Money

Tax Automation: The Key to Saving Time and Money to Improve Growth

September 14, 2023

Jones

Bills, taxes

Tax automation is steadily revolutionising corporate finance.

Not only does this modern process save valuable time for an internal team, but the benefits can be far-reaching too. Piles of paperwork might be commonplace in traditional and outdated settings, but modern and tech-savvy leaders know that automation saves time and money.

Whether you’re ready to start your new growth phase or you’re collating ideas before the next tax year, tax automation is an important consideration.

What is Tax Automation?

Tax automation stands for digitised, and often automated, processes surrounding tax obligations. Employers are responsible for accurate and timely tax reporting, detailing any calculations relating to tax. These might include:

Changes to employee circumstances
VAT payments
Specific e-commerce taxes
Customs duties on imports and exports
Inventory management and reporting

Automated systems make life easier for large companies, but it’s not always easy to move onto digitised tax processes when operations have been on the traditional side for a long time. For SMEs in this position, it’s prudent to outsource tax automation solutions that ensure compliance and transparency across the board.

Growth And Expansion: Why Is Upscaling So Challenging For Businesses?

In many cases, expanding a business is even more difficult than starting out. Scaling a business successfully and to a specific timeframe means that the owners and senior leadership team must change their strategy.

Focus should be shifted away from product development and turned towards consumer-based trends and predictions for a stable and profitable future. These include delivering enhanced customer service, maintaining an excellent company culture, and learning about successful financial management throughout.

With a dynamic team and a robust plan, visions can turn into a new reality for a company. But without efficient and healthy relationships between internal teams and key stakeholders, progression can become slow and riddled with issues and delays.

How Can Tax Automation Help With Business Upscaling?

By incorporating tax automation technologies, businesses can be better prepared for expansion, profitability, and overall efficiency too. For companies on growth trajectories, tax automation software leaves companies better positioned to achieve the following goals:

Streamlined operations, leaving more time to focus on necessary tasks
Overall efficiency, allowing resources to be allocated elsewhere
Profitability, leaving budget available for innovation

Overview: Why Should I Replace My Tax Department?

When you’ve been working with an honest and reliable team of accountancy staff for several years, approaching redundancy might feel daunting or even disloyal. However, if you’re serious about your growth plans and your leadership team agree on plans, digitisation could be the missing piece to the puzzle.

Tax automation is the most effective way to leverage your resources when it comes to tax calculations and management.

It not only limits manual labour but reduces the potential for human error, allowing for enhanced centralisation and monitoring of your corporate financial affairs. In turn, your business will be better prepared and in a stronger position to react to regulatory changes.

The surprise factors that can damage your credit rating

Dominic Lill

Poor credit score? Here’s what you need to know

Dominic Lill