Firewire Surfboards manages nexus exposure across new markets

Since 2006, Firewire Surfboards has been dedicated to improving the surfing experience through innovative and quality products built with the conscious minimization of impact to the planet.

As Firewire Surfboards expanded its market presence through direct-to-consumer (DTC) and wholesale distribution, the challenge of managing sales tax compliance across states and international borders grew increasingly complex. Operating with a lean accounting team and navigating a surge of ecommerce activity driven by the pandemic posed significant challenges. However, for Firewire, the complexity was further exacerbated by its consignment model, which triggered nexus — the legal requirement for businesses to collect and remit sales tax on transactions made within those states.

This heightened nexus exposure increased the administrative burden of managing sales tax reporting across multiple jurisdictions. “We needed to find a scalable, single source of truth solution,” says CFO Franklin Shiraki. Transitioning to a cloud-based system could not only offer scalability but also increase accuracy and efficiency in navigating such a complex tax landscape.

Prioritizing seamless integration, Firewire effortlessly incorporated Avalara tax compliance software into its cloud-based ERP system, Acumatica. Within just 30 days, the company automated everything from sales tax calculation to state sales tax registrations, providing much-needed reassurance amid heavily impacted wholesale operations.

“Avalara made it possible for us to add on sales tax compliance to our day-to-day roles without adding headcount,” remarks the CFO.  Avalara’s flagship solution, Avalara AvaTax, along with other sales tax compliance tools, empowers Firewire’s accounting team to easily reconcile sales tax liability without expanding its workforce.

Firewire prioritizes satisfied customers, with a foundation built on reliable operating systems. “Avalara flags us when we have potential sales tax exposure in new jurisdictions, which makes it scalable with our business,” Franklin explains. Plus, with nexus coverage, the company can sell confidently anywhere. “Our customers can trust the information we provide because of our trust in Avalara,” Franklin adds. “We can reach customers anywhere there is an internet connection.”