Advantages of banking integration with your tax software
One of the challenges of many consultancies and firms is to be able to carry out accounting processes with the highest possible degree of automation. When handling numerous clients, it is very complex to perform calculations manually without making errors. Typically, clients send bank statements to advisors and advisors have to ensure consistency between banking details, billing and accounting.
This can be achieved more effectively when your advice opts for integration with tax software. You will not need to enter the data manually in an accounting program, or use Excel, since the calculation for bank reconciliation could be done automatically with the data sent to you by your clients.
What is banking integration?
Banking integration consists of checking the consistency of the income and expenses reflected in the accounting with the collections and payments reflected in the company's bank accounts, using software that allows anticipating deviations in the accounting notes, as well as discrepancies between what was declared and the bank details.
When you wonder what banking integration is , it may be because until now in your consulting you have always managed it manually. Thus, the calculation of the data may have given rise to possible human errors, which may have consequences. For example, products or services that have an invoice, but the customer has not paid them, or lack of forecast regarding payment dates.
Benefits of banking integration
It is possible that until now your consultancy or office was doing the calculations manually for the bank reconciliation. If there is no integration between your accounting software and bank data, you will normally have to perform the calculation manually and it will depend on when clients send you their bank statements.
This can allow you to carry out a manual and basic management service, but it is not viable when many clients are handled at the same time. Furthermore, if you want to carry out financial management actions, such as forecasting collections or claiming non-payments, manual processes can be enormously complex and it is always better to work with tools that provide us with information in real time.
Agility in tax matters
This is one of the clear benefits of banking integration. Your advisors will not have to verify the data manually. When a client sends you bank statements for the month or quarter in Excel, there may be hundreds or thousands of operations. There may be duplicate transactions, payments that have not been made, or charges that have not been received.
Then you will have to calculate the tax models, VAT and Corporate Tax, as well as the Annual Accounts for the Commercial Registry. You need to detect errors or delays in advance. If there is no precise correspondence between the accounting and what was declared, your accounting will have errors.
Risk mitigation
The integration between the tax software and the bank by software development services not only allows you to create tax models without errors. It is also of great help for proper risk management. Invoices have an expiration date and must be met to avoid late charges. Companies may be losing liquidity every week due to non-payments, and then this has consequences. With an expense control program that facilitates banking integration, this could be resolved in your office or consultancy. There are also other types of risks, such as an inspection by the Tax Agency and your data having serious discrepancies.
Data management and analysis with AI
Artificial Intelligence has been playing an increasingly important role in the automation of processes in companies. Companies that handle a large amount of data, such as consultancies, need solutions that incorporate AI to facilitate data analysis, which includes detecting errors or making predictions that provide knowledge to advisors about the state of the accounts of that company.
Reduction of time in checking operations
It can take a long time to check all of a company's bank statements. Imagine that you have to do several at the same time, manually, and with reduced deadlines. It is much easier to check transactions automatically with a financial management program that allows you to perform bank reconciliation.
Real-time information
On the other hand, we must not forget the advantages that being able to access data in real time means for any consultancy or firm. In this way, loss of time, errors and delays that occur as a result of not having the data at the time, or having to notify clients so that they send us the necessary documents to prepare the accounting and keep the accounts, are avoided.
Do I have to use tax software for banking integration?
By integrating tax software and banks , your consultancy can carry out its processes more efficiently and productively. The result is that fewer errors will occur, your clients will be more satisfied and your consultancy will not run the risk of losing clients or having negative consequences for your client as a result of a tax inspection.
The good thing about having software for banking integration is that you can combine this type of tool with an ERP system , and thus be able to manage all the processes of your company, from controlling the evolution of sales to customer management. .
Discover the advantages that it would mean for your consultancy or firm to start implementing reliable, secure, flexible and customizable software solutions, from renowned software development company for the management software solutions, with which you can work more optimally and save time.