Most businesses are aware that a managed services model for IT services can assist them to improve the cyber security protecting data and assets from attacks by hackers. In truth, however, managed services can also be of great benefit to SMBs during tax season as well.
According to the New York Times, small and medium sized businesses today have to deal with more tax paperwork than ever before, often at both the state and local level. The traditional response to these demands is to work with a bookkeeper or accounting firm and to use financial software packages that are purchased off the shelf. Unfortunately, these are not truly suited to deal with the enormous amount of complex data that may be relevant to many of today's tax issues for SMBs.
Managed services providers can greatly improve this situation. An MSP has the capacity to modify or adjust an accounting software package to that it truly matches the tax needs of a particular business. Then, that package can be implemented as part of a managed services approach that automatically tracks inventory and calculates appropriate depreciation, among other functions. Managed services can also handle human resources functions that have tax implications, thus simplifying compliance issues for SMBs.
One advantage of this approach for SMBs is that tax season may become less of an event since tax issues are being properly documented during every month of the year. Another advantage is that in a time of falling revenues, and more aggressive tax investigation, SMBs will be better prepared to demonstrate that they have paid taxes correctly and on time.