How to use AI for business tax   

This blog explores how AI can revolutionise business tax.  

We'll dig deeper into the limitations of the traditional, time-consuming approach and show you how these tools can streamline the process, minimise errors, help you maximise your deductions, and make your Sunday evenings more relaxing.   

If you're intrigued by the possibility of a smoother, less stressful tax season, this is for you.

If you think it's only businesses using AI for tax, think again! 

The ATO harnessed the power of sophisticated technology to recover a staggering $530 million in unpaid taxes and prevent a whopping $2.5 billion in fraudulent claims.  

Their secret weapon? Smart tools that identify patterns and automate tasks, freeing up valuable time for human expertise.  

Sounds like they have their own version of Thriday. 😆

Struggles of traditional taxation

Dealing with complexity   

Claiming deductions for business expenses can be tiring and confusing. The ATO publishes a massive amount of information, and specific rules apply to different types of expenses. This makes it difficult for taxpayers, especially small businesses, to know precisely what they can claim and what they can't.  

Australian tax laws are constantly evolving, with updates and amendments happening year after year. A good example is the new tax rate for 2025, which has been released, outlining reduced marginal tax rates.   

Keeping track of these changes and ensuring tax compliance becomes a significant burden for taxpayers and their accountants.  

Manual processes and human error   

Manually entering data from countless invoices, receipts, and bank statements into spreadsheets is too repetitive and time-consuming, making it more susceptible to errors.   

On top of that, a single misplaced digit can have significant consequences. For example, a transposed number in a business expense could lead to an overstated deduction, potentially triggering an audit.   

Manual data entry errors often must be noticed, especially when dealing with large datasets. These hidden errors can remain undetected until tax filing, causing delays, penalties, and unnecessary stress.    

Limited time and resources   

Tax season throws a spanner in everyday business operations for many owners. They need help to juggle their daily tasks with the added burden of tax preparation, including reconciling accounts, generating financial statements, and completing complex tax forms.   

Worse than that, tight deadlines exacerbate the time constraints, leading to stress and feeling overwhelmed. This pressure can cause inefficiencies and a higher likelihood of overlooking substantial deductions or credits that could save money on taxes.   

Lack of insights and optimisation   

Without real-time access to financial data, business owners often lack the insights needed to make informed tax decisions. They might be "flying blind" when it comes to their actual tax liability, potentially overpaying or missing out on deductions. Something AI can help with is forecasting and modelling what your business cash flow might look like over the remainder of the financial year.

We do this in Thriday 

Embracing AI for business tax   

AI-powered tools like Thriday offer a solution to the challenges of manual tax processes. For example, optical character recognition technology can extract data from documents, such as receipts or invoices, with high accuracy. This reduces the need for manual data entry and lessens the risk of errors, leading to more accurate tax filings. Once the data is extracted, AI matches receipts to transactions, saving hours each week for business owners.

Can AI help your business with tax? Take the quiz and find out

Streamlining processes and reducing compliance burden   

Optimising tax strategies and maximising deductions   

The pressure to maximise deductions while staying ATO compliant is immense.  Manually sifting through data, deciphering complex tax rules, and ensuring everything adds up can be a massive time drain.  Even accountants can experience the issue of 'human error.'

This is where AI-powered tools like Thriday come in. AI can analyse your transaction data, identifying eligible deductions according to ATO guidelines. This means you can claim the business expenses you're entitled to, potentially leading to a more significant tax return.  

Thriday automates expense categorisation, sorting your transactions based on industry standards and ATO requirements. This frees you up from the tedious work and allows you to focus on developing tax-saving strategies.  

Take advantage of predictive tax planning  

Be proactive, not reactive, when it comes to tax time! Thriday's AI goes beyond simply analysing past data. It leverages that information to predict future trends so you can make data-driven recommendations based on your unique financial situation. This empowers you to develop a strategic tax plan throughout the year rather than scrambling at the last minute.  

Thriday's automated tax forecasting feature takes the stress out of estimating your tax liabilities. It crunches the numbers in the background, calculating your tax bill throughout the year and shows you a forecasted prediction of what your tax could be at the end of the financial year.

The longer you're with Thriday, the smarter it gets.

Thriday is your strategic all-in-one financial management partner, not just a tool.  

Whether you're looking for versatile invoice, receipt, accounting and bookkeeping software Thriday is your strategic all-in-one financial management partner, not just a tool.  Going beyond automation, Thriday fosters a strategic partnership with your business.    

Our AI technology provides valuable efficiency gains as well as insights and analysis, empowering you to make data-driven decisions and develop long-term financial strategies.  Thriday doesn't just process transactions – it becomes a trusted tool, helping you navigate the complexities of business finance and achieve business success, whatever that may mean to you. 

You don’t have to be an expert prompt engineer to leverage AI when it comes to your business finances. Thriday does that for you.

Our job is to eliminate as much financial admin as possible for small businesses. AI is a big part of that.

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