Sales tax continues to grow in complexity which has expanded its organizational impact beyond the purview of just tax and finance departments. To effectively manage sales tax obligations in this new era of modern tax requires a partnership between IT and tax to ensure the proper systems and technology is in place to account for the multitude of regulatory changes taking place on a near daily basis. In this video, we explain how an effective sales tax solution should account for the nuances of your individual business and how it should seamlessly integrate with your existing technology.
Ensuring that your business is compliant with all state, county and local sales tax ordinances and nexus laws is not a nice to have, it’s an essential part of operating a successful business to lower your financial risk and potential for audits and damage to company reputation.
There are a number of tax software products that claim to make compliance easier, but you need to understand how adding new technology to your ecosystem will impact day to day operations. If new software is making life harder or adversely impacting other areas of the business, you have not succeeded in solving your sales tax management problem.
Many sales tax software implementations fail to meet the desired result because they don’t account for the unique challenges of your business. An out of the box, one size fits all sales tax solution sounds great in theory, but if it doesn’t address the challenges your are trying to solve it’s just another layer of IT complexity that needs to be managed.
If you are currently considering a tax software solution to help alleviate your compliance burden, here are three things to consider.
First, no two organizations are exactly alike, and all have their own unique problems and challenges, especially when it comes to tax compliance. Your solution should have a plan to account for these.
Two, how will your new tax software integrate with your existing architecture. You are looking to solve a specific set of sales tax compliance problems, not restructure your entire technology platform in the process.
Third, the end goal it to reduce the risk of audit and financial penalty by ensuring accuracy in your sales tax process. Don’t be distracted by other, non-essential features.
At Sovos, we will take the time to understand the nuances of your business and provide solutions uniquely qualified to solve your most pressing tax compliance issues.
We offer solutions and services with the flexibility to meet your most essential sales tax compliance needs and our hands-on approach ensures that you experience the benefits of our solutions quicker, with less time and resources required during the implementation phase.