Have you been searching for a solution that will help you save some money on tax?
You need to understand your needs and accordingly finalize a solution. After this, your next step should be to ensure that the software or solution you choose can meet your requirements and expectations.
The following list contains some features that you must check in tax planning software.
A Comprehensive Library
Statista says the global enterprise resource planning (ERP) software market will grow to around $97 billion by 2024.
The software needs to have a comprehensive library to provide accurate results. At times, people come across scenarios where specific data is missing, causing them to doubt the software’s credibility.
For instance, if you know that a particular investment will help reduce your tax liability. After using the solution, you come to know that this was not taken into consideration by the software, then obviously it is going to be a bad experience for you.
Therefore, choose a solution that allows you to enter any transactions and then calculate the tax liability for that particular year.
Most probably, every client’s tax situation is different from someone else’s. Therefore, you need to use filters to provide accurate results. For instance, if it is a single or married person, the tax calculation will vary for both these scenarios.
Therefore, you must make sure that the software provides this option. Most professional products come with multiple filters to choose the best solution according to their needs and requirements.
If you are using a non-professional product, you might be using an old software version. It becomes tough to rely on any calculations in such a situation, so you must go for automatic updates.
The facility to update automatically will allow you to have the latest working versions to ensure that your tax planning results are accurate and credible.
The good part about the system is that practically all professional software products offer this facility.
The feature comes in handy, especially when filing returns and explaining the reasons behind certain transactions. For example, if someone has recently sold an investment and then subsequently bought a house, you need to track the reason behind the sale.
Once you have the audit trail feature, you can use it to track whenever a particular transaction has been executed and which is the reason for that transaction.
In addition to the audit trail feature, most professional tax planning software products also provide a comprehensive search facility. Using this option, you can track any transactions that have been made during the year.
Moreover, it is not just investments or capital gains that can be searched; you can use this for accurate record-keeping of your expenses.
The feature is handy for people who are not familiar with the tax laws. Using this report generation option, you can generate an accurate tax break up to get a clear idea of what your tax liability is going to be in the current year.
It will also help you see if you are saving enough time to make your investments in various tax-saving avenues.
Using this report, you can also track the expenses that have been incurred during the year and which part of them can be deducted when filing returns.