{"id":11673,"date":"2023-04-03T22:41:37","date_gmt":"2023-04-03T22:41:37","guid":{"rendered":"https:\/\/taxops.com\/?p=11673"},"modified":"2023-04-03T22:41:39","modified_gmt":"2023-04-03T22:41:39","slug":"how-do-i-find-the-right-sales-tax-automation-tool-for-my-business","status":"publish","type":"post","link":"https:\/\/taxops.com\/how-do-i-find-the-right-sales-tax-automation-tool-for-my-business\/","title":{"rendered":"How Do I Find the Right Sales Tax Automation Tool for My Business?"},"content":{"rendered":"\n<div style=\"height:37px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/04\/How-Do-I-Find-the-Right-Sales-Tax-Automation-Tool-for-My-Business-1024x536.png\" alt=\"\" class=\"wp-image-11674 lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/04\/How-Do-I-Find-the-Right-Sales-Tax-Automation-Tool-for-My-Business-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/04\/How-Do-I-Find-the-Right-Sales-Tax-Automation-Tool-for-My-Business-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/04\/How-Do-I-Find-the-Right-Sales-Tax-Automation-Tool-for-My-Business-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/04\/How-Do-I-Find-the-Right-Sales-Tax-Automation-Tool-for-My-Business-1024x536.png\" alt=\"\" class=\"wp-image-11674 lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2023\/04\/How-Do-I-Find-the-Right-Sales-Tax-Automation-Tool-for-My-Business-1024x536.png 1024w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/04\/How-Do-I-Find-the-Right-Sales-Tax-Automation-Tool-for-My-Business-980x513.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2023\/04\/How-Do-I-Find-the-Right-Sales-Tax-Automation-Tool-for-My-Business-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>Clients may lean on you for support in evaluating automation tools. Here are a few questions to keep in mind as you advise them.&nbsp;<\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">By <a href=\"https:\/\/taxops.com\/judith-vorndran\/\" target=\"_blank\" rel=\"noopener\" title=\"Judy Vorndran\">Judy Vorndran<\/a>, J.D., CPA, TaxOps, and Nancy Steele, TaxOps<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">This article was originally published at <a href=\"https:\/\/sovos.com\/blog\/sut\/how-do-i-find-the-right-sales-tax-automation-tool-for-my-business\/\" target=\"_blank\" rel=\"noopener\" title=\"Sovos\">Sovos<\/a> on March 7, 2023. <\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">To deal with the uncertainty of evolving sales and use tax policies in numerous jurisdictions, businesses have increasingly turned to software providers to deliver the right rates and calculations for each transaction. Unfortunately, calculating the amount of tax due is only part of what it takes to stay compliant. First, it\u2019s essential to&nbsp;<a href=\"https:\/\/sovos.com\/blog\/sut\/which-sales-tax-solution-does-my-business-need\/\" target=\"_blank\" rel=\"noreferrer noopener\">find the right sales tax automation tool<\/a>&nbsp;for your organization. But how do you know you\u2019re making the right investment?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses must properly administer sales tax from point of sale through remittance and reporting. Sales tax automation is an integral part of a much broader, multilayered sales tax administration process. It\u2019s necessary to peel back the onion by jurisdiction (e.g., state, municipal, home rule, special district), activity and type of tax. This must happen before making key decisions around what your business does, where it is located and how the company is required to comply. It is only then that businesses are ready to evaluate which sales tax automation tool is the right fit for successful integration and ongoing compliance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Administration before automation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Sales tax automation tools are typically prospective in nature, supporting compliance going forward. They do not fix prior instances of non-compliance or resolve past errors. However, some managed services teams offer back filing options, which could be beneficial for companies that may have had compliance issues in previous filing seasons.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Overall, businesses must use an administrative lens to understand past, present and future activities that impact sales tax liabilities, risk and business strategies. This includes&nbsp;<a href=\"https:\/\/sovos.com\/blog\/sut\/is-the-time-right-for-a-sales-tax-nexus-review\/\" target=\"_blank\" rel=\"noreferrer noopener\">analyzing your business\u2019 nexus<\/a>&nbsp;(physical and economic), potential risk exposure, taxability requirements, sales tax and income tax. Sales tax registrations beget income tax obligations, so do not overlook income tax as a source of risk in your sales tax compliance plan.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><a href=\"https:\/\/sovos.com\/wp-content\/uploads\/2023\/03\/taxopsblogimage.png.webp\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/sovos.com\/wp-content\/uploads\/2023\/03\/taxopsblogimage.png.webp\" alt=\"\" class=\"wp-image-243513 lazyload\"\/><noscript><img decoding=\"async\" src=\"https:\/\/sovos.com\/wp-content\/uploads\/2023\/03\/taxopsblogimage.png.webp\" alt=\"\" class=\"wp-image-243513 lazyload\"\/><\/noscript><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Once the landscape of what you have and what you need is defined, it is time to evaluate sales tax software.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Focus on past, present and future needs<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When selecting an automated service solution, be sure to consider the business\u2019 footprint, sales volume (number of transactions and dollar amount), taxability of items, general ledger system integration and managed services requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition to the technical components that must match up, businesses also make decisions around internal resource allocations, maintenance protocol and ongoing administration. Hiring a product-agnostic expert can help you vet each option, choose the right solution for your operations and then implement appropriate management procedures for compliance. An automated sales tax solution can help your business streamline the entire sales tax process and free up internal resources to focus on other key business initiatives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although every business taxpayer enters the selection process with a unique set of facts and circumstances, here are some basic questions to ask during your search:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What are the strengths and weaknesses relative to your business?<\/li>\n\n\n\n<li>Do we need end-to-end or ala carte options for integration with legacy systems?<\/li>\n\n\n\n<li>Do we have processes in place for purchasing, installation and management?<\/li>\n\n\n\n<li>What installation obstacles (i.e., connector challenges) do we have?<\/li>\n\n\n\n<li>What support and training resources do we need?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">View the entire sales tax picture<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The right sales tax automation tool is managed by a knowledgeable person or team, either in-house or outsourced, that understands the end-to-end compliance process and the details of administrative tasks, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Error management<\/li>\n\n\n\n<li>Invoicing protocol<\/li>\n\n\n\n<li>Exemption certificates<\/li>\n\n\n\n<li>What returns to report and where<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Whether you are evaluating sales tax automation solutions for the first time or considering a change, remember to take a comprehensive view of your organization. Compile the right team to help manage the process and opt for a solution that can grow with your business. Sales tax is complicated but staying compliant doesn\u2019t have to be.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><a href=\"https:\/\/taxops.com\/judith-vorndran\/\" target=\"_blank\" rel=\"noreferrer noopener\">Judy Vorndran<\/a>&nbsp;leads the SALTovation team at TaxOps. She has been making sense of state and local tax for businesses for over 25 years.&nbsp;<a href=\"https:\/\/taxops.com\/nancy-steele\/\" target=\"_blank\" rel=\"noreferrer noopener\">Nancy Steele<\/a>&nbsp;coordinates state and local tax at TaxOps.&nbsp;&nbsp;<\/em><\/p>\n\n\n\n<div style=\"height:59px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">More Tax News<\/h3>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>\n\n\n<div style=\"height:59px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/#subscribe\" target=\"_blank\" rel=\"noreferrer noopener\">Subscribe to Tax News<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Clients may lean on you for support in evaluating automation tools. Here are a few questions to keep in mind as you advise them.&nbsp; By Judy Vorndran, J.D., CPA, TaxOps, and Nancy Steele, TaxOps This article was originally published at Sovos on March 7, 2023. To deal with the uncertainty of evolving sales and use [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":11674,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[229,226],"tags":[825,782,388,133,781,823,54,778,126,459,27,265,70,487,824,48,822,49,50,563,783,30,751,620],"class_list":["post-11673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-state-and-local","category-tax-news","tag-825","tag-accounting-professional","tag-accounting-professionals","tag-accounting-today","tag-aicpa","tag-amortization","tag-award","tag-capitalization","tag-cpa","tag-expenses","tag-federal-tax","tag-finance-professional","tag-hiring","tag-job","tag-law","tag-rd","tag-rd-expenses","tag-research-and-development","tag-research-credit","tag-research-expenses","tag-section-174","tag-state-and-local-tax","tag-tax-optimization","tag-tax-professionals"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2023\/04\/How-Do-I-Find-the-Right-Sales-Tax-Automation-Tool-for-My-Business.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/11673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=11673"}],"version-history":[{"count":1,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/11673\/revisions"}],"predecessor-version":[{"id":11675,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/11673\/revisions\/11675"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/11674"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=11673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=11673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=11673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}