Insights: Video

Benefits of Sales Tax Software

October 24, 2017

Learn more about why software may be the answer you’re looking for to help organize your taxable transactions.

 

Mike Herold: Hi, I’m Mike Herold and I’m Eide Bailly’s Director of State and Local Tax. We’re here to talk to you today about sales tax compliance software. We have the ever-changing sales tax laws around the country and the product codes are changing constantly: what’s taxable and what isn’t; what’s exempt? And with over 15,000 taxing jurisdictions, it’s very difficult for clients to keep up on these changes. We’re here to help you today and talk to you about various software solutions for your firm.

Benefit #1: Accurate Tax Rates

Mike Herold: One of the benefits of sales tax software is to provide you with accurate tax rates. This is often a problem for many businesses because we see rates changing monthly, sometimes weekly. We have various different tax rates, we might have a transit tax rate, might have a stadium tax, and knowing these rates when it’s in a jurisdiction far away from your home is very difficult. Software solutions provide you with that correct tax rate based on longitude and latitude of your customer.

Benefit #2: Law Changes and Important Developments

Mike Herold: Another big issue for tax payers is trying to understand when these laws go into effect and the various changes. You may have a product that’s taxable on June 30 in a certain jurisdiction but on July 1, it becomes exempt; or the other way around. How do you keep up with these changes in the laws, without understanding all the different tax laws and these 15,000+ jurisdictions in the country? Having that software solution automatically incorporates these tax law changes so that you won’t be a risk in an audit.

Benefit #3: Saves Time

Mike Herold: Software saves time by handling all of your calculations behind the scenes so that you no longer have to go out there with a pencil and paper and try to figure it out or use an Excel spreadsheet, like so many of us have had to do in the past. It also incorporates the latest changes in the rates. It also helps you if you’re undergoing an audit. It’s estimated that a typical tax payer pays $64,000 in a single state sales tax audit. Having the software in place speeds up that process and eliminates some of that cost.   

Benefit #4: Ensures Compliance

Mike Herold: So the software is very important for ensuring compliance. Number one, we’ve talked about the benefits. You have the accurate tax rate, you have the accurate taxability decisions and it also gives you that paper trail that you need for an audit. These combined really give you that key that you need for being competitive and having that edge over your competitors. Now you have the accurate rates; you’re not subject to the risk of audit; and also it’s going to speed up your entire process by handling this behind the scenes. It can also file your tax returns in some cases; also we do see the cost of your administrative personnel.

Let us help you!

Mike Herold: We at Eide Bailly are here to help you. We’re here to give you that competitive advantage so that you can successfully run your business and not worry about these sales tax issues. If you have any questions, please contact us. We’re here to help.

Latest Insights

November 15, 2018
Article
Until recently, many businesses weren’t overly concerned about sales tax. They knew they needed to collect and remit in the state in which they resided, but beyond that, their compliance burden was limited.
November 12, 2018
Article
This insight explores what dealerships can expect from the proposed section 199A regulations under tax reform.
November 8, 2018
Article
Are you a business taxpayer with annual gross receipts of $25 Million or less? If so, you may be eligible to take advantage of new Small Taxpayer Safe Harbors that could generate significant tax savings and simplify your tax returns in future years!
November 8, 2018
Article
Considered the most significant tax code overhaul in over three decades, the Tax Cuts and Jobs Act passed in 2017 includes provisions affecting both individuals and businesses.
November 7, 2018
Recorded Webinar
State and local sales tax compliance is always evolving, making it important to stay up-to-date on changes affecting your tax liability and responsibilities. This session will cover what you need to know regarding the recently enacted state and local…
November 7, 2018
Article
“Why is my portfolio underperforming the market?” This question may be on your mind.