Multi-state tax calculation has always posed a big challenge to accountants in the IT staffing firms because unlike other businesses that have to deal with only one, or a maximum of two states, staffing accountants have to manage with all the states (at least in theoretical situations). It is not uncommon for accountants to be tasked with calculating taxes for 4 states on an average.
It is important for accountants to know that knowledge about state tax rates alone is not enough to complete the invoicing task; there are more complex issues that vary from state to state regarding taxing perks, travel and accommodation cost and withholding for federal tax and issuing an appropriate tax form to the consultant.
Role of CONSULT in Simplifying Tax Calculations
Though an experienced accountant or an invoice preparer will have been trained in most tax calculation procedures, it is a waste of time and energy if it is done manually each time a multi-state tax calculation is performed. It is often an inefficient way of invoicing for customers. The best way is to add an add-on like CONSULT so that accountants are relieved from repeatedly doing the same work again and again and exposing them to stress and increasing the possibilities of errors in invoices.
CONSULT is an invoice automation tool (and an add-on) for enhancing the invoicing, timesheet entry and other features in QuickBooks. IT staffing firms trust CONSULT for automating invoicing and vendor management. It reduces the workload on the accountant or invoice preparer by up to 90%. With CONSULT and QuickBooks combined, invoice preparation becomes invoice generation; meaning that all invoicing processes are carried out automatically at a guaranteed 100% accuracy level.
CONSULT and QuickBooks for Remote Timesheet Entries
One of the mainstays of CONSULT’s feature is the automated remote timesheet submission feature. Once QuickBooks and CONSULT are integrated and an account has been created for consultants, consultants can login with a secret password and start to submit timesheets in a single or multiple sessions. The multiple session ability empowers and encourages consultants to make timely submissions and save time substantially.
The automated timesheet submission is a critical database entry that contains all the essential input for making a precise tax calculation along with other information already stored with regards to the project for which the consultant has been assigned and is working.
The Benefits of Using CONSULT
The reasons why IT staffing firms prefer to add CONSULT to their QuickBooks are: fast processing, easy importing of financial data, automatic data validation and the highest level of accuracy.
CONSULT is software that uses the latest AI data capture technology that eliminates redundancy totally and an array of complex matrices of algorithms that define each step in the invoicing-to-VMS accounting cycle. Your accountant can never go wrong with tax calculation because every ingredient used in tax calculation – state of domicile of customer, consultants, subcontractors and respective state tax rates are validated and stored securely in the CONSULTS database.