Using Data Analysis in Tax Planning

Using Data Analysis in Tax Planning

It’s that time of year again. Tax documents have been sent and the filing deadline looms large. In terms of confusion, 2020 was a banner year for more than just COVID and income data analysis in tax planning is need more than ever.

If you want to minimize your liabilities and avoid government scrutiny, income tax data analytics are an asset. They’ll help you uncover new opportunities and keep more of your hard-earned money without incurring penalties.

Getting a Better Understanding of Data Analysis

Businesses do not make financial decisions in a bubble. They make their decisions based on current economic conditions and predictions about the future. All predictions are rife with uncertainty.

However, past economic data is used and analyzed to identify patterns indicative of what is coming. Artificial intelligence is a powerful tool that is improving the accuracy of business forecasting models.

The Benefits of Income Data Analysis

It’s difficult for the average person to keep up with changes in an increasingly complex financial environment. That’s never been more true than now. Income is no longer limited to paychecks, profits, or a few investments. 

More often, individuals and business owners are turning to CPA firms to cut through the confusion. Accounting professionals are well-placed to manage your money and reduce your obligations to the IRS. Serving an increasing number of clients means that money managers must rely on leveraging their findings to prepare and and file taxes.

What Does Data Analysis do For Your Business?

Implementing current technology makes our job easier. It also allows us to serve more clients, and to do so on an individualized level. No two situations are the same, and you deserve advice that’s tailored toward your needs and future goals. 

Scalability and personalization aren’t the only advantages of using data analytics. The right suite of applications and software in the hands of an expert will:

 

  • Allow us to identify trends and areas of risk
  • Improve accuracy
  • Provide deeper understanding of client finances
  • Equip clients make informed decisions
  • Ensure compliance
  • Save time

Never Fear Being Audited Again

In addition to timely reporting and greater accuracy, analytics ensures that any audits are shorter and less painful. Due to the ability of current accounting applications to integrate and collect all relevant information in one database, your risk of being audited is also reduced. All of the information we need is available from anywhere on an in-house, cloud-based infrastructure, and we’ll have it in real time.  

This allows us to locate and make sense of huge amounts of data faster and more accurately than a team of accountants could in the past. Such capabilities are more essential than ever in a world of PPP loans, lockdowns, downsizing, independent contractors, and corporate mergers.

Utilizing Experts and Technology

Preparing data isn’t just a seasonal activity. It’s a year-round, accumulative process that takes experience, knowledge, and attention to detail. You want a team that can navigate the complexities of finance in a more globalized, digital world. 

Our firm understands the challenges facing today’s business leaders. We consider it our mission to leverage technology to streamline processes while putting our expertise in various industries on the line for you. 

We work with the goal of forming long-term, trusted relationships with companies, individuals, and trusts. By utilizing platforms and apps that minimize cost without sacrificing service, you’ll enjoy timely, accurate financial data that is geared toward shaping your company’s future for the better. 

Discuss your unique situation with our team

This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.

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