When it comes to filing corporate taxes, things become complicated swiftly. The IRS says complex operations, international activity and multiple states make the average corporate return take up to 275 hours to complete. That is exactly why accountants use tools like CCH Axcess Tax and CCH ProSystem fx to handle these big filings.
If you run a corporation or do taxes for one, knowing how to use CCH software correctly and when you want an accountant, can mean the difference. These simple, practical CCH tax prep suggestions for complex corporate returns will keep you in compliance without anxiety.
Why CCH Tax Is the Go-To Software for Complex Corporate Taxes
CCH Tax software, particularly CCH Axcess Tax and CCH ProSystem fx Tax is trusted by CPA companies and financial teams all over the U.S.
It offers:
- Powerful automation tools.
- Seamless e-filing and tracking.
- State return integration with federal return integration.
- Features for real time collaboration.
- Built-in diagnostics for getting errors.
Although the software is effective but not always intuitive for newbies. That is the reason many companies engage an accountant or tax advisor with experience in the CCH ecosystem.
CCH Tax Prep Tips for Complex Corporate Returns
Below are 8 important tips to help you:
Tip 1: Set Up Entity Types Correctly From The Start
The biggest mistake businesses make when using CCH is choosing the wrong entity type during setup. Be sure you file under the proper classification - C corp, S corp, LLC taxed as a corporation, etc.
If you've no clue, a personal accountant can help. Filing incorrectly could raise red flags with the IRS and hold off processing.
Tip 2: Use Import Tools to Save Time and Avoid Errors
CCH imports information from Excel, QuickBooks online along with other accounting software. If you are still typing in trial balances or journal entries manually, you are wasting time and increasing the risk of mistakes.
Use the import templates in CCH. This is particularly helpful if your return contains numerous line items, like a detailed fixed asset schedule or several K-1s.
In case you are not confident mapping this on your own, you may hire an accountant to map anything for you and double check your data before filing.
Tip 3: Do Not Miss the Diagnostic Review
Before you sign your return, CCH performs a diagnostic review. Think of this as a spell checker for taxes, it will flag things like incomplete forms, math errors or incorrect data.
Numerous businesses skip this step, particularly when they must meet deadlines. Take your time with all the diagnostics and resolving the alerts. In case you have an individual accountant, this is generally part of their workflow and will protect you from costly mistakes or IRS rejections.
Tip 4: Watch Out for State Nexus Rules
In case your company has several states of business, you need to file in every state in which you've a tax nexus and CCH manages that for you.
The tricky part is that each state specifies the nexus by various rules. It might be a physical office, remote employees or a product sales threshold exceeding. CCH lets you add state-specific forms and apportion income properly.
But following all 50 states' rules isn't easy. This is exactly where you probably wish to employ an accountant that knows multistate corporate tax laws and the way to utilize CCH for compliance.
Tip 5: Use E-Signature & E-Filing Tools to Speed Up Submissions
CCH offers safe e-signature and direct e-filing with the IRS and nearly all states. This is a lifesaver whenever you have a time crunch.
Create your client sign-off workflows early to stay away from chasing signatures late. CCH tracks status and also sends you real time notifications when something is signed or submitted.
Many companies which have a personal accountant can outsource this whole process. Your accountant will prepare, send for signature & verify, which means you can return to operating the business.
Tip 6: Build a Checklist for Annual Corporate Tax Prep
Even though you use CCH every year, you can miss a step if you aren't organized. Make a checklist of:
- Reviews of financial statements.
- Adjustments & reclassifications.
- Importing trial balance data.
- Uploading depreciation schedules.
- K-1s review and ownership changes.
- Running diagnostics.
- Review and sign e-file authorizations.
- Making a final PDF copy of the return.
This checklist can keep you consistent year after year. When you hire an accountant, they generally have their very own refined checklists which lower mistakes and speed up turnaround time.
Tip 7: Cybersecurity Matters - Secure Your Data
CCH is a cloud platform (with Axcess) so you are not off the hook for data security. Only authorized team members have access, allow multi factor authentication and follow best practices for sharing tax documents.
Data breaches take place more frequently during tax season. In case you have a personal accountant, use secure portals and encrypted communications for sharing documents.
Tip 8: Use CCH Support & Learning Tools
Wolters Kluwer provides CCH customers with support articles, video tutorials and live webinars. In case you are in need of help figuring things out, such as apportioning state earnings or applying for a tax credit, there is most likely a guide already written.
Bookmark the CCH support website or sign up for updates emails. It is a fantastic way to be ahead of the curve in tax legislation changes and brand new application features. But in case you are short on time or simply overwhelmed, here is another reason you may need an accountant.
When Should You Hire an Accountant?
In case you are filing a basic tax return and you are confident with tax software, you can get it done yourself. But when your company is growing, expanding across states or even going through great transactions, you need assistance.
Signs you might need an accountant:
- You have gotten IRS notices or penalties before.
- You can't keep up with tax law changes.
- You employ people from several states.
- Your return has numerous complicated deductions or credits.
- You are focusing too much time on tax prep rather than running your business.
Having an individual accountant or CPA that knows CCH in and out will help you save time, stress and money throughout tax season.
Also read: Cost-Benefit Analysis: In-House Tax Prep vs. Outsourcing
Conclusion
Around 2 million corporate returns were filed in the U.S. in 2023, many utilizing software like CCH Axcess or ProSystem fx. It is a powerful software but planning, precision, tax prep tips and quite often an expert touch are needed to use it well.
Either you are doing it by yourself or you are thinking it may be time to bring in an accountant, the key is not to postpone the task till the last second. Start early, be organized and do not hesitate to request help, particularly in case your tax situation is becoming more complex.
Filing corporate taxes is never fun, but with the correct tools and guidance from our experts at The Fino Partners, they don't need to be stressful.
