Tax pooling is now recognised as best practice for accountants looking to provide their clients with flexibility for their provisional tax payments. However, the legislation covering tax pooling is complicated and cumbersome, which can lead to a higher risk of errors. Tax Traders reduces that risk with its market-leading software, meaning accountants can provide the full benefits of tax pooling to their clients with confidence.
Innovation that supports accuracy, while also saving time and making accountants’ jobs easier, is in fintech company Tax Traders’ DNA. Technical architect Tim Kirkpatrick says that the company’s approach to risk reduction is evidenced by its history of consistent advances in technology.
“By focusing our energy into software with automation top of mind, we’ve been able to create tools and features that marry accuracy and functionality for the best client experience possible,” he says.
Focus on automation
Automation is key to error reduction. With that in mind, Tax Traders has enabled its software to reduce as much manual input as possible.
“With some other tax pooling providers, transactions still require a fair deal of human interaction, which can lead to not only errors, but time wasted waiting for action,” says Kirkpatrick. “We set out to create automated tools that not only calculate what a transaction should be, but can create the transaction for you immediately.”
Pictured: Tim Kirkpatrick, Tax Traders
“We set out to create automated tools that not only calculate what a transaction should be, but can create the transaction for you immediately.”
Inland Revenue (IR) data connection
The first component of this approach is Tax Traders’ signature tool, the IR data connection. This tool combines live taxpayer data from IR with Tax Traders' tax pooling data, giving accountants a full view into a client’s tax obligations in one place.
“Any element of a system that’s removing the need for manual data entry is fundamentally reducing the possibilities for someone to transpose a number,” says Kirkpatrick. “Having clients connected to the feed eliminates the need for manual entry for basic input fields, which are often the easiest ones to get wrong, especially when you’re working quickly within a huge client list.”
Residual Income Tax (RIT) tool
The IR tax data connection works hand in hand with Tax Traders’ RIT tool, which helps optimise a client’s tax position.
“The RIT tool is an incredibly intuitive calculator that’s able to use the correct application of the various nuances of tax law to that particular client’s situation,” Kirkpatrick explains. “Systemised and programmed legislative logic will find the edge case that humans can’t always remember.
“We stand by the results the tool calculates, as long as the correct information has been inputted into the tool,” he adds. “In fact, we’re so confident in our tools and the results they provide, that we guarantee those results and take responsibility of the outcomes for our clients.”
Tech safety net
Tax Traders’ secret weapon and ultimate safety net for error prevention is a feature called Defender. “The previously mentioned features all exist prior to clicking the submit button. Defender runs those resulting transactions through a series of validations to spot potential inconsistencies,” says Kirkpatrick.
“From the start of a transaction right up until the finish, our tools ensure you and your clients are handled with the best care possible.”