With the recent release of QBD Connect, a Quickbook desktop integration API, businesses can integrate the popular accounting software across a variety of other business-oriented packages. Enterprise leaders, Chief Technology Officers, and other IT professionals frequently rely on software integration packages to coordinate and streamline a variety of processes around inventory control, logistics, data coordination, and other business functions. With many Chief Financial Officers (CFOs) and small business accountants making preparations for the 2022 income tax filing season, QBD Connect can provide a well-needed tool in ensuring a faster and more efficient workflow.
How The IRS Utilizes API Integration
Although QBD Connect provides API integration for a particular software package, it is not the only use of software integration in income tax preparation. In 2021, the Internal Revenue Service (IRS) announced that it was running a pilot program around API integration as a secure method of tax transcript retrieval. Working with a small number of companies, the IRS announced that Canopy had developed a Transcript API Tool that allows someone with permission to access client records (such as a Power of Attorney) to access easily readable transcripts that provide actionable recommendations.
Citing their own need to upgrade their technology, the IRS developed this program in an effort to streamline and modernize its services. Giving accounting professionals and larger firms the ability to easily access data enables them to perform their jobs more effectively. In addition, several other software ventures will need to integrate the Canopy Tax Resolution into their own financial and business-oriented software packages in order to stay current. As an example of API integration, Canopy provides a well-needed tool that, like QBD Connect, can aid in your income tax preparation activities.
How QBD Can Impact Income Tax Preparation
Income tax preparation across a variety of personal and business domains, from small and medium-sized businesses to larger enterprises, usually starts within the fourth quarter of the previous year. Many of these functions include procedures to start the process in mid-January, including
- Consulting internal financial professionals about appropriate taxes to be paid
- Consolidation and record of income and business expenses;
- Generation and sending of appropriate payroll statements to employees, contractors, and other workers;
- Year-end inventory of resources and other assets, including logistics, raw materials, and other necessary items.
As a Quickbooks desktop integration tool, QBD Connect provides multiple benefits for income tax preparation, including
- Data sharing across multiple platforms, providing greater coordination and accuracy without the need for manual entry;
- Ease of data entry, providing real-time insights and greater accuracy around customer numbers and income/revenue;
- Integration of data from various software packages with Quickbooks data across legacy systems ensuring smoother processes;
- Greater accuracy in data concerning overall business expenses, including accounts payable, accounts receivable, and inventory control
- Integration of corporate payroll data ensures accuracy of W2 and 1099 statements to appropriate workers.
- Streamlined processing allows businesses to meet critical deadlines including the filing of the business’ tax return.
QBD Connect and Other Financial Functions
Even after a business submits its final income tax return, QBD Connect’s functionality allows for integrating multiple software functions and fostering revenue growth. These include
- Inventory and Warehousing Control, providing a business with real-time insights into manufacturing and shipping patterns to inform purchasing decisions;
- Order Entry, providing a method for integrating customer data and revenue with other business functions and informing other business functions;
- Greater Digital Flexibility through software integration across multiple devices and legacy systems.
Although income tax preparation can be daunting for many businesses, API integration can ease the process. With many businesses using Quickbooks’ desktop software, managing that process can be rather complicated and time-consuming. By using the QBD Connect API integration tool, businesses can streamline their tax preparation processes and provide more accurate information while reducing costs.