Avoid Expensive Sales Tax Compliance Mistakes With These Recommended Software Solutions
Many businesses struggle with finding the best tools to ensure that they are aware of - and overcoming - sales tax compliance challenges. Your CPA can consult on a wide array of sales tax compliance issues, and the first thing he or she will advise organizations that are quickly-growing, consistently introducing new products or services, and entering or navigating the world of e-commerce, is that up-to-date compliance software is a must-have when it comes to minimizing the risk of severe and expensive mistakes.
We have compiled a list of some of the software options recommended by Doty state and local tax expert, David Volkert.
These software packages generally offer two levels of service:
Lookup and reporting tools which integrate with your accounting system to compute the tax and generate reports for tax filings
Compliance tools which file the returns themselves
Typical features that are added as you move to the higher end compliance solutions:
A database which tracks and maintains exemption certificates
Features which can assist you in complying with non-sales tax transaction taxes
Tools to use for internal use tax reporting
Compliance with international transaction taxes such as value added taxes
Custom development of tools and reports for unique tax situations
Small Business Solutions
Generally under 5,000 transactions per month
Mid Market Solutions
Marketed as a solution for all businesses, but are a little more expensive than the small business solutions, and don’t have the same level of features as the enterprise solutions
Enterprise Business Solutions
Products marketed with other solutions beyond sales tax compliance - able to handle generally any “transaction tax” where the tax is levied on a specific amount, ie. an excise tax, some payroll taxes, etc.