Tax times are not so terrifying with Sales Tax automation software
If you are going digital in every sphere of your life, then why skip the most unavoidable part of your businesses existence- Taxes? Often, we tend to believe that taxes is a function that plays in silo, however, if not done correctly it can impact business revenues dramatically. Businesses that calculate their taxes, on the basis of the zip code of shipment to the USA, please pause, rethink and restart.
Apologies (in advance) to prick your fantasy bubble, but there are a lot more lines and checks to a 5-digit zip number staring at you. You need to read between (above, below, across and diagonally) the lines.
So, let’s begin with a rudimentary question: What is Sales Tax Automation?
To put it in less taxing terms, it’s a software that calculates your sales tax obligations by integrating with your invoices/ERP systems and capturing all specifics from your invoice like location, product, sales amount etc.
Do you really need Sales Tax automation?
Well, if you can calculate your sales tax factoring constantly changing rates, rules and tax rates, manage your exemption certificates effectively, decode and still come out error-free without losing sane night’s sleep, , you don’t need software! You’re a tax superhero (only less interesting, but nonetheless super).
Those of you, who agree that Sales tax management when selling to countries like the USA, can break your neck, let us validate your thoughts:
1. A stitch in time can save nine (thousands of USD in penalty)
Sales tax regulations can vary by state, and it can be challenging to keep up with changes to tax rates and rules. Governments are becoming more aggressive when it comes to sales tax compliance (or say non-compliance). Officials can be standing in your foyer with chargesheets of missed deadlines, failed compliance or incorrect calculations. The penalties can be steeper than you can fathom.
2. A clear picture of cash flow
If the financial data is organized meticuluously, there is no room of errors and misrepresentaion. Automating sales tax compliance can help businesses manage cash flow by ensuring that they are accurately collecting and remitting sales tax on a timely basis. Hence, businesses can improve cash flow management and drive business decisions on the pivot of accurate financial status and capacity.
3. A digital medicine a day keeps the taxman away
The software can manage and display your sales, invoices accurately andin an organized way. in instances of any audit, you don’t have to panic as the machine has done its math. Businesses don’t have to scramble to put numbers in order, as everything is taken care of to display an organized picture.The software paints a picture of your dues and liabilities and gives a luid picture of all payments
An Avalara’s customer’s true story: “We answer with such confidence and authority now; the auditors have moved on to someone else.” —Lois Browne, Vice President of Finance, Dylan's Candy Bar
Read here about the case study, on how Dylan’s Candy Bar resurrected confident financial tax management with Avalara.
4. US sales tax: A taxpayer’s nightmare
So, as a non-US seller, you must know that you need to take a stock of multiple local jurisdictional rules as well. To make matters complex-er, there are more than 13,000 sales and use tax jurisdictions in the United States" In the US, not only state laws exist but even cities and municipalities have different tax rules. In a nutshell, you need to check deadlines, styles of filing, varied tax rates- all in all, a multitude of rules and checks. So, it is always helpful to get a sales tax software to manage your taxes and keep a track of all the rules, rates and work, while you take care of your business. Automated software can update tax rates, exemptions, and rules automatically, ensuring that businesses are always in compliance with the latest regulations.
5. Focus on growing business, not your account department
It is important that as a business owner, you strategize your energies to focus on growing your business sales and not the number of employees in your finance department. Sales tax automation software can take care of the hassles and menace of compliance while you focus on growth and betterment.
To wrap up the virtual tête-à-tête, we’d like to say that adopting a mechanized method of sales tax compliance can save you time, increase efficiency, grow your business, dodge prospective penalties and keep you informed and ahead. An offer you can’t refuse!