In addition to constantly acquiring customers in new states, Duo is always evaluating voluntary registration in some states, just to be on the safe side. “Once the decision is made, we can turn on nexus, and begin collecting and filing, with the push of a button,” says the analyst.
Automation to the rescue
By streamlining the tax calculation and filing processes, Avalara has liberated Duo’s tax team to focus on higher-value activities. In fact, by automating sales tax calculation with AvaTax, Duo estimates they’ve saved roughly a half million dollars.
“We spend more time on analysis, and less on transacting and processing taxes,” they say. “Filing returns, by itself, can bog a team down for most of a month. During that cycle you can’t do any meaningful analysis or reconciling or implementation of internal controls, much less take a day off.”
Peace of mind is priceless
The team also rests easy when it comes to the risk of audits. Duo sells SaaS and tangible media with software, and the taxability of their products varies from state to state. “It’s great that Avalara understands those nuances,” says the analyst. “Avalara’s reports are designed to satisfy an auditor’s expectations. So when or if an audit comes, Avalara gives us much greater confidence in the outcome.”
That kind of confidence is a level above mere optimism. “We’re growing so fast, and Avalara’s ability to scale with us has been essential,” they say. “We’re in the process of rolling out Salesforce and Recurly, which will both integrate with AvaTax. We’ll be able to rely on Avalara as we continue to scale and grow.”