Sales tax automation reduces (avoidable) errors that can trigger an audit

By ensuring accurate calculations and timely filings, the (avoidable) errors that can trigger audits are largely eliminated.

How? 

1. Automated sales tax software are impeccable record keepers

Say goodbye to paper invoices, messy spreadsheets, and human error. Automated systems record all your sales tax transactions, including dates, times, locations, sales amounts, and applied tax rates. What’s more, this info means you can respond to auditor requests ASAP, confidently knowing your books are on point.

2. Streamlined reporting and filing

By automatically generating reports for your specific state and local tax authorities requirements, sales tax software eliminates the need for manual data entry while ensuring compliance with the latest sales tax rates and regulations.

3. Readily available and more precise data 

With sales tax software, you can send auditors organized and easily accessible data when requested. Streamlined processes ensure highly accurate data, reducing the time and resources needed to respond to auditor requests and the associated costs.

Sales tax automation calculates the sales tax rate unique to your business 

Automated systems are constantly updated to align with changes in sales tax laws and rates. This adaptability is vital to maintain compliance, especially for businesses operating across various jurisdictions with different tax regulations. Sales tax compliance platforms, such as Complyt, also monitor new sales tax obligations that may arise for business scales that are expanding rapidly. (If this situation applies to you, be sure to check out our handy guide to navigating Nexus.)

By utilizing the most up-to-date tax rates and regulations for each jurisdiction you operate, sales tax automation guarantees accurate collection and remittance of the exact amount due. This data also lets you gain instant insights into your tax liabilities to identify and correct potential issues before an auditor knocks on your door.

Choosing the right sales tax automation solution

With various solutions out there, which one is right for your business? 

Consider the following factors:

  • Business size and complexity: Opt for a solution that scales with your business needs and handles the intricacies of your operations
  • State and local tax jurisdictions: Ensure the solution supports all jurisdictions you operate in and adheres to their specific regulations
  • Budget constraints: Choose a solution that fits your budget while offering the required features and functionality
  • Desired features and functionality: Explore real-time reporting, multi-state compliance tools, and integration with your existing ERP or accounting systems

Investing in a reliable automated sales tax solution simplifies your everyday tax compliance and equips you to handle audits confidently and efficiently. Ultimately, it lets you focus on running your business, knowing your days of worrying about sales tax audits are far behind.

Are you wondering about the state of your sales tax compliance? Grab your free Complyt sales tax assessment now!