With the possible exception of some CPAs or IRS employees, there aren’t a lot of people who enjoy tax season. And if you own or run a business, it’s very likely that you really hate tax season. Given the complex nature of taxes in business, this isn’t surprising. As just a partial list, many companies have to deal with business income taxes; sales taxes; payroll taxes, including matching FICA contributions; self-employment taxes; unemployment taxes; and other applicable state and/or local taxes. Keeping track of and paying all of these taxes is enough to leave anybody’s head spinning, even with the help of their accountant. One way to simplify your business’ taxes and help mitigate some of the stress involved with tracking and paying those taxes is to utilize a POS System.
Tracking the Right Information
Unfortunately, many companies use POS systems as little more than an expensive, glorified cash register. In these instances, the system is almost exclusively used to ring up or cash out orders and collect sales tax when applicable. However, these systems can do so much more. When properly configured and used, a POS system can track many different factors that affect your taxes. Some of these factors include hours worked, tips collected, inventory purchased, sales tax collected, accounts received and more. This allows you to have all the information you need right at your fingertips. On a side note, POS systems are designed to record your sales and other information for your business and tax purposes. Sadly, some companies choose to use illegal software, commonly called zappers, to falsify or suppress these records in a misguided attempt to evade paying some of their taxes. These types of programs should be avoided at all costs.
Integrating Accounting Software
Tracking information is great, but having the right information will only get you so far. You also need to be able to use that information. Integrating accounting software into your POS system allows you to access and use the information to your greatest advantage. These integrated systems can not only track the information, but also collate it into reports that can be used to make preparing and paying your taxes simpler and easier for both you and your accountant.
As you prepare for this and future tax seasons, make sure you have all of the information you need. That means don’t cut corners on your POS system. Take advantage of all the features you need for taxes that apply to your business.