As businesses deal with tighter margins during the COVID-19 pandemic, cutting down on audit expenses could save valuable dollars. Tax and auditing issues not only interfere with cash flow, but they also reduce operating margins and interfere with your ability to attract top talent. An efficient audit process helps your company avoid costly fines, tax violations, or bookkeeping errors.
The good news is that tax agents help businesses implement a streamlined auditing process. They use their expertise to recommend better bookkeeping practices while leveraging data analytics to uncover valuable insights about your business.
1. Using data analytics to uncover valuable insights
Without proper planning, auditing can be a lengthy and expensive process. Many different accounting tasks require regular audits. From transactions recorded in ledger accounts to risk management for electronic data, streamlining audit tasks is a critical way of reducing operating costs.
Tax agents leverage data analytics to develop efficient workflows that simplify auditing functions. For example, they can establish auditing functions and algorithms that accomplish multiple tasks at once. Algorithms are capable of sifting through your business data to assess risk, check for accuracy of recorded entries, and evaluate your books for any potential tax issues. In this way, the auditing process becomes highly automated and less costly to implement.
2. Applying experience and expertise on industry trends
Tax agents are also able to streamline auditing by using their knowledge of industry trends. These professionals are aware of all applicable laws that your business should follow, and what level of planning is necessary to meet these requirements. They may also propose solutions that have worked for other clients within your industry to help reduce auditing costs.
Tax agents use technologies and data-driven solutions to dig deeper into the auditing process. For example, artificial intelligence tools analyze journal entries to assess the cost-benefit of current workflows. In this way, recommendations for more efficient bookkeeping and tax processing can be made to further reduce daily expenses.
3. Connecting your business with top talent for bookkeeping tasks
Tax agents, such as Ruben D. Rosas, Inc. Accounting & Tax Solutions, are also valuable because of their extensive networks. As full-time professionals in the compliance industry, they can help you find and attract qualified employees who will streamline auditing functions.
Compliance professionals need to be knowledgeable in more than just accounting and tax laws. They should also have a strong technology background to operate advanced software as part of the auditing process. Your tax and bookkeeping agents will point you in the right direction when looking for top talent.