Earnix’s global growth story – moving to automation with Avalara Avatax

Earnix’s innovative software and AI solutions allow insurers and banks to provide dynamic pricing and product personalisation services to their customers. Founded in 2001, the business now has offices in North America, Europe, Asia Pacific, and Israel.

Rapid global growth meant the finance team quickly realised they would need to automate their processes to ensure the business remained tax compliant and reduce risk. They found the compliance landscape particularly challenging in the US, with its complexities of economic nexus and myriad sales tax rules. The team could also see that automation would save time and allow them to focus on more valuable work

Previously, the team at Earnix was managing their tax compliance manually with the support of a US-based accountant. This involved tracking economic nexus, shaking sales tax rates and filing taxes manually. But with over 12,000 jurisdictions in the US and a complex range of rates that can change street by street, they knew that they wanted a more efficient automated solution that could guarantee accuracy and compliance.

As Ofir Shaish, Head of Finance at Earnix said, “As the business grew, we reached the point where tax compliance was taking up too much time. So we looked around for a supplier to partner with, and Avalara was recommended to us. The team was impressed by the reputation of Avalara AvaTax, and the fact that many US states use the software to audit their own compliance.”

With AvaTax, the team at Earnix now have a simple way to monitor whether their number of transactions or sales volumes mean they have triggered nexus in a state. AvaTax alerts them when they are approaching the threshold in a state, they can then use the support of the team at Avalara to register and automatetheir tax filing. Earnix is currently filing in eight states across the US and this number is set to increase rapidly, so the solution will save the business a huge amount of time which it can spend on other priority projects.

Another attraction of AvaTax was its pre-built integration with Earnix’s existing ERP, Netsuite.

The Professional Services team at Avalara worked with the finance team at Earnix to ensure that the integration went smoothly. Even with a pre-approved connector, there can still be complexities to overcome to ensure that the systems work exactly the way a client needs. This is where having expertsupport can really help.

Ofir Shaish said: “Working with the Professional Services team at Avalara meant we were able to get things up and running in just seven weeks. We’re just starting to work with the new tool and we can already see it’s going to save us a great deal of time, reduce risks for our business and mean that we can be confident that our tax compliance is accurate.