instead of that desperate scramble for documents, your system stores everything securely. When called upon, it can create reports in just a few clicks that show total income, cash flow, sales tax, and fees paid.
4. Enhance filing precision for multi-channel companies.
Filing taxes is stressful enough if you have just one store or website. But what if you sell from multiple physical and digital locations? Fortunately, your POS is able to synchronize all channels, giving you instantaneous, real-time data that leads to accurate report generation and tax filing.
5. Promote maximum security.
Like it or not, tax time means that you need to expose your books to added scrutiny, often from both internal and third-party entities. With the help of your POS, you can grant access to this sensitive information only to those who need it. This greatly reduces your vulnerability to a data breach.
6. Provide necessary employee information.
In addition to income and expenditures, the government also needs to know about the resources you have allocated toward your staff. This includes not only what you have paid them but also the cost of their benefits and their regular and overtime hours. The software in your POS can keep track of and generate reports for all of these vital details.
Will your POS ever transform your relationship with the IRS into a blissful one? Will the day ever come when you actually look forward to filing taxes? Probably not. But your POS definitely does have the tools and integration that will make this inevitable process easier and more accurate.
