If you think about all the things that help you make money and cut costs, tax management software probably isn’t the first to come to mind. But while taxes themselves aren’t profitable, there are still plenty of ways to save time and money while going through the process.
Finding tax management solutions is key to reducing resources spent on this financially draining practice. Automation means you can spend less on staff who’d have to spend hours doing these tasks manually. In fact, E*Trade CIO Lance Braunstein remarked on his own experience with tax reporting automation. He said, “There are certain things humans do well and certain things they don’t…The repetitive, rote task typically is better suited for a computer.” You can use those saved hours and invest them in more analytical accounting processes, which unlike taxes, will build your company and increase profits.
To help you quickly find a capable solution, we’ve compiled a list of accounting systems with the best tax management features according to our Leaderboard. Our research team has identified tax management as a key requirement buyers should consider when looking for an accounting solution. Our inbuilt algorithm then gives each product a numerical score and ranks them accordingly. Find a solution that not only optimizes your processes, but that’s also the perfect fit for your business.
Acumatica’s automation and centralization of features are what make this system so valuable. Acumatica automates the reporting and tax calculation processes, saving your staff time and effort. And with all your tools in one place, users won’t have to scour the system to work on consecutive tasks. Acumatica brings a level of efficiency to your company that won’t go unnoticed, especially during month-end closing when that extra time is needed the most.
Acumatica specifically supports sales, withholding, usage, and VAT and reverse VAT taxes. These can be managed from either a local perspective or internationally, as this vendor supports multiple currencies and languages.
Its audit trail functionality is very good as well. This system manages all your tax documents and related information. Recorded transactions are the only place where adjustments can be made, which ensures integrity for all your documents.
Additionally, this vendor provides excellent mobile capabilities, allowing users to access the system on any device. This flexibility extends to its deployment methods, also. You can deploy it on-premise or in a private or public cloud. And while Acumatica is designed with complex financial functions in mind, it’s also simple enough for smaller businesses to use. The program was acquired by the investment firm that owns IFS AB in June 2019. With this sale, the vendors remain separate but benefit from shared capabilities and resources.
Oracle Financials makes use of Hyperion Tax Provision for tax management. It integrates well with existing financial processes and data for smooth and streamlined service. Integrating data from the rest of your company also increases your financial transparency, an attribute more and more businesses are seeking out.
This solution calculates your tax provision (we know, it’s shocking) and records it in a tax journal entry. Then, you’re able to get a thorough report and analysis on your company’s tax provision as this system easily integrates with Oracle’s reporting modules. Furthermore, users can employ the return-to-accrual process to boost compliance using tax return data.
And like Acumatica, Oracle supports automation of tax calculation. This system helps with partially recoverable and non-recoverable VATs, sales and use tax, withholding tax and various other location-specific taxes.
Lastly, this system is available as an on-premise solution, within a private cloud or hosted. This gives you some flexibility when it comes to initial set-up fees and how in-depth you’d like your system to be.
Epicor is yet another vendor that offers automation of the tedious but necessary processes that come with managing your taxes. Trying to keep up with all the different regulations for different products in different jurisdictions is a huge misspend of time and energy, especially as your business grows.
Epicor’s Tax Connect feature continuously updates data on regulations and tax holidays. The system then calculates your taxes based on this new information, so you can rest assured your accounting will be up-to-date. It easily integrates with any larger ERP system you may have, giving you one less thing to worry about.
It’s available both in the cloud and on-premise and is suitable for any sized company.
This solution is particularly great for small and mid-sized businesses. It’s available in the cloud, so your company can start off with the features they need and add more as it grows. And while its capabilities are strong, the tool remains simple to use. You’ll never have to worry about owning an overly complex system with more options than you have use for.
This is especially great for buyers looking for a product suited to their SMB, but aren’t interested in QuickBooks. This tool allows you to do your accounting for sales tax, VAT and withholding tax. It also has many of the automation capabilities listed in the above descriptions.
SAP’s software provides you with a multitude of deployment options. Whether you decide that you need a cloud-based product, an on-premise solution or even a hybrid environment, SAP has you covered.
SAP automates a number of processes for the user, optimizing and making your tax functions more efficient. It provides a dashboard for centralized information and increased control of all your accounting affairs. With this vendor, you’re also able to send all the necessary documents to the proper legal entities to make sure your taxes are fully on time. The dashboard also allows users to supervise all compliance activities and make adjustments, as necessary, in one place.
Which One Is Right for You?
As you can see, excellent capabilities can be found in more than enough tax management systems. What you’ll need to think about now is everything else that comes along with them. Make sure whichever solution you choose is right for the size of your business and the style of deployment you’re looking for. And of course, there are all the other accounting functions you’ll have to consider, like payroll, invoicing and budgeting. Along with tax management, our research team has identified these (and other features) as key requirements.
Our Enterprise Accounting Leaderboard can give you a complete list of which products are best, what features they provide and how well they offer them. And of course, feel free to contact us directly at any time for more help during your tax practice management software selection journey.