3 Top Sales & Use Tax Skills Your Tax & Finance Team Needs

Olivia Bilodeau
July 2, 2021

Sales and use tax compliance is quickly becoming a critical function for numerous types of businesses. When it comes to your tax and finance team, each employee should of course have basic knowledge of tax details, but what other areas are truly essential? How can you ensure that your finance team is ready to help your business stay compliant and up-to-date on the latest tax requirements? In today’s increasingly digital world, organizations must have a tax and finance team knowledgeable on tax details, informed of the latest security and compliance needs, and able to continuously adapt to evolving trends. 

An understanding of business operations, tax details

It is not news that sales and use tax is complicated. But even so, tax teams must stay up-to-date on the latest requirements for remaining compliant. Additionally, each employee has to know how their business operations are impacted by evolving sales tax requirements. For example, if your company is based in New York but has ecommerce sales in 10 other states, what are your economic nexus requirements? Similarly, direct selling companies typically offer goods subject to complex sales tax requirements. Does your tax team know how each state in which you sell administers their tax?

A strong tax employee knows the ins and outs of your business and understands every sales tax detail that relates to the business. This will help your company in the short- and long-term, especially as sales tax grows in the digital world.   

Security and compliance knowledge

The increasingly complex world of sales and use tax is pushing companies to submit more information all the time to government authorities in their local jurisdictions and across borders. This means that data security and managing privacy concerns are now tax-related matters. Your tax and finance team must understand the role they play in privacy and security. Each employee must know how technology and processes work together to keep company information protected, especially as cloud-based sales tax solutions become preferred models for strategic growth.

Adaptability for evolving sales tax needs

Change management is often fueled by total cost of ownership (TCO), ROI and a desire for reduced manual work. More businesses are realizing the need for user-centric solutions that operate on the most up-to-date regulatory requirements. Your tax and finance team must remain adaptable and teachable to ensure that they can keep pace with changing technology. Otherwise, your business could lag behind and create unsatisfied customers. 

Furthermore, being able to evolve along with changing technology ensures that your tax team can gain increased efficiency while reducing manual work.

Take Action

Ready to prepare for the future of sales and use tax? Check out our infogram on aligning IT and tax departments for your move to the cloud.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Olivia Bilodeau

Olivia Bilodeau is Product Marketing Manager at Sovos for the Sales and Use Tax line of business. Her main areas of focus are to communicate the value of Sovos’ solutions through messaging, positioning, enablement & more, and help bring new products to market to make client’s lives even better. She enjoys connecting and building relationships with people, whether they are a client, fellow employee, or a friendly face at the local coffee shop. When she isn’t brainstorming different ways to solve tax for good, Olivia loves exploring the town she just moved to in New Hampshire and decorating the new house.
Share This Post
Share on facebook
Share on twitter
Share on linkedin
Share on email

ShipCompliant
December 3, 2021
Top 3 Reasons to Monitor Brand Labels for Beverage Alcohol

The first step in bringing a new beverage alcohol product to market, whether for sale through the three-tier system or by direct-to-consumer (DtC) shipping, is registering it with the Alcohol and Tobacco Tax Bureau (TTB). This must happen to get a Certificate of Label Approval (COLA), which ensures that suppliers and producers comply with federal […]

North America Sales & Use Tax
December 2, 2021
Sovos Global Tax Determination Seamlessly Handles Black Friday, Cyber Monday Sales

While Black Friday and Cyber Monday 2021 didn’t break records for ecommerce sales, the numbers still showed that online shoppers were out in full force. A return to in-store shopping, global supply chain issues and the continuing pandemic were all cited as likely key factors in the small drop in online shopping numbers this year. […]

EMEA Tax Compliance VAT & Fiscal Reporting
December 2, 2021
How to Prepare for a VAT Audit

In our previous blog, we looked at the challenges that businesses face in submitting VAT and other declarations on an ongoing basis. However, the compliance cycle doesn’t end there as tax authorities will carry out audits for a variety of reasons to validate declarations. Why do tax authorities carry out audits? When VAT returns consisted […]

ShipCompliant
December 1, 2021
Looking Back at Beverage Alcohol Regulatory Change in 2021

As 2021 comes to a close, perhaps there is small comfort in knowing that the old adage of “the only constant is change” remains true for beverage alcohol. Rules and regulations on direct-to-consumer (DtC) shipping are adjusted, more states are opening options for DtC shipping and economic nexus continues to impact how suppliers, shippers and […]

North America Tax Information Reporting
December 1, 2021
IRS Grants Permanent Relief for ACA Recipient Forms 1095-B & C

The IRS released Proposed Regulations this week that permanently extends the time for businesses to provide the Recipient copy of Forms 1095-B and 1095-C. Rather than continue to issue annual Notices to extend the date to issue the statement to the recipient, these regulations propose to permanently amend §1.6055-1(g)(4)(i) i to automatically grant filers a […]