How a payment platform that syncs with Quickbooks Online can streamline your tax filing prep

Integrating payment and tax data across a business is essential for efficiency and accuracy. Ideally, brands should have a single source of truth – one record of financial data that flows through and populates every other metric or calculation of interest. 

But such setups are rare. Most companies have gaps between various parts of their financial administrative systems, requiring staff to enter data and stitch the pieces together. 

Payment processing systems that sync with Quickbooks Online can help to prevent this. Using a point of sale system that integrates directly with Quickbooks Online aids in streamlining this process. When customers pay, the information goes straight into Quickbooks’ memory, reducing errors. 

The following are some of the specific ways adding a payment platform that syncs with Quickbooks Online can streamline tax filing prep.

Simplified reconciliation.

Integrating your payment platform with Quickbooks Online creates simplified reconciliation. Administrative staff no longer need to match POS transactions to bank statements. Instead, Quickbooks Online's syncing feature can mediate that process automatically. 

Simplifying reconciliation errors is essential for tax purposes. POS systems integrated with Quickbooks Online create a history of all digital payment transactions and help generate reconciliation reports. These ensure accounts remain balanced, making it more straightforward for auditors to verify your records. 

Streamlined reporting.

Payment platforms syncing with Quickbooks Online let you simplify your accounting by generating customized documentation incorporating data from your bank statements, account transfers, and customer/client payments. These allow you to prove how money is flowing around your business. Furthermore, reports contain additional information and proof-of-origin data for confidence and peace of mind during auditing processes. 

Organized expenses.

Expense organization is time-consuming when done manually. However, integrating Quickbooks Online with your payment systems can automatically categorize customer spending, reducing the manual work people on your team need to do. 

This integration allows you to categorize transactions according to settings. You can define specific categories, such as deductible and non-deductible expenses, reducing the need to sift through them by hand at the end of the tax year. 

Everything should be in its proper place, reducing the need for late nights in the run-up to the tax deadline. 

Centralized data.

Lastly, syncing your payment platform with Quickbooks Online gives you centralized, consolidated financial data about your company. 

Everything is in the same place - including all your invoices, transactions, and tax payments. Manual data entry is limited or not required at all.