Tax tip #4: The benefits of bank integration
January 13, 2016

It's time to consider whether your current tax setup is working for you and your organization. You can save time and reduce errors with accounting software that offers bank integration.

Bank integration automatically imports financial transactions by linking your bank account to your accounting software. Anytime you make a transaction with a credit card, debit card or check, both your bank account and your financial records will update instantly. You'll no longer have to track down every work-related travel expense and business lunch receipt. Scrolling through bank data is time-consuming and headache-inducing, and some banks only allow you to see a certain number of transactions. Instead, you can purchase office supplies and collect payments with ease, knowing the information you'll need come tax season is already at your hands.

Here are some of the ways bank feeds improve the jobs of business owners and their accountants and bookkeepers:

Higher accuracy
Bank feeds offer improved accuracy by reducing the number of errors resulting from inputting bank statements by hand. Gone are the days of unintelligible handwriting and mistaking a three for an eight - which, depending on the digit, could be catastrophic. Instead, the information that appears in your books and the information your bank receives are one in the same.

Better speed
Manually entering information - even into a computer - takes time and a careful eye. Depending on the number of transactions involved, manual data entry could take days or weeks to complete. Automatic bank integration speeds the process up, freeing businesses and accounting professionals to spend time on more complicated matters.

Data in real time
Inputting your bank records is best done over time, not in a last-minute rush to meet a tax deadline. Even scheduling a certain portion of your workday to inputting receipts can lead to missed or forgotten transactions. Because a bank feed transfers your account information the instant you make or receive a payment, there's no need to delegate a special time to typing up your receipts. Nothing gets missed, and no one ends up rushed. The right accounting software will also learn to recognize related transactions and sort them into their proper accounts. Accountants and bookkeepers will simply have to review the information for errors, which is far less time-consuming than sorting every bank statement.

Software providing bank integration offers advantages like less time entering data, more accuracy and less clutter in the form of receipts. Let Sage help you and your client's tax season go smoothly.

Nexus: G-WEBCD2