What is Tax Compliance Software?

Introduction

Tax compliance software gives you accurate federal and local tax computations, and automates tax filing and reporting. Top vendors present different solutions to manage specific types of transactions and their linked taxes. Sales tax compliance programs compute and process relevant taxes to be charged across jurisdictions. Further, Value-Added Tax (VAT) applications monitor regulations and automate computations across intricate scenarios. Advanced tax compliance tools support custom tax management for global sales. Many vendors also deliver managed audit reporting and tax filing for businesses of all sizes.

Apart from the above features, tax compliance systems also help to handle other tax-related work like audit reporting, tax data analytics, returns processing with compliance with multiple jurisdictions, e-way bill tracking and processing, and exemption certificate management and search.

Some vendors focus on a particular market segment, while others provide products that can be used by companies of all sizes. Integrations are important for tax compliance software. For instance, sales tax compliance solutions can integrate with shopping carts and e-commerce systems. Other integrations include with supply chain, procurement, accounting and budgeting, and corporate ERP platforms.

Features of Tax Compliance Software

Assured 100% Accuracy

Leading tax compliance solutions guarantee 100% accuracy in tax calculation, filing, and reporting. If there is an error, many vendors offer to compensate your company for the IRS fines.

Maintain Full Control

You can comprehensively review all the tax filing details before submission to eliminate all inconsistencies and mistakes. Plus, you can file the returns utilizing the same platform to get rapid refunds.

Add-ons for Global Taxation

Leading applications provide many tax-specific or international taxation add-ons to help enterprises with global operations.

Accurate Jurisdiction Identification and Data Determinations

Tax compliance software provides accurate data determinations and pinpoints the jurisdiction based on your company location. This enables the program to meet hybrid rules that are applied to your enterprise. To clarify, advanced tools are designed to manage the over 100,000 taxation rules and each one of the 12,000 taxation jurisdictions.

Transparent Taxation

Tax compliance software comes with smart reporting features that make taxation less complicated and more transparent. It also allows you to summarize payments in one schedule.

Error-free Calculations

The system can apply the correct rate for every transaction without errors. It utilizes an inbuilt address verification and geolocation feature to make data accessible, visible, and accurate.

Benefits of Tax Compliance Software

Reduces Errors

Manual tax computation and filing is mistake-prone as you have to do everything by hand. Tax compliance software is the solution as it can automate many tasks to make calculations accurate and error-free.

Get Faster Refunds

New deductions and changes are included in tax rules almost every year. Tax software can help you keep up with these developments. Plus, it makes payment trouble-free and assists you to get quicker refunds. The solution also enables you to efficiently handle audit reports from managing due dates to checking errors.

Saves Time

Tax compliance software helps you to avoid spending long hours to check and recheck figures and perform complex calculations on the tax data. You can automate the paperwork and computation, and use the saved time for more vital tasks.

You will not Miss Tax Credits or Deductions

As mentioned earlier, it is hard work to keep with the regular tax law changes. Your company can waste precious money and time if they don’t know or miss out on tax deduction. Plus, you can also miss tax saving opportunities if you don’t perform tax deduction or claim your due credit. A quality tax compliance application helps you avoid all these errors and ensures your firm doesn’t miss any tax deductions or credits.