When you’re a business owner, there is nothing like the potentially lucrative sales that come with the holiday season. But once the new year is upon us, there is an undeniable sense of doom that overtakes many small business owners: The dread that comes with tax preparation. The good news is that the point of sale system that you are already using can likely be an invaluable ally as you prepare for your next communication with Uncle Sam and the IRS.
A deeper dive into your POS system.
You may think that you already know how to use a POS system, and in many respects you probably do. With its intelligent software, card readers, receipt printer, and barcode scanner, your POS solution makes accepting customer payments both fast and secure. Virtually automatically, today’s POS solutions can communicate all of the buyer’s card details to the other players in the process, screen for fraud, and let you know whether the payment has been accepted or declined.
If that were all your POS solution did, it would still be an exceptionally helpful tool. However, that’s just the beginning of its talents, and there is no better part of the year than tax time to show them off.
Make data entry precise.
With just one slip of the finger, you can make a mistake that could potentially flag your business for an IRS audit. With a smart POS system in place, you can reduce the chances of human error since it can integrate seamlessly with the accounting software that you’re already using. You can then add data and create reports on important business figures such as employee hours and tips, profits and losses, and much more.
File a Schedule C deduction.
With the help of your POS system, you can accurately bring up vital figures such as the cost of goods sold (CoGS). This number represents what you pay to acquire every piece of merchandise you sell. You can then use this figure when applying for a Schedule C deduction, which could save you money when filing.
Stop relying on paper receipts.
When your POS system is fully up and running, you can drastically reduce your reliance on paper receipts. This is because your system automatically tracks every sale you process. We’re betting that you won’t be disappointed to learn that the days of frantically scrambling through piles of hard-copy sales records may be over for good. Best of all, the numbers that you eventually submit to the IRS are much more likely to be complete and accurate, reducing the chances that you will undergo further stressful, time-consuming federal scrutiny.
Full inventory transparency.
Your POS system should have its electronic eye on every piece of merchandise you sell, at all points of the journey, from delivery into your warehouse until it leaves in your customer’s hands or digital shopping cart. Being able to precisely track these processes means spot-on financial figures when you file. Best of all, you can access the information in just a few clicks.
Gain control of systems access.
During tax time, you and your staff are compiling multiple pieces of information from different sources. Contemporary POS systems enable you to limit access to sensitive information only to those who need it. Furthermore, you can monitor who looked at what and when, thereby bolstering your digital security perimeter and reducing the likelihood of a costly and reputation-damaging data breach.
Submit exact employee information.
Communicating your company’s financial story during tax time involves more than just revealing profits and losses. You also need to let the government know what you have spent on your employees, including what you paid for their regular hours, overtime hours, and health benefits. With smart POS systems’ built-in employee management tools, supplying this information is a breeze.
For as long as you own your business, filing taxes is inevitable. However, your POS system can make doing so a lot easier, faster, and less stressful. If you’re not already taking full advantage of everything it can do for you, talk to your payment services provider to see how you can use your POS system to maximize your efficiency!
