What are the biggest struggles manufacturers face with regard to tax compliance?
- Tracking thousands of SKU numbers that cross taxability rules or vary in taxability based on state
- Getting the rates right and filing the reports correctly
- Surviving an audit (which in this business is inevitable)
- Keeping track of all the smaller jurisdictions and their special districts
- Ensuring a seamless process that is audit-able
- Figuring out what is taxable and what isn’t
- Tracking use tax
As with other manufacturing processes, having a repeatable, consistent process with sales and use tax compliance means automation. Automating sales and use tax compliance with a solution that ensures that consistent, accurate process means a solution that delivers:
- Accurate sales and use tax calculations for collections that take into account product taxability, location, rules and regulations.
- An exemption certificate management process that enables digital collection and storage of exemption certificates as well as transaction association and timely renewals.
- Flow-through returns processing that provides a liability worksheet for review for each return filed, empowering your company to have oversight and visibility to all your sales and use tax liabilities and remittance.
- Best practices in managing your sales and use tax processes and easy access to all data in case of an audit.
- Up-to-date sales and use tax rates and information.
Using an automated solution for sales and use tax compliance helps manufacturers and distributors stay up-to-date with the latest changes in sales and use tax information. Consistency, repeatability, and accuracy help to reduce audit risk and potential negative assessments. Critical features to look for in an automated solution:
- Easy integration with your back-end financial applications and/or inventory management software.
- Ecommerce integration capability.
- Geospatial technology to ensure “to the rooftop” level accuracy for locations.
- Accuracy and speed.
- Accessibility of information—anywhere, anytime.
Contact Crossroads RMC to learn how the Avalara - AvaTax integration can benefit your company. 800.762.2077