Sales Tax Calculation and Collection Automation– Implementation Services
You’ve done a nexus analysis, determined that your products are taxable, and have registered for a sales tax license in the states where you have nexus.
The next step is setting up a reliable sales tax automation system.
This system will help your online store calculate accurate rates in real-time, based on location and product type, while staying up to date with legislative changes and regulations. Sales tax automation is a critical step in sales tax compliance.
An Automated Sales Tax System can help your business:
- Automatically calculate sales and use rates, customs and duties, VAT, and GST
- Use address-level data to automatically calculate combined rates, product-specific rates, sales tax holidays, and origin-based rates
- Stay on top of tax rate changes and new tax legislation
- Track economic nexus
- Organize sales tax data for more accurate filings
What the Tax Automation Software Companies Don’t Tell You
The benefits of a properly set-up automated system are clear, and tax automation software companies often advertise the benefits of their software with buzzwords like “Simplified and automated,” “zero effort,” and “instant tax compliance.”
However, there are some important things to consider about working solely with a software company:
Setup and implementation
Setup and implementation are not included. Companies leave the implementation part to you, a time-consuming distraction from your business’s main objectives.
Full Nexus Audits
Their software cannot tell you where you have physical nexus, click-through nexus, or affiliate nexus. For this, they will upsell you a nexus audit, often starting at around $5,000 per state.
Registrations and filing
Calculation and collection are typically covered by the base software, but manual work is required to complete the full sales tax cycle.
Specifically, many automation software neglects the registration and filing process, or offer the following as costly upsells:
- Automatically calculate sales and use rates, customs and duties, VAT, and GST
- Use address-level data to automatically calculate combined rates, product-specific rates, sales tax holidays, and origin-based rates
- Stay on top of tax rate changes and new tax legislation
Why Hire a Sales Tax Implementation Professional?
If you charge either too little or too much tax, the costs of correction can really add up. Small mistakes can hurt businesses in several ways. You’ll not only waste time fixing the errors, but you may also face government fines and penalties, get distracted from your main business objectives, lose customer trust, and possibly even face legal liability.
Why Choose eSenshi?
We work with your preferred software solution
We don’t take affiliate commissions, so there’s no conflict of interest. Every business has unique needs, and we’ll recommend the best software for your company—not the one that lines our pockets.
Our tax experts get it done right—the first time
Our tax professionals have intricate knowledge of the sales tax landscape that is critical in setting up your automated system correctly. This means we get it right the first time, helping you avod costly mistakes.
We’re a full-service sales tax company
Sales tax calculation and collection automation are just one aspect of the full sales tax compliance cycle. We offer all the additional services your business needs to remain compliant, including:
