Sales Tax Compliance
Dave’s Bookkeeping and Tax Service has partnered with Avalara to run your sales tax more effectively.
WHO benefits most from sales tax automation?
Companies that have a high level of business complexity including:
❑ A large amount of SKUs or products
❑ A high volume of transactions
❑ Selling into multiple states or internationally
❑ High volume of exempt sales
❑ Acquiring or merging with another company
❑ Expanding into new locations
❑ Beginning to sell online or internationally
❑ Adding new products or services
Companies where their go-to-market strategy includes:
❑ Selling to wholesale, distribution, resale customers or not-for-profits.
❑ Remote employees or field sales
❑ Attending tradeshows
❑ Dropping shipping and third-party fulfillment or distribution
❑ Warehouses or inventory in multiple states
❑ Affiliate marketing
WHEN is it a great time to talk about tax compliance?
If your company is experiencing change, it’s a great time to talk about sales tax. This includes:
❑ Executive or staff changes such as a new CFO, Controller or finance manager
❑ Changes to the company structure or undergoing a significant reorganization
❑ Implementing a new ERP, ecommerce or accounting system
❑ Current financial platform is nearing end-of-life or requires an upgrade
❑ Going through an audit or getting a notice of an upcoming audit
WHY it makes sense to automate sales tax management
❑ Sales tax is complex. There are more than 12,000 taxing jurisdiction in the U.S. Each of the 45 states that collects sales tax has different rules and regulations around what and how products and services are taxed or exempted from sales tax.
❑ The rules are constantly changing. Legislative changes take place on a regular basis and there’s a great deal of variance state to state regarding sales and use tax. On average, there are more than 14,000 changes to tax rates and rules happening every year.
❑ It’s a drain on company resources. Handling sales tax in-house can take up a significant amount of your staff’s time. In fact, the average small to mid-size company spends $67,000 a year in employee costs to manage sales tax. For larger companies, this is closer to $400,000.
❑ It’s a high-risk activity. It’s very easy to make an error or overlook a tax obligation. While seemingly innocuous, getting it wrong can end up costing you a substantial amount if the state finds you out of compliance.
❑ Automating sales tax can reduce the amount of time, money and risk that impact your business related to compliance-related activities.