When it comes to taxes, your organization has a lot to deal with, both internally and externally. According to a recent study by the Wakefield Group, 75% of business accounting professionals admit that any audits would reveal major tax mistakes. The more your company grows and expands, the likelier that newer taxes will become pressing. Finding a solution to your changing needs can be difficult especially as new obstacles appear in your industry.
In recent years, Sales Tax requirements have become more prominent as different states have applied it to online stores and other companies doing business in their area to collect untaxed revenue.
For many online companies, they’re now faced with a “Nexus” requirements which means they must collect sales tax if they maintain a prominent physical presence in that state. Something that’s now a requirement on the federal level thanks to a 2018 Supreme Court decision in “South Dakota v. Wayfair” where they sided with the state regarding their sales tax laws on any online retailers operating there.
Why Sales Taxes Matter To Distributors
If you’re a distributor that sells their products in multiple states, or on a national level, you’ll have many sales tax requirements to meet on a regular basis. To meet the growing demand for products in certain areas, you set up warehouses or distribution centers in these locations over time. As a result, each one must conform to specific state laws without issue.
Your accounting departments isn’t perfect and managing everything can often prove challenging, especially if regulators change conditions repeatedly. More products, more sales and just plain more of everything can be beneficial for your company’s growth, yet can provide many headaches when tax collection is required.
The Avalara Tax Solution
To better comply with different tax situations, a technological option can greatly enhance and improve your business. Avalara’s Tax Compliance Solution automates your existing tax requirements and creates a simplified format for your business.
As an end-to-end compliance option, this better responds to your existing needs and offers stronger means of ensuring every tax is fully met. If you’re using an ERP solution, this easily integrates into Microsoft, SAP, Epicor and Acumatica options creating the most comprehensive option possible. Ensuring all your tax requirements are met, while simplifying how your distribution business is run without any major hurdles.
For more information on how Avalara’s Tax Solution can help your company, take a look at this webinar where we discuss the impact of tax compliance.